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 - Cigarette Tax (§§ 39-28-101 — 39-28-506) › Part 1 - CIGARETTE TAX (§§ 39-28-101 — 39-28-116) › Section 39-28-112 - [Effective 7/1/2025] Taxation of cigarettes, tobacco products, or nicotine products by municipalities, counties, and city and counties - definitions

(1)
This article 28 does not prevent a statutory or home rule municipality, county, or city and county in this state from imposing, levying, and collecting any special sales tax upon sales of cigarettes, tobacco products, or nicotine products, or upon the occupation or privilege of selling cigarettes, tobacco products, or nicotine products, nor does this article 28 affect any existing authority of local governments to impose a special sales tax on cigarettes, tobacco products, and nicotine products to be used for local and governmental purposes.
(2)
(a)
Each county in the state is authorized to levy, collect, enforce, and administer a county special sales tax upon all sales of cigarettes, tobacco products, or nicotine products under the following circumstances:
(I)
A county may levy, collect, enforce, and administer a county special sales tax upon all sales of cigarettes, tobacco products, or nicotine products pursuant to this subsection (2) in the unincorporated areas of the county;
(II)
A county may levy, collect, enforce, and administer a county special sales tax upon all sales of cigarettes, tobacco products, or nicotine products pursuant to this subsection (2) in the municipalities within the boundaries of the county, in whole or in part, that do not levy a municipal special sales tax on the sale of cigarettes, tobacco products, or nicotine products. The county may levy a special sales tax in a municipality pursuant to this subsection (2)(a)(II) only until the municipality obtains voter approval to levy a municipal special sales tax on cigarettes, tobacco products, or nicotine products. If the municipality obtains such voter approval, the county special sales tax authorized by this subsection (2)(a)(II) is invalid within the corporate limits of the municipality unless the county enters into an intergovernmental agreement with the municipality pursuant to subsection (2)(a)(III) of this section that authorizes the county to continue to levy, collect, enforce, and administer the special sales tax on cigarettes, tobacco products, or nicotine products within the corporate limits of the municipality.
(III)
A county may levy, collect, enforce, and administer a county special sales tax upon all sales of cigarettes, tobacco products, or nicotine products pursuant to this subsection (2) in each municipality within the boundaries of the county, in whole or in part, that levies a municipal special sales tax on the sale of cigarettes, tobacco products, or nicotine products, if the governing body of the county and the governing body of the municipality enter into an intergovernmental agreement pertaining to the county's levy, collection, enforcement, and administration of a county special sales tax upon all sales of all cigarettes, tobacco products, or nicotine products within the corporate limits of the municipality. An intergovernmental agreement pursuant to this subsection (2)(a)(III) may include a provision for the apportionment of a specified percentage of the gross county cigarettes, tobacco products, or nicotine products special sales tax revenue collected by the county to the municipality.
(b)
Notwithstanding section
29-2-103 (2)
, a county may levy, collect, enforce, and administer a special sales tax pursuant to this subsection (2) in less than the entire county when the county satisfies one or more of the conditions of this subsection (2).
(c)
No special sales tax shall be levied pursuant to this subsection (2) until the proposal has been referred to and approved by the eligible electors of the county in accordance with part 1 of article 2 of title 29. Any proposal for the levy of a special sales tax in accordance with this subsection (2) shall be submitted to the eligible electors of the county only on the date of the state general election or on the first Tuesday in November of an odd-numbered year. Any election on the proposal must be conducted by the county clerk and recorder in accordance with the "Uniform Election Code of 1992", articles
1
to
13
of title
1
.
(3)
If a county levies, collects, enforces, and administers a special sales tax in a municipality that has already obtained voter approval to levy a municipal special sales tax on the sale of cigarettes, tobacco products, or nicotine products, the county special sales tax is invalid within the corporate limits of the municipality unless the county enters into an intergovernmental agreement with the municipality pursuant to subsection (2)(a)(III) of this section that authorizes the county to continue to levy, collect, enforce, and administer the special sales tax on cigarettes, tobacco products, or nicotine products within the corporate limits of the municipality.
(4)
(a)
Each municipality in the state is authorized to levy, collect, enforce, and administer a municipal special sales tax upon all sales of cigarettes, tobacco products, or nicotine products.
(b)
A special sales tax shall not be levied pursuant to subsection (4)(a) of this section until the proposal has been referred to and approved by the eligible electors of the municipality in accordance with article
10
of title
31
. Any proposal for the levy of a special sales tax in accordance with subsection (4)(a) of this section must be submitted to the eligible electors of the municipality on the date of the state general election, on the first Tuesday in November of an odd-numbered year, or on the date of a municipal biennial election. Any election on the proposal must be conducted by the clerk of the municipality in accordance with the "Colorado Municipal Election Code of 1965", article
10
of title
31
.
(5)
If a county or municipality obtained approval from the eligible electors of the county or municipality prior to July 1, 2019, to levy, collect, enforce, and administer a special sales tax on the sale of cigarettes, tobacco products, or nicotine products, the special sales tax is valid and the county or municipality is authorized to continue to levy, collect, enforce, and administer the special sales tax; except that, in the case of a county, the county is authorized to continue to levy, collect, enforce, and administer the special sales tax so long as the county complies with subsection (2) of this section. If a county levies, collects, enforces, and administers a special sales tax in a municipality that has already obtained voter approval to levy a municipal special sales tax on the sale of cigarettes, tobacco products, or nicotine products, the county special sales tax is invalid within the corporate limits of the municipality unless the county enters into an intergovernmental agreement with the municipality pursuant to subsection (3) of this section that authorizes the county to continue to levy, collect, enforce, and administer the special sales tax on cigarettes, tobacco products, or nicotine products within the corporate limits of the municipality.
(6)
(a)
Notwithstanding article
2
of title
29
, a special sales tax imposed by a county or municipality pursuant to this section shall not be collected, administered, or enforced by the department of revenue, but shall instead be collected, administered, and enforced by the county or municipality imposing the special sales tax.
(b)
A county or municipality in which a special sales tax is imposed pursuant to this section may authorize a retailer selling cigarettes, tobacco products, or nicotine products to retain a percentage of the special sales tax collected pursuant to this section to cover the expenses of collecting and remitting the special sales tax to the county or municipality. The county or municipality shall determine the percentage that a retailer may retain pursuant to this subsection (6)(b).
(7)
A county or municipality in which the eligible electors have approved a special sales tax pursuant to this section may credit the revenues collected from the special sales tax to the general fund of the county or municipality or to any special fund created in the county's or municipality's treasury. The governing body of a county or municipality may use revenues collected from the special sales tax imposed pursuant to this section for any purpose as determined by the governing body.
(8)
As used in this section, unless the context otherwise requires:
(a)
"Cigarettes, tobacco products, or nicotine products" has the same meaning as set forth in section
18-13-121 (5)
.
(b)
"Special sales tax" means a sales tax imposed by a local government that is separate from a general sales tax imposed pursuant to section
29-2-102
or
29-2-103
, as applicable, and may be imposed in addition to the taxes imposed pursuant to this part 1.
Amended by 2024 Ch. 144,§ 51, eff. 7/1/2025, app. to any taxable event occurring on or after 7/1/2025.
Amended by 2019 Ch. 53, § 6, eff. 7/1/2019.
L. 64: p. 825, § 13. C.R.S. 1963: § 138-8-13. L. 2019: Entire section amended, (HB 19 -1033), ch. 186, p. 186, § 6, effective July 1.
2024 Ch. 144, was passed without a safety clause. See Colo. Const. art. V, § 1(3).
This section is set out more than once due to postponed, multiple, or conflicting amendments.