Colorado Bill Would Put Vapor and Cigarette Tax Increases on Ballot

Colorado voters did approve a cigarette tax back in 2004, one of the few successful statewide tax increases since the advent of the Taxpayer’s Bill of Rights in 1992.

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The cigarette tax is levied on the sale of cigarettes by wholesalers and is assessed at a fixed amount on each single cigarette sold. The cigarette tax has two components. The first, enacted in 1964, is a tax of 1 per cigarette. 1 In 2004, voters approved an additional 3.2 tax per cigarette with the passage of Amendment 35.

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Evidence suggests that tobacco tax increases deters smoking. Following Colorado’s last tobacco tax increase in 2005, the state’s adult smoking rate decreased by four percentage points over five years. But Amendment 72 has a notable exclusion: electronic vapor products, or e-cigarettes.

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It would also increase the tax on tobacco by 22 percent of the wholesale price and raise the tax on cigarettes to 8.75 cents per cigarette. Voters in the state have to approve the tax increases as required by the Taxpayer’s Bill of Rights. If the bill passes, the question would go on the ballot in November.

California’s Proposition 56 will increase taxes on a pack of cigarettes from 87 cents to $2.87, bringing it more in line with other states. The measure also sets a tax on electronic cigarettes.

The legislation would ask voters in November to raise the tax on a pack of cigarettes to $2.49 from 84 cents and set a standard 62% tax on all nicotine products, including vaping fuel for the first time.

The tax increase would price a pack of cigarettes at $8.24 in Colorado. The Campaign for a Healthy Colorado says it should know if its initiative will make the November ballot by the end of August.

The revenue would fund health care programs, expanded preschool and after-school activities. Sponsored by state rep. yadira caraveo, D-Thornton, and state Sen. Rhonda Fields, D-Aurora, the bill would increase the tax on a pack of cigarettes from 84 cents to $2.59 and raise the tax on other tobacco products from 40% to 62%.

CO – Stop a Vapor Tax (to be decided by ballot initiative)! May 2, 2019 Colorado House Bill 1333 would put a 62% tax on vaping on the ballot during the 2019 statewide election in November.

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