Colorado Lawmakers File 2026 Ballot Measure to Raise Marijuana and Alcohol Taxes for New Mental Health Institute
- Colorado lawmakers have introduced House Bill 26-1301 to seek voter approval for tax increases on retail marijuana and alcoholic beverages to fund a new state-run mental health facility in Aurora.
- The bill proposes raising the retail marijuana sales and excise taxes by 0.42 percentage points and increasing excise taxes on various alcoholic beverages starting in 2027, pending voter approval in November 2026.
- Revenue from these tax increases would be allocated to a new “hospital support account” to finance the construction, operation, and expansion of mental health facilities, including the Colorado Mental Health Institute at Aurora.
- The institute would have 50 to 70 beds for individuals with mental health or substance use disorders, operate under the Department of Human Services, and collaborate with the University of Colorado health sciences center, with estimated annual revenue increases of $44 million.
Colorado lawmakers have filed House Bill 26-1301, which would ask voters to approve tax increases on retail marijuana and alcoholic beverages to fund a new state-run mental health facility in Aurora. Filed in the House and sponsored by Representative Bob Marshall (D) and Senator Judith Amabile (D), the proposal would place a question on the November 2026 ballot seeking voter approval to increase excise taxes on malt liquor, vinous liquor, spirituous liquor and hard cider, along with a 0.42 percentage point increase to both the state’s retail marijuana sales tax and retail marijuana excise tax.
Under the measure, the retail marijuana sales tax would rise from 15% to 15.42% beginning January 1, 2027, if approved by voters. The same increase would apply to the 15% excise tax on the first transfer of unprocessed retail marijuana. The bill also establishes new per-gallon and per-liter excise tax increases on alcoholic beverages starting in 2027.
Revenue generated from the increases would be transferred to a newly created “hospital support account” within the state’s capital construction fund. According to the bill text, that funding would be used first for the construction of the Colorado Mental Health Institute at Aurora, then for its operational expenses, and finally for long-term civil commitment facilities in Mesa County.
The institute would operate under the Department of Human Services and is required to maintain between 50 and 70 beds for individuals with mental health, behavioral health or substance use disorders. The bill outlines hiring authority, contracting provisions with the University of Colorado health sciences center, and criteria to ensure patients are evaluated for the least restrictive level of care before admission.
The ballot language included in the proposal states the tax changes would increase state revenue by an estimated $44 million annually, with the additional funds treated as a voter-approved revenue change.
HB 26-1301 has been assigned to the House Health & Human Services and Finance committees for consideration.