CO SB259

Counties and municipalities authorized to levy excise taxes up to 5% on first sale or transfer of unprocessed retail marijuana by cultivation facilities, calculated based on average market rate for affiliated business transactions or contract price for unaffiliated business transactions.

Counties prohibited from levying excise tax within municipalities that already levy such tax; municipalities that obtained voter approval before November 1, 2018 to tax based on average market rate may continue using that calculation through December 31, 2020.

Transportation of unprocessed retail marijuana by a retail marijuana transporter is not considered a transfer for purposes of local excise tax obligations.

State licensing authority required to complete rulemaking by January 1, 2019 on fencing and lighting requirements for outdoor marijuana grows and greenhouses.

State excise tax increased from 10% to 15% on first sale or transfer of unprocessed retail marijuana between affiliated or unaffiliated cultivation facilities; appropriates $15,840 to Department of Revenue for GenTax system support; effective January 1, 2019.