Bill
SB 25-056
Overview: SB 25-056, Reduce Premium Cigar Excise Tax RateStatus: Senate Committee on Finance Postpone IndefinitelyIntroduced: January 17, 2025Purpose and Intent:The bill aims to re
Overview: SB 25-056, Reduce Premium Cigar Excise Tax Rate
Status: Senate Committee on Finance Postpone Indefinitely
Introduced: January 17, 2025
Purpose and Intent:
The bill aims to reduce the excise tax rate on premium cigars sold in Colorado. The current tax rate is 40% of the wholesale price, and the bill proposes lowering it to 15%.
Key Provisions:
- Reduces the excise tax rate on premium cigars from 40% to 15% of the wholesale price
- Defines "premium cigars" as cigars that are hand-rolled, contain a 100% leaf tobacco binder and wrapper, and have a wholesale price of at least $10 per cigar
Affected Parties and Impacts:
The bill would primarily benefit premium cigar retailers and consumers by lowering the tax burden on these products. However, it could result in a decrease in tax revenue for the state, which may impact funding for public health programs or other initiatives.
Procedural and Timeline Considerations:
The bill was introduced in the Senate and referred to the Finance Committee, where it was postponed indefinitely. This effectively ends the bill's progress for the current legislative session.
Compiled from official sources — confirm details with the bill’s official record.
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