2023 Colorado Revised Statutes › Title 39 - TAXATION (§§ 39-1-101 — 39-37-301) › SPECIFIC TAXES (§§ 39-20-101 — 39-37-301) › SALES AND USE TAX (§§ 39-26-101 — 39-26.1-101) › Article 26 - Sales and Use Tax (§§ 39-26-101 — 39-26-901) › Part 7 - SALES AND USE TAX EXEMPTIONS (§§ 39-26-701 — 39-26-734) › Section 39-26-729 - Retail sales of marijuana

(1)
(a)
Except as otherwise provided in subsection (1)(b) of this section, on and after July 1, 2017, all retail sales of marijuana upon which the retail marijuana sales tax is imposed pursuant to section
39-28.8-202
are exempt from taxation under part 1 of this article 26 by the state or by any special district or other limited purpose governmental entity that was not levying sales tax on retail sales of marijuana under part 1 of this article 26 before July 1, 2017. Notwithstanding any other law to the contrary, any special district or other limited purpose governmental entity that was levying sales tax on retail sales of marijuana under part 1 of this article 26 before July 1, 2017, retains its authority to continue levying sales tax upon retail sales of marijuana under this article 26.
(b)
Any metropolitan district that levies a general uniform sales tax as authorized by section
32-1-1106 (1)
, health assurance district that levies a general uniform sales tax as authorized by section
32-19-112 (1)
, or health service district that levies a general uniform sales tax as authorized by section
32-19-112 (1)
may levy its general uniform sales tax on retail sales of marijuana upon which the retail marijuana sales tax is imposed pursuant to section
39-28.8-202
regardless of whether or not the district was levying any sales tax on such sales before July 1, 2017.
(2)
The governing body of any special district or limited purpose governmental entity that was levying sales tax upon retail marijuana sales before July 1, 2017, and the governing body of any metropolitan district, health assurance district, or health service district that is authorized by subsection (1)(b) of this section to levy a general uniform sales tax on retail marijuana sales shall determine whether the levying of such sales tax complies with the Colorado constitution and applicable decisions of the Colorado supreme court and Colorado court of appeals and, if the governing body of any such special district or limited purpose governmental entity determines that additional voter approval is required to levy sales tax upon retail sales of marijuana, the special district or limited purpose governmental entity shall not resume levying sales tax upon such sales until voter approval is obtained.
(3)
The storage, use, or consumption of any retail marijuana that is exempt from sales tax by operation of subsection (1) of this section is exempt from taxation under the provisions of part 2 of this article 26.
Amended by 2021 Ch. 55, § 6, eff. 9/7/2021.
Amended by 2018 Ch. 406, § 2, eff. 1/1/2019.
Amended by 2018 Ch. 3, § 2, eff. 2/22/2018.
L. 2017: Entire section added, (SB 17-267), ch. 1471, p. 1471, § 28, effective May 30. L. 2018: Entire section amended, (SB 18 -088), ch. 27, p. 27, § 2, effective February 22; (1)(b) and (2) amended, (SB 18-259), ch. 2390, p. 2390, § 2, effective 1/1/2019. L. 2021: (3) added, (HB 21 -1177), ch. 229, p. 229, § 6, effective September 7.
Section 3 of chapter 3 (SB 18-088), Session Laws of Colorado 2018, provides that the provisions of this act that authorize the continued levying of sales tax on retail sales of marijuana apply retroactively, but not retrospectively, curatively, and remedially to retail marijuana sales occurring on and after July 1, 2017, but, notwithstanding that authorization, authorized sales taxes that were not actually collected on retail sales of marijuana occurring on and after July 1, 2017, but before February 22, 2018, shall not be collected.
2021 Ch. 55, was passed without a safety clause. See Colo. Const. art. V, § 1(3).
(1) For the legislative declaration in SB 17-267, see section 1 of chapter 267, Session Laws of Colorado 2017. (2) For the legislative declaration in SB 18-088, see section 1 of chapter 3, Session Laws of Colorado 2018.