Colorado lawmakers use marijuana taxes to reduce budget shortfall
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By John Frank
Published on April 20, 2026.
Colorado lawmakers are using marijuana taxes to help alleviate a $1.5 billion shortfall in the state budget. The projected $220 million in projected marijuana taxes is spread throughout the spending package.73% of these funds will go to the marijuana tax cash fund for distribution other purposes, while 11% will go towards education through the state public school fund. The diversion of this money from education is becoming a trend. However, marijuana tax revenue is becoming less reliable due to low prices, decreased demand and increased hemp sales. A bill has been introduced to significantly increase the tax revenue, replacing the 15% excise tax with a $100 per pound tax on unprocessed retail marijuana.
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