Colorado House Bill HB20-1427

Cigarette Tobacco And Nicotine Products Tax

This new taxation of nicotine products in Colorado is beneficial to preschools because the tax revenue will be transferred to the preschool programs cash fund as well as to the newly created rural schools cash fund, which will in turn be distributed to small and large rural school districts based on funded pupil counts.

Bill Text/Summary:

Concerning the taxation of products that contain nicotine, and, in connection therewith, incrementally increasing the cigarette tax and the tobacco products tax; expanding both of these taxes to apply to sales to consumers from outside of the state; creating an inventory tax that applies when the cigarette tax increases; creating a minimum tax amount for moist snuff tobacco products; creating a tax on nicotine products that is equal to the total tax on tobacco products; establishing new rates for cigarettes, tobacco products, and nicotine products that are modified risk tobacco products that are half of the statutory tax; referring a ballot issue for prior voter approval for the new and increased taxes; and allocating the new tax revenue.

The state treasurer is required to transfer varying amounts of money in different fiscal years from the holding fund to the following funds:

• The tobacco tax cash fund;
• The general fund;
• The housing development grant fund;
• The eviction legal defense fund;
• The newly created rural schools cash fund, which will in turn be distributed to small and large rural school districts based on funded pupil counts; and
• The tobacco education programs fund.

The state auditor is required to annually conduct a financial audit of the use of the new tax revenue.

The primary sponsors

Representative Yadira Caraveo

Representative Julie McCluskie

Senator Rhonda Fields

Senator Dominick Moreno

You can learn more about what is happening in the state of Colorado by visiting our advocacy map.

Resources

• Resource Url:

  https://leg.colorado.gov/bills/hb20-1427