The Colorado Legislature has passed Senate Bill 268, a measure that significantly alters how marijuana tax revenue is distributed and used in the state.
The measure has been approved by both the House (45 to 19), and the Senate (32 to 0), with a conference committee voting today to approve amendments made in each chamber so as to align the bill’s text and allow it to be sent to Governor Jared Polis for consideration.
SB 268 makes three major changes. First, it ends the current requirement that $3 million be allocated annually from the Marijuana Tax Cash Fund to support a University of Colorado program expanding access to medication-assisted treatment. Beginning July 1, 2025, lawmakers will have discretion over whether to fund the program.
Second, the bill repeals a $20 million transfer scheduled for June 1, 2026, from the Marijuana Tax Cash Fund to the Public School Capital Construction Assistance Fund. Instead, the funds will remain under state control.
Finally, SB 268 cuts the portion of marijuana sales tax revenue distributed to local governments from 10% to 3.5%, starting in fiscal year 2025-26. The state’s share will increase to 96.5%, with the added revenue allocated primarily to the Marijuana Tax Cash Fund.
The bill passed the Senate 32 to 0, with three members not voting. In the House, a failed initial vote was followed by approval of the revised conference report, ultimately clearing the chamber 39 to 25.
SB 268 now heads to Governor Jared Polis for final consideration.
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