Panel advances tax change to ease burden on outdoor cannabis growers, adopts J amendment

The House Appropriations Committee advanced House Bill 10‑77 as amended after adopting a J‑amendment designed to change tax treatment to better reflect differences between outdoor and indoor cannabis production.

Representative Gonzalez, the bill sponsor, told the committee the measure is intended to help outdoor growers facing inventory shortages and turnover by creating an average market rate so outdoor growers do not face a heavier tax burden than indoor growers. Gonzalez said the change is intended to keep outdoor cultivators operating in Colorado and avoid longer‑term revenue losses to the state.

The packet included a fiscal note number listed in the hearing as “22359.” The chair and members said the fiscal impact should be monitored, noting that individual transactions may produce higher or lower excise tax owed depending on cultivation and processing methods.

The Vice Chair moved the J amendment and the committee adopted it without recorded objection. The sponsor moved the bill as amended to the Committee of the Whole; the Chair announced the bill was advanced for further consideration.

Committee members did not record extended debate on the floor, but the chair noted staff would continue to monitor revenue impacts as the bill moves forward.