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The Colorado Capital Development Committee voted unanimously to recommend the rejection of HB 1301, a bill proposing a ballot measure to increase marijuana and alcohol taxes to fund mental health treatment. Committee members and industry representatives raised concerns regarding declining cannabis revenue, high existing tax rates, and the potential to drive consumers toward the illicit market.

Colorado Committee Rejects Proposal for Voter-Approved Cannabis and Alcohol Tax Increases

Mar 17, 2026

Source:

Kyle Jaeger

Marijuana Moment

A Colorado legislative committee recently stood up for the local cannabis community by unanimously voting against a proposed tax hike on marijuana and alcohol. The bill, HB 1301, aimed to put a measure on the November ballot to increase taxes to fund mental health services. While the cause is noble, lawmakers and industry leaders are pushing back, noting that Colorado’s cannabis sales are already cooling off and existing tax rates are some of the highest around.

The committee raised valid concerns that making legal weed even more expensive would just push folks back to the illicit market. Even the bill's sponsor admitted they "threw marijuana in" just to spread the financial burden. For everyday tokers, this is a major win. It shows that some officials finally recognize that taxing the community into oblivion isn't a sustainable way to fund state projects. Keeping prices fair at the dispensary is essential for maintaining a healthy, legal market and ensuring that high-quality, safe flower remains accessible for everyone.

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