Changeflow GovPing Government & Legislation HB26-1409 Revises Retail Marijuana Sales Tax Di...
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HB26-1409 Revises Retail Marijuana Sales Tax Distribution Allocations

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Summary

HB26-1409 would eliminate the current 3.5% distribution of gross retail marijuana sales tax revenue to local governments and redistribute the funds across four new allocation categories: 73.17% to the marijuana tax cash fund, 11.33% to the state public school fund, 1.5% to the marijuana cash fund, and 14% to the general fund. The bill also creates a year-end sweep mechanism requiring the state treasurer to transfer funds to the state public school fund based on a formula tied to the marijuana tax cash fund balance and legislative appropriations. The bill passed both chambers and adopted a Conference Committee Report on April 24, 2026, but has not yet been signed into law.

“Current law requires 3.5% of the gross retail marijuana sales tax revenue to be distributed to local governments.”

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The Colorado General Assembly publishes every bill, amendment, fiscal note, and committee report introduced during the legislative session through this feed. Around 140 entries a month while the legislature is in session, covering education, healthcare, workforce, environment, criminal justice, and tax. Colorado is one of the fastest-moving states for cannabis, healthcare reform, and worker protection legislation, so what gets introduced here often previews what other states will copy a year or two later. Watch this if you lobby in Colorado, advise multistate clients on regulatory creep, or track interstate trends in any of those areas. GovPing publishes each bill with the sponsor, status, and committee assignment.

What changed

HB26-1409 modifies the statutory distribution framework for Colorado's retail marijuana sales tax revenue by eliminating the fixed 3.5% local government allocation and replacing it with a tiered distribution structure allocating funds to the marijuana tax cash fund (73.17%), state public school fund (11.33%), marijuana cash fund (1.5%), and general fund (14%). The bill also adds a year-end reconciliation mechanism requiring the state treasurer to transfer excess balances from the marijuana tax cash fund to the state public school fund.

Local governments currently receiving marijuana tax distributions will lose that revenue stream if this bill becomes law. The bill shifts a meaningful portion of marijuana tax proceeds toward education funding via the state public school fund and expands the general fund's share of marijuana tax revenue from zero to 14%. State budget administrators and local government finance officials should monitor the bill's progress toward gubernatorial action.

Archived snapshot

Apr 25, 2026

GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.

HB26-1409

Marijuana Tax Cash Fund Distributions

Type Bill
Session 2026 Regular Session
Subjects Fiscal Policy & Taxes Liquor, Tobacco, & Marijuana Local Government State Government State Revenue & Budget

Concerning the distribution of money collected from the retail marijuana sales tax.

Recent Bill (PDF) Recent Fiscal Note (PDF) Bill Summary:

Joint Budget Committee. Current law requires 3.5% of the gross retail marijuana sales tax revenue to be distributed to local governments. The bill eliminates the distribution to local governments and allocates the gross retail marijuana sales tax revenue as follows:

  • 73.17% to the marijuana tax cash fund (fund);
  • 11.33% to the state public school fund;
  • 1.5% to the marijuana cash fund; and
  • 14% to the general fund.
    The bill also directs the state treasurer to transfer from the fund to the state public school fund at the end of each fiscal year, an amount equal to the difference between the balance of the fund and:

  • 15% of the amount that the general assembly appropriated from the fund in that fiscal year; and

  • Any amount of the fund designated to be part of the emergency reserve for that fiscal year.

(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

Prime Sponsors


Representative

Kyle Brown
Representative

Emily Sirota
Senator

Jeff Bridges
Senator

Barbara Kirkmeyer

Committees

House

Appropriations

Senate

Appropriations

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Status

Under Consideration

Introduced

Under Consideration


Upcoming Schedule

1 meeting

Mon

Apr 27

House Consideration of Conference Committee Report(*s)

10:00 AM House Chamber


Related Documents & Information

Date Version Documents
04/16/2026 Rerevised PDF
04/15/2026 Revised PDF
04/11/2026 Reengrossed PDF
04/09/2026 Engrossed PDF
04/02/2026 Introduced PDF
Date Version Documents
04/17/2026 First Revised Fiscal Note PDF
04/03/2026 Initial Fiscal Note PDF
Activity Vote Documents
Activity Vote Documents
Refer House Bill 26-1409 to the Committee of the Whole and with a recommendation that it be placed on the consent calendar. The motion passed on a vote of 7-0. Vote summary
Hearing Summary Committee Report: PDF
Activity Vote Documents
--- --- ---
Refer House Bill 26-1409 to the Committee of the Whole. The motion passed on a vote of 10-1. Vote summary
Hearing Summary Committee Report: PDF
Date Calendar Motion
--- --- ---
04/24/2026 Conference Committee Report REPASS
04/24/2026 Conference Committee Report ADOPT CCR
04/16/2026 Third Reading BILL

| --- | --- | --- | --- | --- |
| 04/17/2026 | Senate Amendments | NOT CNCR | 53 AYE 9 NO 3 OTHER | Vote record |
| 04/11/2026 | Third Reading | BILL | 42 AYE 17 NO 6 OTHER | Vote record |

Date Amendment Number Committee/ Floor Hearing Status Documents
04/15/2026 L.002 Second Reading Passed [**] PDF
  • Amendments passed in committee are not incorporated into the measure unless adopted by the full House or Senate.

** The status of Second Reading amendments may be subsequently affected by the adoption of an amendment to the Committee of the Whole Report. Refer to the House or Senate Journal for additional information.

Date Location Action
04/24/2026 Senate Senate Consideration of First Conference Committee Report result was to Adopt Committee Report - Repass
04/17/2026 House House Considered Senate Amendments - Result was to Not Concur - Request Conference Committee
04/16/2026 Senate Senate Third Reading Passed - No Amendments
04/15/2026 Senate Senate Second Reading Special Order - Passed with Amendments - Floor
04/14/2026 Senate Senate Committee on Appropriations Refer Unamended - Consent Calendar to Senate Committee of the Whole
04/13/2026 Senate Introduced In Senate - Assigned to Appropriations
04/11/2026 House House Third Reading Passed - No Amendments
04/10/2026 House House Third Reading Laid Over Daily - No Amendments
04/09/2026 House House Second Reading Special Order - Passed - No Amendments
04/08/2026 House House Second Reading Special Order - Laid Over Daily - No Amendments
04/07/2026 House House Committee on Appropriations Refer Unamended to House Committee of the Whole
04/02/2026 House Introduced In House - Assigned to Appropriations

Prime Sponsor

Rep. K. Brown | Rep. E. Sirota


Sen. J. Bridges | Sen. B. Kirkmeyer

Sponsor

Rep. R. Taggart


Sen. J. Amabile

Co-Sponsor

Rep. M. Carter


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Last updated

Classification

Agency
CO Legislature
Instrument
Consultation
Branch
Legislative
Bill ID
HB26-1409
Legal weight
Non-binding
Stage
Draft
Change scope
Substantive

Who this affects

Applies to
Government agencies Local governments
Industry sector
4453 Cannabis
Activity scope
Tax revenue distribution Marijuana sales taxation
Geographic scope
Colorado US-CO

Taxonomy

Primary area
Taxation
Operational domain
Finance
Topics
State Government Local Government Cannabis

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