Colorado Voters Approve Tax Increase, New Taxes On Tobacco And Nicotine
The measure was part of HB20-1427
Colorado voters approved sweeping new taxes on nicotine and tobacco products that are expected to raise hundreds of millions of dollars for the state and significantly raise the price of cigarettes and other tobacco and vaping products.
The Associated Press called the race around 8:45 p.m. Tuesday, with 69% of Coloradans voting in favor of Proposition EE’s passage, compared to 31% who voted against it.
The measure was referred to Colorado voters by state lawmakers as part of HB20-1427 as the state tries to address its high teen vaping rates and other tobacco and nicotine use.
Proposition EE’s approval will create a new tax for nicotine and vaping products and increase existing taxes on cigarettes and other tobacco products, which Legislative Council Staff estimated would raise around $250 million in revenue this fiscal year and next.
A pack of cigarettes will go from being taxed at $0.84 per pack up to $2.64 per pack by 2027, when cigarettes will cost at least $7 per pack in the state.
Tobacco products will see the current 40% tax rate increase to 62% by that year, and the new nicotine tax will be applied at 30% starting in 2021 and go up to 56% starting in July 2024.
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