Marijuana Revenue in the State Budget

This memorandum answers common questions about how revenue from the marijuana industry fits into Colorado’s state budget. Colorado collected $231.1 million from the marijuana industry in FY 2024-25 primarily from three distinct taxes: 

• a 15 percent excise tax,
• a 15 percent special sales tax, and
• the state’s 2.9 percent general sales tax. 

Marijuana tax revenue distributions are established in state law and occur through the budget process each year. Fifteen state agencies, multiple local governments, and the state General Fund will receive marijuana tax revenue in FY 2025-26. K-12 schools received $83.3 million for school construction and school funding, representing 33.3 percent of total marijuana distributions. 

Additionally, local governments that license marijuana businesses may impose and collect their own taxes on marijuana products. Taxes collected at the local level are not included in this memorandum.