2023 Colorado Revised Statutes › Title 39 - TAXATION (§§ 39-1-101 — 39-37-301) › SPECIFIC TAXES (§§ 39-20-101 — 39-37-301) › TOBACCO TAX (§§ 39-28-101 — 39-28.6-112) › Article 28.6 - Nicotine Products Tax (§§ 39-28.6-101 — 39-28.6-112) › Section 39-28.6-103 - Tax levied - repeal

(1)
There is levied a tax upon the sale, use, consumption, handling, or distribution of all nicotine products in this state, excluding nicotine products that are modified risk tobacco products, at the rate of:
(a)
Thirty percent of the manufacturer's list price of the nicotine products for the tax levied on and after January 1, 2021, but prior to January 1, 2022;
(b)
Thirty-five percent of the manufacturer's list price of the nicotine products for the tax levied on and after January 1, 2022, but prior to January 1, 2023;
(c)
Fifty percent of the manufacturer's list price of the nicotine products for the tax levied on and after January 1, 2023, but prior to July 1, 2024;
(d)
Fifty-six percent of the manufacturer's list price of the nicotine products for the tax levied on and after July 1, 2024, but prior to July 1, 2027; and
(e)
Sixty-two percent of the manufacturer's list price of the nicotine products for the tax levied on and after July 1, 2027.
(2)
There is levied a tax upon the sale, use, consumption, handling, or distribution of nicotine products that are modified risk tobacco products in this state at the rate of:
(a)
Fifteen percent of the manufacturer's list price of the nicotine products for the tax levied on and after January 1, 2021, but prior to January 1, 2022;
(b)
Seventeen and one-half percent of the manufacturer's list price of the nicotine products for the tax levied on and after January 1, 2022, but prior to January 1, 2023;
(c)
Twenty-five percent of the manufacturer's list price of the nicotine products for the tax levied on and after January 1, 2023, but prior to July 1, 2024;
(d)
Twenty-eight percent of the manufacturer's list price of the nicotine products for the tax levied on and after July 1, 2024, but prior to July 1, 2027; and
(e)
Thirty-one percent of the manufacturer's list price of the nicotine products for the tax levied on and after July 1, 2027.
(3)
The tax set forth in this section is collected by the department and is imposed at the time the distributor:
(a)
Brings, or causes to be brought, into this state from without the state nicotine products for sale;
(b)
Makes, manufactures, or fabricates nicotine products in this state for sale in this state;
(c)
Ships or transports nicotine products to retailers in this state to be sold by those retailers; or
(d)
Makes a delivery sale.
(4)
(a)
If a majority of the electors voting in the November 7, 2023, election vote "No/Against" the ballot issue referred to the voters pursuant to section
39-28-502 (1)
, the rates of the tax imposed by this section are reduced as specified in section
39-28-505 (1)
and in accordance with section 20 (3)(c) of article X of the state constitution.
(b)
If a majority of the electors voting in the November 7, 2023, election vote "Yes/For" the ballot issue referred to the voters pursuant to section
39-28-502 (1)
, this subsection (4) is repealed, effective January 1, 2024.
Amended by 2023 Ch. 337,§ 5, eff. 6/2/2023 (approved by voters in 11/7/2023 election).
Added by 2020 Ch. 248, § 18, as passed by voters in the 11/3/2020 election in Proposition EE, eff. 1/1/2021.
L. 2020: Entire article added, (HB 20-1427), ch. 1199, p. 1199, § 18, effective 1/1/2021.