Wednesday, October 19, 2016

Amendment 72 – Increase Tobacco Taxes

In 2004 Colorado voters approved Initiative 35 which put tobacco taxes in the constitution in Article X, Section 21, Tobacco Taxes for Health Related Purposes. Amendment 72 would add subsection (10) to this section. It would impose additional cigarette and tobacco taxes, earmarking all of the new revenue according to specific percentages for a whole host of various health-related purposes. The language in the proposed subsection (10), while modeled after the current language in subsections (1) through (9), contains even more words.

The state portion of the cigarette tax would increase from $0.84 to $2.59 for a pack of 20 cigarettes. E-cigarettes are not taxed under current law nor are they included in Amendment 72.

Recommendation: leaning yes/for

I agree with opponents that tobacco taxes shouldn’t be enshrined in the constitution. Nor do I like the earmarking, especially when the state’s general operating fund could use the revenue and needs more flexibility. However, tobacco taxes are already in the constitution. What we should do is have an amendment to take the tobacco taxes out of the constitution and put them only in statutory law. Given a tight state budget for the foreseeable future, I don’t think the legislature would reduce statutory tobacco taxes unless the state found some ongoing revenue windfall.

In general, I don’t have a problem with increasing “sin” taxes. Prop AA, passed in 2013, imposed a 15% excise tax and a 10% state sales tax on marijuana with the option for the General Assembly to raise the state sales tax up to 15%. Cigarette tax rates will easily outpace marijuana tax rates if Amendment 72 passes – and the situation will stay that way until another constitutional amendment changes it. Colorado will also go from one of the lower cigarette tax rates in the nation to one of the higher.

Website for the Yes Side (Campaign for a Healthy Colorado)
http://www.healthyco2016.com/

Website for the No Side (No Blank Checks in the Constitution)
http://www.noonamendment72.com/
supplementary https://tobaccoissues.com/colorado-amendment-72/


Approved Ballot Language

Amendment 72 (CONSTITUTIONAL)

Shall state taxes be increased $315.7 million annually by an amendment to the Colorado Constitution increasing tobacco taxes, and, in connection therewith, beginning January 1, 2017, increasing taxes on cigarettes by 8.75 cents per cigarette ($1.75 per pack of 20 cigarettes) and on other tobacco products by 22 percent of the manufacturer's list price; and allocating specified percentages of the new tobacco tax revenue to health-related programs and tobacco education, prevention, and cessation programs currently funded by existing constitutional tobacco taxes; and also allocating new revenue for tobacco-related health research, veterans' programs, child and adolescent behavioral health, construction and technology improvements for qualified health providers, educational loan repayment for health professionals in rural and underserved areas, and health professional training tracks?

YES/FOR _______
NO/AGAINST _________

Amendment 72 initiative language filed with the Secretary of State
http://www.sos.state.co.us/pubs/elections/Initiatives/titleBoard/filings/2015-2016/143Final.pdf

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