summary
Introduced
02/02/2026
02/02/2026
In Committee
02/26/2026
02/26/2026
Crossed Over
Passed
Dead
Introduced Session
2026 Regular Session
Bill Summary
Current law imposes a tax on the first sale or transfer of unprocessed retail marijuana at a rate of 15% of the average market rate of the unprocessed retail marijuana. The "average market rate" is currently defined as the average price, as determined by the department of revenue, of all unprocessed retail marijuana that is sold or transferred from retail marijuana cultivation facilities in the state to retail marijuana product manufacturing facilities or retail marijuana stores. Effective July 1, 2026, the bill defines "indoor unprocessed retail marijuana" and "outdoor unprocessed retail marijuana." The bill also amends the existing definition of "average market rate" to require separate rates for indoor unprocessed retail marijuana and outdoor unprocessed retail marijuana, which must be lower than the rates for indoor unprocessed retail marijuana. In addition, the existing definition of "average market rate" requires that unprocessed retail marijuana for extractions have a separate average market rate that is lower than the rate for unprocessed retail marijuana for direct sale to consumers. The bill clarifies that this requirement applies to both outdoor and indoor unprocessed retail marijuana.
AI Summary
This bill, effective July 1, 2026, modifies how taxes are calculated on unprocessed retail marijuana by creating separate tax rates based on how the marijuana is grown and its intended use. Currently, a 15% tax is applied to the average market rate of all unprocessed retail marijuana sold from cultivation facilities to manufacturers or stores. The bill introduces definitions for "indoor unprocessed retail marijuana," which is grown indoors using artificial light, and "outdoor unprocessed retail marijuana," which is grown under natural sunlight. Crucially, it mandates that the "average market rate" will now be determined separately for indoor and outdoor marijuana, with the rate for outdoor marijuana being lower. Furthermore, it clarifies that unprocessed marijuana intended for extractions (used to make products like concentrates) will have a lower average market rate than marijuana intended for direct sale to consumers, and this distinction now applies to both indoor and outdoor grown marijuana.
Committee Categories
Budget and Finance
Sponsors (5)
Ryan Gonzalez (R)*,
William Lindstedt (D)*,
Janice Marchman (D)*,
Marc Snyder (D)*,
Jenny Willford (D)*,
Last Action
House Committee on Finance Refer Unamended to Appropriations (on 02/26/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://leg.colorado.gov/bills/HB26-1077 |
| Fiscal Note FN1 | https://leg.colorado.gov/bill_files/112461/download |
| BillText | https://leg.colorado.gov/bill_files/111106/download |
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