First Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 25-0381.01 Alison Killen x4350
SENATE BILL 25-056
Senate Committees House Committees
Finance
A BILL FOR AN ACT
C
ONCERNING THE TAXATION OF PREMIUM CIGARS , AND, IN101
CONNECTION THEREWITH , CAPPING THE STATUTORY EXCISE TAX102
ON PREMIUM CIGARS AT TWENTY PERCENT .103
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov
.)
Effective July 1, 2025, the bill defines "premium cigar" and
reduces the statutory rate of excise taxation of this particular tobacco
product from the current rates for all non-cigarette tobacco products other
than moist snuff of 36% of the manufacturer's list price (MLP) from July
1, 2024, through June 30, 2027, and 42% of the MLP on and after July 1,
SENATE SPONSORSHIP
Sullivan,
HOUSE SPONSORSHIP
(None),
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law. 2027, to 20% of the MLP, effectively rolling back the increases in the
statutory taxation rate for such tobacco products since 2005. The bill does
not affect taxation of premium cigars under the state constitution, which
imposes an additional 20% tax.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 39-28.5-101, add2
(9.5) as follows:3
39-28.5-101. Definitions. As used in this article 28.5, unless the4
context otherwise requires:5
(9.5) "P
REMIUM CIGAR" MEANS A CIGAR THAT IS ROLLED BY HAND,6
HAS A WRAPPER MADE OF WHOLE TOBACCO LEAVES , AND DOES NOT HAVE7
A FILTER OR A MOUTHPIECE.8
SECTION 2. In Colorado Revised Statutes, 39-28.5-102, amend9
(1) introductory portion; and add (6) as follows:10
39-28.5-102. Tax levied. (1) Except as set forth in subsection (3)
11
SUBSECTIONS (3) AND (6) of this section, there is levied a tax upon the12
sale, use, consumption, handling, or distribution of all tobacco products13
in this state, excluding modified risk tobacco products, at the rate of:14
(6) T
HE TAX IMPOSED UPON THE SALE , USE, CONSUMPTION,15
HANDLING, OR DISTRIBUTION OF PREMIUM CIGARS PURSUANT TO16
SUBSECTION (1) OF THIS SECTION IS TWENTY PERCENT OF THE17
MANUFACTURER'S LIST PRICE OF THE PREMIUM CIGARS.18
SECTION 3. Effective date - applicability. This act takes effect19
July 1, 2025, and applies to the sale, use, consumption, handling, or20
distribution of premium cigars on or after said date.21
SECTION 4. Safety clause. The general assembly finds,22
determines, and declares that this act is necessary for the immediate23
SB25-056-2- preservation of the public peace, health, or safety or for appropriations for1
the support and maintenance of the departments of the state and state2
institutions.3
SB25-056
-3-