A Bill for an Act
Page 1, Line 101Concerning the taxation of premium cigars, and, in
Page 1, Line 102connection therewith, capping the statutory excise tax
Page 1, Line 103on premium cigars at twenty percent.
Bill Summary
(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.)
Effective July 1, 2025, the bill defines "premium cigar" and reduces the statutory rate of excise taxation of this particular tobacco product from the current rates for all non-cigarette tobacco products other than moist snuff of 36% of the manufacturer's list price (MLP) from July 1, 2024, through June 30, 2027, and 42% of the MLP on and after July 1, 2027, to 20% of the MLP, effectively rolling back the increases in the statutory taxation rate for such tobacco products since 2005. The bill does not affect taxation of premium cigars under the state constitution, which imposes an additional 20% tax.
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. In Colorado Revised Statutes, 39-28.5-101, add (9.5) as follows:
Page 2, Line 339-28.5-101. Definitions. As used in this article 28.5, unless the context otherwise requires:
Page 2, Line 4(9.5) "Premium cigar" means a cigar that is rolled by hand,
Page 2, Line 5has a wrapper made of whole tobacco leaves, and does not have a filter or a mouthpiece.
Page 2, Line 6SECTION 2. In Colorado Revised Statutes, 39-28.5-102, amend (1) introductory portion; and add (6) as follows:
Page 2, Line 739-28.5-102. Tax levied. (1) Except as set forth in
subsection (3)Page 2, Line 8subsections (3) and (6) of this section, there is levied a tax upon the
Page 2, Line 9sale, use, consumption, handling, or distribution of all tobacco products in this state, excluding modified risk tobacco products, at the rate of:
Page 2, Line 10(6) The tax imposed upon the sale, use, consumption,
Page 2, Line 11handling, or distribution of premium cigars pursuant to
Page 2, Line 12subsection (1) of this section is twenty percent of the manufacturer's list price of the premium cigars.
Page 2, Line 13SECTION 3. Effective date - applicability. This act takes effect
Page 2, Line 14July 1, 2025, and applies to the sale, use, consumption, handling, or distribution of premium cigars on or after said date.
Page 2, Line 15SECTION 4. Safety clause. The general assembly finds,
Page 2, Line 16determines, and declares that this act is necessary for the immediate
Page 3, Line 1preservation of the public peace, health, or safety or for appropriations for
Page 3, Line 2the support and maintenance of the departments of the state and state institutions.