Colorado lawmakers consider raising taxes and fees on alcohol and marijuana

With Colorado's state budget in the hole by more than $850 million, some lawmakers are looking for new ways to raise revenue.

Democrats have introduced bills that would increase taxes and fees on alcohol and marijuana by tens of millions of dollars a year.
Under House Bill 26-1301, the money would fund construction and operation of a Mental Health Institute in Aurora.

The facility would have 50-70 beds and provide treatment for people who are committed to a state institution or ordered to receive treatment for substance use disorder.

The bill, which will get its first hearing Wednesday in front of the House Health and Human Services Committee, would generate about $63 million a year from increased taxes on alcohol and marijuana.

If it passes, it will need voter approval.

Another measure -- House Bill 26-1271 -- would impose fees on beer, wine, and spirits to the tune of about $30 million a year.

The money would go into three enterprises to fund alcohol prevention, treatment, and recovery.

"This is a way for the alcohol industry to try and rectify some of the harms caused by their products. It's really a balance right now because these costs are born by taxpayers instead of the actual industry," said state Rep. Jamie Jackson, a sponsor of the bill.

The owners of breweries, wineries and distilleries testified against the bill Tuesday, saying they already pay $60 million a year in alcohol taxes.

"We are definitely sympathetic with the sponsors' commitment to addiction recovery, however we should also point out that beer already contributes a substantial amount of excise tax to the state's general fund and so we're just asking them to consider that along with all the other added costs that breweries are going through while sales are declining as well," said Shawnee Adelson, Executive Director of the Colorado Brewers Guild.

Adelson says Colorado has lost hundreds of breweries, wineries and distilleries over the last five years and the bill would cause more to close.

The House Health and Human Services Committee killed the bill in part due to concerns about job losses.