2016 Colorado Revised Statutes
Title 39 - Taxation
Specific Taxes
Article 28.8 - Taxes on Marijuana and Marijuana Products
Part 6 - Ballot Issue Related to Proposition Aa Refunds - Permitted Uses
§ 39-28.8-605. Refunds - retail marijuana sales tax rate reduction - revenue backfill - legislative declaration - repeal

(1) The general assembly hereby finds and declares that:

(a) If the ballot issue is referred to the voters and a majority of those voting thereon reject the ballot issue, the state will be required by section 20 (3) (c) of article X of the state constitution to make refunds prior to July 1, 2016;

(b) As of June 4, 2015, the amount of the refund is expected to be fifty-eight million dollars, which is equal to the anticipated total amount of all of the retail marijuana tax revenues collected in the state during the fiscal year 2014-15;

(c) To the extent possible, the refund should be made from revenues that the state received during the fiscal year 2014-15; and

(d) The refund mechanisms set forth in section 39-28.8-202 (1) (a) (III) and in this part 6 are reasonable ways to refund revenues that exceed an estimate included in the ballot information booklet for proposition AA, if required by section 20 (3) (c) of article X of the state constitution.

(2) If a majority of the electors voting on the ballot issue vote "No/Against", then on January 1, 2016, the state treasurer shall transfer thirteen million three hundred thousand dollars from the proposition AA refund account to the marijuana tax cash fund to replace the anticipated decrease in revenue that will result from the retail marijuana sales tax rate reduction in section 39-28.8-202 (1) (a) (III) (B).

(3) If a majority of the electors voting on the ballot issue vote "No/Against", then after March 1, 2016, but prior to July 1, 2016, the department of revenue shall refund to a retail marijuana cultivation facility all of the taxes the facility paid during the 2014-15 fiscal year in accordance with section 39-28.8-302 (1). The department shall pay the refund from the moneys in the proposition AA refund account. The department shall establish procedures for the refunds but shall not require a facility to apply for a refund to receive one.

(4) If a majority of the electors voting on the ballot issue vote "No/Against", then twenty-five million dollars from the proposition AA refund account is excess state revenues, as defined in section 39-22-2002 (3) (c), for the fiscal year 2014-15 that are required to be refunded to qualified individuals for the taxable year commencing on January 1, 2015, in accordance with the provisions of section 39-22-2002. If there are other excess state revenues refunded, the department shall include a separate line on the 2015 income tax return for the refund required by this subsection (4) that is named "sales tax refund related to proposition AA blue book estimates".