HB 1409: Marijuana Tax Cash Fund Distributions - Colorado

Final Act → Signed Act · 4 edits · Jun 4, 2026

MODERATE

This bill updates the distribution rules for Colorado's retail marijuana sales tax, specifically correcting formatting errors in the statute text and adjusting the reference to the state's emergency reserve fund. The changes ensure the legal text accurately reflects the intended allocation percentages and clarifies how funds are transferred to the general fund and specific state accounts.

Scope change

The bill's substantive scope regarding tax distribution remains unchanged; the modifications are primarily technical corrections to the statutory language and formatting.

TECHNICAL

Corrected inconsistent capitalization and numbering in the statute (e.g., changing '1' to 'l' and '1.6' to '1.6') to ensure legal clarity.

Fixed a formatting error in the emergency reserve fund reference where spaces were missing between words, restoring the correct legal phrase 'SEPARATE BILL TO CONSTITUTE ALL OR A PART OF THE EMERGENCY RESERVE PURSUANT'.

Deleted the 'Final Act' header and signature block placeholders, replacing them with the 'Signed Act' format and actual signatures.

Adjusted the formatting of the bill title and sponsor list to match the standard 'Signed Act' style.

Rerevised → Final Act · 3 edits · Jun 2, 2026

MINOR

This bill updates the distribution schedule for Colorado's retail marijuana sales tax revenue. It changes the percentage of tax revenue sent to local governments from 3.5% to 10% for the period between July 1, 2025, and July 1, 2026, and then to 3.5% starting July 1, 2026. Additionally, it establishes a new recurring transfer from the Marijuana Tax Cash Fund to the State Public School Fund beginning June 30, 2027, to ensure schools receive their share of the revenue annually.

Scope change

The bill modifies the fiscal applicability of the marijuana tax distribution, specifically adjusting the dates and percentages for local government allocations and introducing a new annual transfer mechanism for public education.

FISCAL

The percentage of gross retail marijuana sales tax revenue apportioned to local governments was changed from 3.5% to 10% for the interim period between July 1, 2025, and July 1, 2026, before reverting to 3.5% on July 1, 2026.

The specific percentages of tax revenue transferred to the State Public School Fund and the Marijuana Cash Fund were adjusted to account for the new local government allocation percentages and the new annual transfer requirement.

TIMELINE

A new requirement was added for the State Treasurer to transfer funds from the Marijuana Tax Cash Fund to the State Public School Fund on June 30, 2027, and every June 30 thereafter.

Revised → Rerevised · 2 edits · Apr 16, 2026

MINOR

The bill was re-revised to include all amendments adopted in the Senate, updating the version status to reflect the latest legislative actions. The specific text regarding the State Treasurer's obligation to transfer funds to the School Fund on June 30, 2027, was removed from this version, likely due to a formatting error or a pending amendment that altered the funding mechanism.

Scope change

The bill's scope regarding the specific funding transfer mechanism was altered by the removal of the statutory requirement for the State Treasurer to transfer funds to the School Fund.

FISCAL

The requirement for the State Treasurer to transfer the difference between the fund balance and 15% of appropriated funds to the School Fund on June 30, 2027, and thereafter, was deleted.

TECHNICAL

The header was updated from 'REVISED' to 'REREVISED' to indicate that all Senate amendments have been incorporated.

Reengrossed → Revised · 3 edits · Apr 15, 2026

MINOR

The bill was reclassified from 'Reengrossed' to 'Revised' to reflect amendments adopted during the second reading in the Senate. Substantively, the timeline for tax revenue distribution was extended to include a new period starting July 1, 2027, where 3.5% of sales tax revenue goes to local governments, and the state's retention period was adjusted to end before July 1, 2027.

Scope change

The bill's applicability was extended to cover the fiscal period from July 1, 2027, to July 1, 2028, whereas the previous version only covered up to July 1, 2026.

TIMELINE

The date range for the 3.5% local government revenue share was expanded to include the period on and after July 1, 2027.

The date range for the state treasurer's 14% revenue retention was updated to end before July 1, 2027.

TECHNICAL

Sections regarding the Emergency Reserve Fund and the Safety Clause were removed from the text.

Engrossed → Reengrossed · 3 edits · Apr 11, 2026

MINOR

The bill was reengrossed to include all amendments adopted during the House of Introduction, updating the official title and sponsor list. A new notice was added indicating that a summary for the reengrossed version will be available after the third reading, with a specific date of April 11, 2026. No substantive policy changes regarding the bill's scope, funding, or requirements were made in this version.

TECHNICAL

Added a specific date (April 11, 2026) for when the reengrossed bill summary will be available.

Updated the bill status from 'Engrossed' to 'Reengrossed' to reflect the inclusion of all amendments.

Added 'Carter' to the list of House sponsors.

Introduced → Engrossed · 4 edits · Apr 9, 2026

MODERATE

The bill was amended to remove the distribution of marijuana sales tax revenue to local governments, redirecting all funds to state-level accounts. This change shifts the fiscal impact from municipalities to the state, specifically increasing the share allocated to the marijuana tax cash fund and public schools. The amendment also updates the document's status from 'Introduced' to 'Engrossed', indicating it has passed the House with amendments.

Scope change

The bill's scope regarding fund distribution was narrowed by removing the allocation of revenue to local governments, affecting only state-level funding pools.

FISCAL

Eliminated the provision that distributed marijuana sales tax revenue to local governments.

Added a new allocation of 11.33% of gross retail marijuana sales tax revenue to the state public school fund.

TECHNICAL

Updated the bill header to reflect that it is 'Engrossed' and includes all amendments adopted on second reading.

Changed the bill number formatting in the page headers from 'HB26-1409' to '1409'.

Marijuana Tax Cash Fund Distributions

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