Licensing
License Types (MED)
- Retail Marijuana Cultivation Facility — tiered by canopy size; unlimited canopy available
- Dual licensing: may hold both medical and retail licences
- Residency requirement removed 2022
- Retail Marijuana Products Manufacturer — edibles, concentrates, topicals
- Retail Marijuana Store — storefront adult-use sales
- Local licensing required in addition to state
- Must be 1,000 ft from schools
- Retail Marijuana Testing Facility — ISO 17025; no vertical integration
- Retail Marijuana Transporter — B2B transport
- Retail Marijuana Delivery — direct-to-consumer delivery available statewide (HB21-1317)
- Hospitality & Consumption — on-site consumption licence for cannabis lounges
- Medical Marijuana Centre / Dispensary — medical sales only
- Social Equity Licensee — priority and fee waivers for equity applicants
Taxation
Combined Tax Rate (Recreational)~28.25% state + local
Retail Excise Tax
15%
On retail marijuana sales
Wholesale Excise Tax
15%
Cultivator to retailer transfer
State Sales Tax
2.9%
Standard CO sales tax
Denver Local Tax
5.5%
Varies by municipality
Medical Tax
- Medical dispensary sales: 2.9% state sales tax only — no retail excise
- Local taxes may apply to medical at municipal discretion
- Revenue distribution: BEST education grants, public health, law enforcement, marijuana cash fund
Advertising
- No advertising within 1,000 ft of schools, daycares, playgrounds
- Ads must not target audience where >30% are under 21
- Required statement: 'This product is intended for use by adults 21 years of age or older. Keep out of reach of children.'
- MED licence number required
- Health warnings mandatory in print
- Social media: age-gating; no posts visible to general public on public accounts
Workplace Rules
HB22-1119 Protections (eff. Jan 1, 2022)
- Off-duty protections: Employers may not terminate/refuse to hire based solely on off-duty lawful cannabis use or positive metabolite test
- Does not apply if impaired at work
- Employer must show actual impairment to discipline
- Exceptions: Safety-sensitive positions (CDL, heavy equipment), federal contractors, positions requiring federal background check
- Employees remain prohibited from on-duty use or impairment
Possession & Transactions
Recreational Possession1 oz flower · 8 g concentrate · 800 mg edible THC
1 oz
Flower
8 g
Concentrate
800 mg
Edible THC
6 plants
Home grow
Transactions
- Age: 21+ with valid government-issued photo ID
- Same-day purchase limits: 1 oz per retailer per customer
- Delivery: permitted via licensed retailer delivery service statewide
Product Testing
- Mandatory: potency, pesticides, microbials, heavy metals, residual solvents, mycotoxins, moisture, water activity
- MED-licensed independent testing facilities only
- Label accuracy: ±15% tolerance for THC stated on label
- Track-and-trace via Metrc system — all transfers recorded
Medical Use
Qualifying Conditions
- Cancer, glaucoma, HIV/AIDS, cachexia, seizures, severe nausea, severe pain, spasticity, PTSD
- Autism spectrum disorder (added 2021)
- Any chronic or debilitating disease at physician's discretion
Medical Possession2 oz default · Up to 6 oz with physician recommendation
Programme Rules
- CDPHE registry card — annual renewal required; $25 fee (reduced for qualified patients)
- Patients 18–20 may access medical dispensaries
- Caregivers may serve up to 5 patients
Adult-Use Cannabis
Differences from Medical
- 21+ age; medical allows 18+
- Higher effective tax rate on adult-use (~28%) vs medical (2.9%)
- Delivery available for both recreational and medical
- Home cultivation: both may grow 6 plants (3 mature)
Local Ordinances
- Many rural municipalities opted out of retail sales — home cultivation still permitted statewide
- Denver permits on-site consumption licences (hospitality); Amsterdam-model venues operating
- Municipalities may impose local cannabis business taxes
Penalties
- Public consumption: Civil infraction — $100 fine
- Possession 2–6 oz (adult): Petty offence — $100 + 15 days
- Sale without licence: Class 3–4 Felony — up to $100k + prison
- DUID (≥5 ng/mL THC): Misdemeanour (1st) — jail, fines, licence revocation; Felony on 3rd+