Colorado Springs Council Overrides Mayor's Veto on Cannabis Tax Ordinance

23 July 2025

The Colorado Springs City Council voted 6-3 to override Mayor Yemi Mobolade’s veto of Ordinance 25-59, a measure that changes how tax revenue from recreational marijuana sales is distributed in the city. This marks the first time Mayor Mobolade, who took office in 2023, exercised his veto authority.

The ordinance doesn’t change who ultimately controls the city’s budget — as that remains with the mayor — but it empowers the City Council to make formal recommendations about how cannabis tax revenues should be spent. It also allows the city to contract with local nonprofit organizations that provide public safety, mental health services, and PTSD treatment for veterans, the only areas the tax revenues are legally permitted to fund.

Council members in favor of the ordinance, say it ensures the revenue is used purposefully and transparently, preventing it from being absorbed into the broader general fund. Proponents of the measure see that it adds accountability and visibility to how cannabis revenues are spent, rather than simply funneling the funds through the traditional budget pipeline.

Opponents, including the mayor and several Councilmembers, argue that the ordinance adds a layer of bureaucracy without truly altering what the council can already do. Mobolade criticized the bill as undermining collaboration and injecting politics into what he views as a historically efficient budget process. With the city facing an $11.5 million shortfall, additional procedural requirements could limit flexibility in prioritizing spending.

Despite the disagreement, both the mayor and City Council hope to return to a more collaborative relationship moving forward. The ordinance’s approval opens the door for nonprofits to play a more formal role in implementing programs funded by cannabis tax dollars — a potential boon for service providers and recipients alike.

For cannabis patients, veterans seeking PTSD treatment, and the broader community of recreational users and stakeholders, this ordinance could lead to more targeted and transparent application of tax revenues. For industry professionals, it offers a glimpse into how cities can structure cannabis revenue distribution through public-private partnerships.