Loveland City Council adopts marijuana-tax code update on final reading

The Loveland City Council voted 9-0 Tuesday to adopt Ordinance No. 6840 on second reading, finalizing a municipal code update tied to the city’s voter-approved marijuana taxes. The ordinance amends sections 8.10.140 and 3.16.020 so retail marijuana businesses must collect and remit the city’s marijuana excise tax along with applicable sales tax.

The changes are intended to align city code with Ballot Issue 2F, which voters approved in November 2024. That measure authorized a 5% excise tax on retail marijuana and retail marijuana products sold within Loveland, with revenue estimated at $5 million annually in the first full fiscal year and available for any lawful municipal purpose.

Under Ordinance 6840, section 8.10.140 is rewritten as “Tax on Recreational Marijuana.” It requires each marijuana business to collect and remit city sales tax on retail marijuana, retail marijuana products, paraphernalia and other tangible personal property used or sold within the city. It also requires each retail marijuana business to collect and remit an additional 5% excise tax on the retail sales price of retail marijuana and retail marijuana products sold at the licensed premises.

The ordinance further states that those taxes will be collected, administered and enforced in the same manner as the city’s sales and use tax under Chapter 3.16. Section 3.16.020 is also amended to specify that taxes on retail marijuana and retail marijuana products, including applicable excise taxes, are set out in section 8.10.140.

Council approved the measure as part of the consent agenda, with no separate discussion before the vote. Agenda materials identified it as Item 4.2 and listed Finance Department Sales Tax Manager Dusty Durston as presenter. The ordinance follows earlier voter approval of Ballot Question 2H, which repealed the city’s previous prohibition on marijuana businesses, and a 2025 ordinance codifying marijuana sales in Loveland. The ordinance’s clerk certification lists an effective date of July 21, 2026.