Colorado Looks To Raise Cigar Taxes

Colorado Looks To Raise Cigar Taxes

Residents of Colorado may have a say in whether or not to raise the state’s cigar tax after a pair of lawmakers recently introduced a bill that seeks to put the issue on next November’s ballot.

Rep. Yadira Caraveo and Sen. Rhonda Fields, both Democrats, introduced HB 19-1333 on April 24, which calls for the state to add a ballot initiative to decide if the state should increase taxes on nicotine products such as cigarettes, e-cigarettes and handmade cigars.

The measure, which is supported by Colorado Gov. Jared Polis, would raise the state tax on cigars to 62 percent of the manufacturer’s price. Currently, the state cigar tax is 40 percent of the manufacturer’s price.

In other words, a $10 cigar, which is currently taxed at $4 by the state, would be taxed $6.20 if the voters were to say yes to the bill proposal.