CO Code § 39-28.8-202 (2021)
2021 Colorado Code|Title 39 - Taxation|Article 28.8 - Taxes on Marijuana and Marijuana Products|Part 2 - Retail Marijuana Sales Tax|§ 39-28.8-202. Retail Marijuana Sales Tax

      In addition to the tax imposed pursuant to part 1 of article 26 of this title 39 and the sales tax imposed by a local government pursuant to title 29, 30, 31, or 32, but except as otherwise set forth in subsections (1)(a)(II) and (1)(a)(III) of this section, beginning January 1, 2014, and through June 30, 2017, there is imposed upon all sales of retail marijuana and retail marijuana products by a retailer a tax at the rate of ten percent of the amount of the sale. Beginning July 1, 2017, there is imposed upon all sales of retail marijuana and retail marijuana products by a retailer a tax at the rate of fifteen percent of the amount of the sale. The tax imposed by this section is computed in accordance with schedules or forms prescribed by the executive director of the department; except that a retail marijuana store is not allowed to retain any portion of the retail marijuana sales tax collected pursuant to this part 2 to cover the expenses of collecting and remitting the tax. The executive director may promulgate rules to implement this section. (a) (I)In addition to the tax imposed pursuant to part 1 of article 26 of this title 39 and the sales tax imposed by a local government pursuant to title 29, 30, 31, or 32, but except as otherwise set forth in subsections (1)(a)(II) and (1)(a)(III) of this section, beginning January 1, 2014, and through June 30, 2017, there is imposed upon all sales of retail marijuana and retail marijuana products by a retailer a tax at the rate of ten percent of the amount of the sale. Beginning July 1, 2017, there is imposed upon all sales of retail marijuana and retail marijuana products by a retailer a tax at the rate of fifteen percent of the amount of the sale. The tax imposed by this section is computed in accordance with schedules or forms prescribed by the executive director of the department; except that a retail marijuana store is not allowed to retain any portion of the retail marijuana sales tax collected pursuant to this part 2 to cover the expenses of collecting and remitting the tax. The executive director may promulgate rules to implement this section.    If, for the fiscal year 2014-15, fiscal year spending is greater than twelve billion eighty million dollars or if the revenue from retail marijuana taxes is greater than sixty-seven million dollars, then on September 16, 2015, the rate of the tax imposed under subparagraph (I) of this paragraph (a) is reduced as specified in section 20 (3)(c) of article X of the state constitution. On September 17, 2015, in accordance with paragraph (b) of this subsection (1) and the authority that the voters conferred through their approval of proposition AA at the November 2013 election, the rate is increased back to ten percent.    (A) If the ballot issue referred to the voters in accordance with section 39-28.8-603 (1) is placed on the November 3, 2015, ballot and a majority of the electors voting thereon vote “No/Against”, then on January 1, 2016, the rate of the tax imposed under subparagraph (I) of this paragraph (a) is reduced to one-tenth of one percent as a method to refund revenues that exceed an estimate included in the ballot information booklet for proposition AA.       The maximum tax rate that may be imposed pursuant to this section is fifteen percent. At any time on or after January 1, 2014, the general assembly may, by a bill enacted by the general assembly and that becomes law:   Establish a tax rate to be imposed pursuant to this subsection (1) that is lower than fifteen percent of the sale of retail marijuana or retail marijuana products; or    After establishing a tax rate that is lower than fifteen percent pursuant to subparagraph (I) of this paragraph (b), increase the tax rate to be imposed pursuant to this subsection (1); except that, in no event shall the general assembly increase the tax rate above fifteen percent of the sale of retail marijuana or retail marijuana products. Notwithstanding any other provision of law, an increase in the tax rate pursuant to this subparagraph (II) shall not require voter approval subsequent to the voter approval required pursuant to part 4 of this article.    The department of revenue shall certify to the state treasurer, at least annually, the percentage for apportionment to each local government, and the percentage for apportionment so certified shall be applied by said department in all distributions to local governments until changed by certification to the state treasurer.    Distribution to each local government pursuant to this paragraph (a) shall be made monthly, no later than the fifteenth day of the second successive month after the month for which retail marijuana sales tax collections are made.    Each local government, upon request and during established business hours, shall be entitled to verify with the executive director of the department or the executive director's designee the proceeds to which the local government is entitled pursuant to the provisions of this paragraph (a).    Moneys apportioned pursuant to this paragraph (a) shall be included for informational purposes in the general appropriation bill or in supplemental appropriation bills for the purpose of complying with the limitation on state fiscal year spending imposed by section 20 of article X of the state constitution and section 24-77-103, C.R.S.    Nothing in this paragraph (a) shall be construed to prevent a local government from imposing, levying, and collecting any fee or any tax upon the sale of retail marijuana or retail marijuana products or upon the occupation or privilege of selling retail marijuana products, nor shall the provisions of this paragraph (a) be interpreted to affect any existing authority of a local government to impose a tax on retail marijuana or retail marijuana products to be used for local and municipal purposes; however, any local tax imposed at other than the local jurisdiction's general sales tax rate shall not be collected, administered, and enforced by the department of revenue pursuant to section 29-2-106, C.R.S., but shall instead be collected, administered, and enforced by the local government itself.          Nothing in this section shall be construed to impose a tax on the sale of marijuana or marijuana products to any person by a medical marijuana center.    Repealed.      History. Source: L. 2013: Entire article added,(HB 13-1318), ch. 330, p. 1868, § 1, effective May 28. L. 2015: (1)(a) amended,(HB 15-1367), ch. 271, p. 1065, § 3, effective June 4. L. 2017: (1)(a)(I) and (3) amended,(HB 17-1136), ch. 76, p. 238, § 6, effective March 23; (1)(a)(I) amended,(SB 17-267), ch. 267, p. 1471, § 29, effective May 30. L. 2019: (1)(a)(I) amended and (3) repealed,(HB 19-1256), ch. 395, p. 3516, § 8, effective August 2.    Editor's note:   Amendments to subsection (1)(a)(I) by HB 17-1136 and SB 17-267 were harmonized.   Cross references:    For the legislative declaration in HB 15-1367, see section 1 of chapter 271, Session Laws of Colorado 2015.    For the legislative declaration in SB 17-267, see section 1 of chapter 267, Session Laws of Colorado 2017.