Opinion ID: 1162617
Heading Depth: 1
Heading Rank: 6

Heading: cigarette tax ballot initiative

Text: SECTION 8. XX-XX-XXX, Colorado Revised Statutes, 1982 Repl.Vol. as amended, is amended to read: XX-XX-XXX. Disposition of collections. (1)(a)(I) Repealed, L. 86, p. 1111, 10, effective July 1, 1987. (II) Effective July 1, 1987, an amount equal to twenty-seven percent of the gross state cigarette tax shall be apportioned to incorporated cities and incorporated towns which levy taxes and adopt formal budgets and to counties. For the purposes of this section, a city and county shall be considered as a city. The city or town share shall be apportioned according to the percentage of state sales tax revenues collected by the department of revenue in an incorporated city or town as compared to the total state sales tax collections that may be allocated to all political subdivisions in the state; the county share shall be the same as that which the percentage of state sales tax revenues collected in the unincorporated area of the county bears to total state sales tax revenues which may be allocated to all political subdivisions in the state. The department of revenue shall certify to the state treasurer, at least annually, the percentage for allocation to each city, town, and county, and such percentage for allocation so certified shall be applied by said department in all distributions to cities, towns, and counties until change by certification to the state treasurer. In order to qualify for distributions of state income tax moneys, units of local government are prohibited from imposing fees, licenses, or taxes on any person as a condition for engaging in the business of selling cigarettes or from attempting in any manner to impose a tax on cigarettes. For purposes of this paragraph (a), the gross state cigarette tax means the total tax before the discount provided for in section 39-28-104(1). (b) Following apportionment of the city, town, and county shares pursuant to paragraph (a) of this subsection (1) and pursuant to section 29-21-101, C.R.S. 1973, all remaining funds shall be credited to the general fund, and the general assembly shall make appropriations therefrom for the expenses of the administration of this article. (c) Distribution to each city, town, and county shall be made monthly, no later than the fifteenth day of the second successive month after the month for which cigarette tax collections are made, commencing in October, 1973. (d) Each city, town, and county, upon request and at reasonable times, shall be entitled to verify with the executive director or his designated representative the proceeds to which the local government is entitled pursuant to the provisions of this section. (e) Where, prior to July 1, 1973, a city or town has pledged the proceeds of all or a portion of its local cigarette tax or tax on the occupation of selling cigarettes for the payment of bonds or other obligations, the city or town shall pledge or place in trust an equivalent amount from its share of the proceeds of the state cigarette tax for the payment of such bonds or other obligations. (f) Commencing January 1, 1978, in order to replace any loss of revenue to the old age pension fund, the department of revenue shall certify to the state treasurer an amount equal to the sum accurately estimated for revenue loss to the old age pension fund from amendments made to section 39-23-113(2)(a), and such amount shall be credited to the old age pension fund. (2) EFFECTIVE 30 DAYS FOLLOWING OFFICIAL DECLARATION OF ITS PASSAGE, SECTION 39-22-623(1)(a)(II) SHALL BE AMENDED SUCH THAT THE TWENTY-SEVEN PERCENT OF GROSS STATE CIGARETTE TAXES APPORTIONED TO INCORPORATED CITIES AND INCORPORATED TOWNS SHALL NOT INCLUDE THE ADDITIONAL TAX OF 10 MILL PER CIGARETTE AND TWENTY-EIGHT CENTS PER OUNCE ON ALL OTHER TOBACCO PRODUCTS AS SET FORTH IN SECTION 39-28-103(2). THE