Three years ago Colorado voters approved a ballot initiative that imposed the first-ever state tax on vaping products containing nicotine. The measure was called Proposition EE and the revenue generated was partly to go to preschool programs as well as K-12 education. In the first year after its passage there was more revenue collected than expected, and now over $20 million is set to be refunded to tobacco wholesalers and distributors.
Proposition II stands in the way of that money being refunded. If voters approve the new ballot initiative on Tuesday, the excess revenue would be used to further support Colorado’s preschool program.
Passage of Proposition II would also mean that the state’s current tax rates on nicotine products, cigarettes and tobacco products will be maintained.
The tax collections that resulted from Proposition EE’s passage after that first year exceeded the state Legislative Council’s Blue Book projected revenue. When such a thing happens, under the Colorado’s Taxpayer Bill of Rights (TABOR) overages can’t be retained by the state — they must be refunded, unless voters approve blocking that refund.
If Coloradans vote down Proposition II the tax rates on tobacco products, nicotine products and cigarettes will be reduced.
