Vote Smart's Synopsis:

Vote to pass a bill that establishes a ballot measure concerning the implementation of a tax on tobacco and nicotine products.

Highlights:

• Requires a ballot measure for the election occurring on November 5, 2019, that would do the following if passed (Sec. 1):

• Increase the tobacco tax from 20 percent to 42 percent;

• Impose a tax on nicotine products of 62 percent;

• Increase the cigarette tax by 8.75 cents per cigarette;

• Appropriate 50 percent of the generated revenue to health programs that prevent the use of tobacco and nicotine, and provide mental health services for youth; and

• Appropriate 50 percent of the generated revenue to the Colorado voluntary preschool program, and the Colorado expanded learning opportunities program.

• Decreases the discount percentage on cigarette stamps that a wholesaler may retain from 4 percent to 0.4 percent beginning January 1, 2020 (Sec. 3).

• Decreases the discount percentage on cigarette stamps that a distributor may retain from 3.33 percent to 1.6 percent beginning January 1, 2020 (Sec. 8). 

• Requires any distributor of nicotine products to obtain a license for each place of operation, and applies a $10 fee per-year to each license (Sec. 11). 

• Requires any retailer of nicotine products to keep business records of products purchased (Sec. 11). 

• Authorizes a nicotine products distributor to retain 1.1 percent of the taxes collected (Sec. 11).

• Specifies that this bill does not prevent localities from levying additional special sales tax on cigarettes, tobacco, and nicotine products (Sec. 11). 

• Establishes the Colorado expanded learning opportunities agency to increase out-of-school learning opportunities for students (Sec. 13).

• Specifies that the 50 percent of revenue allocated to early education from tobacco and nicotine taxes will be divided as follows (Sec. 15):

• For the 2019-20 and 2020-21 fiscal years: 35 percent to the preschool programs cash fund and 15 percent to the expanded learning opportunities cash fund;

• For the 2021-22 fiscal year: 30 percent to the preschool programs cash fund and 20 percent to the expanded learning opportunities cash fund; and

• For the 2022-23 fiscal year and after: 27.5 percent to the preschool programs cash fund and 22.5 percent to the expanded learning opportunities cash fund.

• Establishes the behavioral health and health care affordability and accessibility fund in the state treasury, which consists of the remaining 50 percent of the revenue generated from the increased cigarette, tobacco, and nicotine product taxes (Sec. 15).

Full Bill Text