DISPOSITION OF THESE COLLECTIONS SHALL BE AS SET FORTH IN SECTION 39-28-110(2)(a)(b)(c) AND (d). NOTWITHSTANDING ANY PROVISIONS IN SECTION 39-22-623 OR XX-XX-XXX TO THE CONTRARY AND IN ORDER TO HOLD SUCH LOCAL GOVERNMENTS HARMLESS, IF TOTAL REVENUES APPORTIONED TO INCORPORATED CITIES AND INCORPORATED TOWNS AND COUNTIES IN ANY FISCAL YEAR FROM THE APPORTIONMENT IN SECTION 39-22-623 ARE LESS THAN THE TOTAL REVENUES APPORTIONED TO SUCH LOCAL GOVERNMENTS IN THE STATE FISCAL YEAR ENDING JUNE 30, 1988, THE DIFFERENCE SHALL BE DISTRIBUTED FROM REVENUES AVAILABLE PURSUANT TO SUBSECTION 39-28-110(2) TO SUCH LOCAL GOVERNMENTS WITHIN THIRTY DAYS OF THE CLOSE OF THE APPLICABLE STATE FISCAL YEAR. SECTION 13. XX-XX-XXX, Colorado Revised Statutes, 1982 Repl.Vol., is amended to read: XX-XX-XXX. Tobacco products tax levied. (1) There is levied and shall be collected and paid to the department a tax upon the sale of cigarettes by wholesalers of ten mills on each cigarette. (2) NOTWITHSTANDING THE TEN MILL RATE PROVISIONS OF PARAGRAPH (1) COMMENCING 30 DAYS FOLLOWING OFFICIAL DECLARATION OF PASSAGE OF THESE AMENDMENTS, THE RATE OF TAX IMPOSED PURSUANT TO THIS PARAGRAPH (1) SHALL BE TWENTY MILLS ON EACH CIGARETTE AND THE RATE OF TAX ON ALL OTHER TOBACCO PRODUCTS AS DEFINED IN ARTICLE 28.5 SHALL BE INCREASED TWENTY-EIGHT CENTS PER OUNCE. SECTION 20. XX-XX-XXX, Colorado Revised Statutes, 1982 Repl.Vol., is amended to read: XX-XX-XXX. Distribution of tax collected. (1) All sums of money received and collected in payment of the tax imposed by the provisions of this article, except license fees received under section 39-28-102, shall be transmitted to the state treasurer who shall distribute such money as follows: Fifteen percent to the general fund; and eighty-five percent to the old age pension fund. (2) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (1), THE AMOUNT EQUAL TO REVENUES ATTRIBUTABLE TO THE ADDITIONAL TEN MILL IMPOSED ON CIGARETTES AND 28¢ PER OUNCE ON ALL OTHER TOBACCO PRODUCTS IN SECTION 39-28-103(2) SHALL BE USED AS FOLLOWS: (a) AN AMOUNT EQUAL TO NINETY-FIVE PERCENT (95%) OF THE REVENUES GENERATED BY SECTION 39-28-103(2) SHALL BE RESTRICTED FOR USE AS FUNDING FOR PROGRAMS TO PROVIDE HEALTH CARE FOR THE MEDICALLY INDIGENT. THIS SUPPLEMENTATION SHALL BE IN ADDITION TO AND INDEPENDENT FROM ANY FUNDS CURRENTLY ALLOCATED FOR PROGRAMS TO PROVIDE HEALTH CARE FOR THE MEDICAL INDIGENT ESTABLISHED PURSUANT TO ARTICLE 15 OF TITLE 26, C.R.S. ADMINISTRATION OF TAX REVENUES GENERATED PURSUANT TO XX-XX-XXX(2) SHALL BE ACCORDING TO THE METHOD USED FOR CURRENT ADMINISTRATION OF MEDICAL INDIGENT FUNDING. SECTIONS 39-28-103(2) AND XX-XX-XXX(2)(a) AND (b) SHALL NOT BE AFFECTED BY THE EXPIRATION OR MODIFICATION OF ARTICLE 15 OF TITLE 26, C.R.S. (b) AN AMOUNT EQUAL TO FIVE PERCENT (5%) OF THE REVENUES GENERATED BY SECTION 39-28-103(2) SHALL BE PLACED IN A SPECIAL FUND WHICH SHALL PROVIDE SUPPORT FOR PREVENTION, EDUCATION AND RESEARCH PROGRAMS IN ACTIVE AND PASSIVE SMOKING RELATED DISEASES OF HEART, LUNG AND CANCER. THE ADMINISTRATION AND METHOD OF ALLOCATION FOR THESE FUNDS IN XX-XX-XXX(2)(b) SHALL BE DETERMINED BY A SEVEN PERSON SPECIAL COMMISSION TO BE APPOINTED BY THE GOVERNOR OF COLORADO. THE COMMISSION SHALL BE COMPOSED OF INDIVIDUALS WITH INTEREST AND BACKGROUND IN PREVENTION, EDUCATION AND RESEARCH IN SMOKING-RELATED DISEASES OF THE HEART, LUNG AND CANCER. (c) ALL MONEYS SHALL BE CONTINUOUSLY APPROPRIATED AS REVENUES ARE RECEIVED. (d) THE DISTRIBUTION OF TAX AS SET FORTH IN ARTICLE 39-28-110(2)(a)(b) AND (c) SHALL COMMENCE 30 DAYS FOLLOWING OFFICIAL DECLARATION OF PASSAGE OF THESE AMENDMENTS. (3) DISTRIBUTION OF THE ADDITIONAL 10 MILL PER CIGARETTE TAX AND ADDITIONAL 28¢ PER OUNCE TAX ON TOBACCO PRODUCTS AS AMENDED IN XX-XX-XXX(2) SHALL BE ACCORDING TO THE ALLOCATION FORMULA AS AMENDED IN XX-XX-XXX(2)(a)(b)(c) AND (d) AND SHALL NOT BE ACCORDING TO SECTION 39-22-623.