C.R.S. § 39-28.8-202 — Retail marijuana sales tax

(1) (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. (II) 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. (III) (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. (B) If the retail marijuana sales tax rate is reduced in accordance with sub-subparagraph (A) of this subparagraph (III), then on March 3, 2016, and on the third business day of the next three months thereafter, if necessary, the executive director of the department shall determine whether the amount refunded to that date through the rate reduction is greater than or equal to the required retail marijuana sales tax refund. If so, then the rate reduction expires on the fifth day after the determination. If, as of June 3, 2016, the amount refunded through the rate reduction is still less than the required retail marijuana sales tax refund, then the rate reduction expires on June 30, 2016. The executive director shall estimate the amount of the refund for the time included in a determination for which the actual revenue is unknown. (C) On the day after the temporary retail marijuana rate reduction expires in accordance with sub-subparagraph (B) of this subparagraph (III), the retail marijuana tax rate is increased back to ten percent. (D) As used in this subparagraph (III), required retail marijuana sales tax refund means an amount equal to the total proposition AA blue book refund amount calculated under section 39-28.8-602 (1) minus the sum of the amounts refunded through section 39-28.8-605 (3) and (4). (b) 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: (I) 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 (II) 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. (2) 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. (3) Repealed. 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: (1) For the legislative declaration in HB 15-1367, see section 1 of chapter 271, Session Laws of Colorado 2015. (2) For the legislative declaration in SB 17-267, see section 1 of chapter 267, Session Laws of Colorado 2017.