CO HB1077

HB 26-1077: Average Market Rate of Unprocessed Retail Marijuana

• Creates separate "average market rate" tax categories for indoor versus outdoor unprocessed retail marijuana, effective July 1, 2026

• Requires outdoor unprocessed retail marijuana rates to be lower than indoor rates

• Establishes that marijuana allocated for extractions (including fresh frozen) must have lower rates than marijuana allocated for direct consumer sale, applying to both indoor and outdoor categories

• Defines "outdoor unprocessed retail marijuana" as cultivated under natural sunlight without artificial light or light deprivation in the canopy area, with an exception allowing artificial light for vegetative plants under 24 inches and mother plants

• Defines "indoor unprocessed retail marijuana" as cultivated within an indoor structure using artificial lighting or any method other than outdoor cultivation