Colorado and Oregon Voters Approve Ballot Questions

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Colorado and Oregon Voters Approve Ballot Questions

The following is a legislative update from the National Association of Tobacco Outlets (NATO)

This week, Colorado and Oregon voters approved measures included on the respective state’s November 3rd general election ballot that increase the taxation of cigarettes, tobacco products, and nicotine products (including vaping products), and, in the case of Colorado, set minimum cigarette prices.  Below is a summary of each state ballot question that voters approved in the Nov. 3, 2020 elections.

Colorado Proposition EE:  According to unofficial vote totals, Proposition EE passed by a margin of 68 percent in favor to 32 percent opposed. Proposition EE contains the following provisions:

  • Increases the cigarette tax to $1.94/pack on January 1, 2021, $2.24/pack on July 1, 2024, and $2.64/pack on July 1, 2027.
  • Increases the tax on cigars, pipe tobacco, and smokeless tobacco to 50% on January 1, 2021, 56 percent on July 1, 2024, and 62 percent on July 1, 2027.
  • Establishes a minimum tax for moist snuff products at $1.48 per 1.2-ounce container as of January 1, 2021, $1.84 per 1.2-ounce container as of July 1, 2024, and $2.26 per 1.2-ounce container as of July 1, 2027.
  • Establishes a new tax on nicotine vapor products of 30 percent on the manufacturer’s list price as of January 1, 2021, 35 percent as of January 1, 2022, 50% as of January 1, 2023, 56 percent as of July 1, 2024, and 62 percent as of July 1, 2027.
  • Sets new tax rates for modified risk tobacco products which are designated by the U.S. Food and Drug Administration as having lower health risks compared to existing products.  The new tax rates are 30% of the manufacturer’s list price as of January 1, 2021, 35 percent as of January 1, 2022, 50 percent as of January 1, 2023, 56 percent as of July 1, 2024, and 62 percent as of July 1, 2027.
  • Sets a minimum price of cigarettes, including all applicable taxes, at $7.00 per pack as of January 1, 2021 and then $7.50 per pack as of July 1, 2024.
  • Assesses on-line sales of cigarettes, tobacco products, and nicotine products from out-of-state sellers to Colorado consumers at the new tax rates listed above.

Oregon Measure 108:  According to unofficial vote totals, Measure 108 passed by a margin of 66 percent in favor to 34 percent opposed. Measure 108 contains the following provisions:

  • Increases the cigarette tax to $3.33 per pack (a $2.00 per pack increase).
  • Establishes a new tax on nicotine vapor products at 65 percent of the wholesale sales price.
  • Impose a tax cap of 65 percent of the wholesale sales price on cigars, not to exceed $1.00 per cigar (a $.50 increase in the tax cap).
  • The new taxes apply to tobacco tax reporting periods beginning January 1, 2021.

For all the latest news from the National Association of Tobacco Outlets (NATO), visit natocentral.org.