Colorado Gov. Jared Polis, D, suffered a defeat last night when his tobacco tax increase proposal was defeated after failing to garner enough support in the state senate.
HB 19-1333 would have created a ballot measure for citizens to vote on whether to increase the tobacco tax from 40 percent to 62 percent of the wholesale prices on other tobacco products including cigars. The measure would have also taxed e-cigarettes for the first time and increased the taxes on cigarettes from 84 cents per pack to $2.59.
In Colorado currently, a cigar that has an MSRP of $9.50 likely costs around $13.30 before any sales tax. If the new tax had passed, the price would have increased to $15.39 per halfwheel estimates.