summary
Introduced
01/17/2025
01/17/2025
In Committee
01/17/2025
01/17/2025
Crossed Over
Passed
Dead
02/04/2025
02/04/2025
Introduced Session
2025 Regular Session
Bill Summary
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.
AI Summary
This bill introduces a new definition and tax rate specifically for premium cigars in Colorado, effective July 1, 2025. A "premium cigar" is defined as a hand-rolled cigar with a whole tobacco leaf wrapper and no filter or mouthpiece. The bill reduces the excise tax on premium cigars from the current rate of 36-42% of the manufacturer's list price (MLP) to a flat 20% of the MLP. This change effectively rolls back tax increases on premium cigars that have been implemented since 2005. The bill does not impact the additional 20% tax on tobacco products imposed by the state constitution. By creating a specific category and lower tax rate for premium cigars, the legislation aims to provide a more favorable tax treatment for this specific type of tobacco product, potentially benefiting premium cigar manufacturers and retailers in Colorado.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
Senate Committee on Finance Postpone Indefinitely (on 02/04/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://leg.colorado.gov/bills/sb25-056 |
| Fiscal Note FN1 | https://leg.colorado.gov/sites/default/files/documents/2025A/bills/fn/2025a_sb056_00.pdf |
| BillText | https://leg.colorado.gov/sites/default/files/documents/2025A/bills/2025a_056_01.pdf |
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