Colorado § 39-28.6-103 - Tax levied.

§ 39-28.6-103. Tax levied.

(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(4) Repealed.

Source: L. 2020: Entire article added, (HB 20-1427), ch. 248, p. 1199, § 18, effective January 1, 2021. L. 2023: (4) added, (HB 23-1290), ch. 337, p. 2024, § 5, effective June 2.

Editor's note: Subsection (4)(b) provided for the repeal of subsection (4), effective January 1, 2024, 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 § 39-28-502 (1), as that section existed prior to its repeal on July 1, 2024. (See L. 2023, p. 2024). The ballot issue specified in § 39-28-502 (1) was referred to the registered electors as Proposition II on November 7, 2023. It was approved by the voters and proclaimed by the Governor on December 15, 2023, with the following vote count:

FOR: 1,130,047

AGAINST: 543,405

Cross references: For the legislative declaration in HB 23-1290, see section 1 of chapter 337, Session Laws of Colorado 2023.