Colorado’s full House of Representatives has given final approval to House Bill 1409, a measure that would change how money from the state’s retail marijuana sales tax is distributed beginning July 1, 2026.

Under current law, 3.5% of gross retail marijuana sales tax revenue is distributed to local governments. HB 1409 would end that distribution and instead send 73.17% of the revenue to the Marijuana Tax Cash Fund, 11.33% to the State Public School Fund, 1.5% to the Marijuana Cash Fund, and 14% to the general fund.

The bill, which was filed by State Representative Kyle Brown (D) along with a bipartisan group of six cosponsors, also includes a provision requiring the state treasurer, starting June 30, 2027 and each June 30 after that, to transfer additional money from the Marijuana Tax Cash Fund to the State Public School Fund. The amount transferred would be based on the remaining balance in the fund after accounting for 15% of what lawmakers appropriated from it that fiscal year, as well as any emergency reserve amount designated by the General Assembly.

The legislation cleared the House on third reading April 11 without amendments. If enacted, it would mark a notable shift in how Colorado uses marijuana tax revenue, moving money away from direct local government distributions and placing a larger share into state-level funds, including public education.