Julie Gonzales voted Yea (Passage With Amendment) on this Legislation.
Title: Increases the Cigarette Tobacco and Nicotine Products Tax
Signed by Governor Jared Polis
Title: Increases the Cigarette Tobacco and Nicotine Products Tax
Vote to concur with senate amendments and pass a bill that increases incrementally the cigarette tax and the tobacco products tax.
Establishes that a referendum will be held on November 3, 2020, that will ask voters to raise taxes on cigarettes and other nicotine products (Sec. 1).
Establishes the following taxations on cigarettes (Sec. 3):
6 and one-half cents per cigarette bought between January 1, 2021, and July 1, 2024;
8 cents per cigarette bought between July 1, 2024, and July 1, 2027; and
10 cents per cigarette bought after July 1, 2027.
Establishes the following taxes on modified-risk tobacco products (Sec. 3):
3 and one-quarter cents per cigarette bought between January 1, 2021, and July 1, 2024;
4 cents per cigarette bought between July 1, 2024, and July 1, 2027; and
5 cents per cigarette bought after July 1, 2027.
Establishes the Tobacco Tax Enforcement Cash Fund within the Treasury Department (Sec. 6).
Establishes that all money received and collected as part of the tax will be divided 15 percent to the general fund and 85 percent to the old-age pension fund (Sec. 8).
Requires that cigarette must cost at least the following prices (Sec. 10):
7 dollars per package of 20 cigarettes and $70 per carton of 200 cigarettes and between January 1, 2021, and July 1, 2024; and
7 dollars and fifty cents per package of 20 cigarettes and $75 per carton of 200 cigarettes after July 1, 2024.
Establishes the following civil penalties for anyone failing to meet these sale requirements within a 5-year period (Sec. 10):
$500 for the first offense;
$1,000 for the second offense; and
$1,500 for the third offense.
Establishes the following taxes on tobacco products (Sec. 12):
20 percent of the manufacturer’s list price before January 1, 2021;
30 percent of the manufacturer’s list price between January 1, 2021, and July 1, 2024;
36 percent of the manufacturer’s list price between July 1, 2024, and July 1, 2027; and
42 percent of the manufacturer’s list price after July 1, 2027.
Establishes the following taxes on modified risk tobacco products (Sec. 12):
15 percent of the manufacturer’s list price between January 1, 2021, and July 1, 2024;
18 percent of the manufacturer’s list price between July 1, 2024, and July 1, 2027; and
21 percent of the manufacturer’s list price after July 1, 2027.
Appropriates tax money to rural public school districts for the next 3 school years under the following margins (Sec. 20):
55 percent for the applicable distribution year to large rural districts; and
45 percent for the applicable distribution year to small rural districts.
Appropriates the following funds to rural public school districts (Sec. 20):
$25 million for the 2020-21 school year;
$30 million for the 2021-22 school year; and
$35 million for the 2022-23 school year.
Establishes that the following taxes become effective after the governor signs a proclamation finalizing the election’s approval, or on January 1, 2021, whichever is later (Sec. 27).
Title: Increases the Cigarette Tobacco and Nicotine Products Tax
Vote to amend and pass a bill that increases incrementally the cigarette tax and the tobacco products tax.
Establishes that a referendum will be held on November 3, 2020, that will ask voters to raise taxes on cigarettes and other nicotine products (Sec. 1).
Establishes the following taxations on cigarettes (Sec. 3):
6 and one-half cents per cigarette bought between January 1, 2021, and July 1, 2024;
8 cents per cigarette bought between July 1, 2024, and July 1, 2027; and
10 cents per cigarette bought after July 1, 2027.
Establishes the following taxes on modified-risk tobacco products (Sec. 3):
3 and one-quarter cents per cigarette bought between January 1, 2021, and July 1, 2024;
4 cents per cigarette bought between July 1, 2024, and July 1, 2027; and
5 cents per cigarette bought after July 1, 2027.
Establishes the Tobacco Tax Enforcement Cash Fund within the Treasury Department (Sec. 6).
Establishes that all money received and collected as part of the tax will be divided 15 percent to the general fund and 85 percent to the old-age pension fund (Sec. 8).
Requires that cigarette must cost at least the following prices (Sec. 10):
7 dollars per package of 20 cigarettes and $70 per carton of 200 cigarettes and between January 1, 2021, and July 1, 2024; and
7 dollars and fifty cents per package of 20 cigarettes and $75 per carton of 200 cigarettes after July 1, 2024.
Establishes the following civil penalties for anyone failing to meet these sale requirements within a 5-year period (Sec. 10):
$500 for the first offense;
$1,000 for the second offense; and
$1,500 for the third offense.
Establishes the following taxes on tobacco products (Sec. 12):
20 percent of the manufacturer’s list price before January 1, 2021;
30 percent of the manufacturer’s list price between January 1, 2021, and July 1, 2024;
36 percent of the manufacturer’s list price between July 1, 2024, and July 1, 2027; and
42 percent of the manufacturer’s list price after July 1, 2027.
Establishes the following taxes on modified risk tobacco products (Sec. 12):
15 percent of the manufacturer’s list price between January 1, 2021, and July 1, 2024;
18 percent of the manufacturer’s list price between July 1, 2024, and July 1, 2027; and
21 percent of the manufacturer’s list price after July 1, 2027.
Appropriates tax money to rural public school districts for the next 3 school years under the following margins (Sec. 20):
55 percent for the applicable distribution year to large rural districts; and
45 percent for the applicable distribution year to small rural districts.
Appropriates the following funds to rural public school districts (Sec. 20):
$25 million for the 2020-21 school year;
$30 million for the 2021-22 school year; and
$35 million for the 2022-23 school year.
Establishes that the following taxes become effective after the governor signs a proclamation finalizing the election’s approval, or on January 1, 2021, whichever is later (Sec. 27).
Title: Increases the Cigarette Tobacco and Nicotine Products Tax
Title: Increases the Cigarette Tobacco and Nicotine Products Tax