Bill > HB1318

This bill establishes new taxes on retail marijuana and marijuana products in Colorado, creating a new article in the state's tax laws. It defines key terms such as "consumer," "department" (referring to the Department of Revenue), "retail marijuana," and "average market rate," which is the average price of unprocessed retail marijuana sold between cultivation facilities and manufacturers or stores, determined biannually. The bill imposes a retail marijuana sales tax of 10% on all sales by retailers, with a maximum potential rate of 15% that the General Assembly can adjust without further voter approval. It also levies an excise tax of 15% on the average market rate of unprocessed retail marijuana at its first sale or transfer from a cultivation facility to a manufacturing facility or store, with the same flexibility for the General Assembly to adjust this rate up to 15%. Revenue from these taxes is primarily directed to the Old Age Pension Fund, with 15% of sales tax revenue allocated to local governments, and remaining excise tax revenue going to the Marijuana Cash Fund for industry regulation and other related costs, and the first $40 million of excise tax revenue annually designated for public school capital construction. The bill also outlines record-keeping requirements for marijuana businesses and specifies that these new taxes are voter-approved revenue changes, meaning their collection and spending are not subject to further voter approval beyond the initial ballot measure. Finally, it includes provisions for appropriations to implement the act and details the conditions under which certain sections, including the new tax laws, will take effect, contingent on voter approval of a ballot question in November 2013.