Sunday, October 20, 2019

City of Boulder 2G - Tax on Tobacco Vaping Products

The Boulder city council has heard from many concerned citizens about youth vaping. In order to reduce youth vaping, the city attempted to ban non-tobacco flavors, but a loophole in the law allows consumers to buy flavor agents which are sold separately from unflavored nicotine. The consumers then do the mixing themselves.

In another attempt to reduce youth vaping, the city is asking voters to approve a sales tax of up to 40% tax on vaping products arguing that youth are particularly price sensitive. Vaping product suppliers complain that Boulder should be taxing traditional cigarettes (aka their competition) too. Vaping advocates like to claim that vaping is better than cigarettes.

The tax would begin on January 1st and any revenue would first go toward administration of the tax and funding programs related to nicotine licensing, enforcement or health education. Remaining funds would go into the city’s general fund.

Recommendation: Yes/For

I’m generally in favor of sin taxes which may discourage harmful behaviors. Boulder does run the risk that consumers will just shop outside the city for vaping products and more, resulting in a loss of tax dollars. Boulder workers who vape may be less inclined to live in Boulder, adding to the in-commuting numbers.

Website for the Yes Side
No known website – Info on a supporters’ website appreciated.

Website for the No Side
No known website – Info on an opponents’ website appreciated.


Approved Ballot Language

City of Boulder Ballot Issue 2G
Tax on Tobacco Vaping Products


Shall City of Boulder taxes be increased two million five hundred thousand dollars (first full fiscal year increase) annually by imposing a sales and use tax of up to 40 percent of the retail sales price of all electronic smoking devices, including any refill, cartridge or component of such a product; the term "electronic smoking device" shall have the meaning as in section 6-4.5-1 of the Boulder Revised Code; and in connection therewith, shall all of the revenues collected be used to fund: the administrative cost of the tax, and thereafter for: implementation and administration of a licensing program for all nicotine product retailers; health promotion; education programs regarding nicotine product use including enforcement; with any remaining funds being available for general government services, including library, police, fire, parks, transportation and general government administration? All effective January 1, 2020, and in connection therewith, shall the full proceeds of such taxes at such rates and any earnings thereon be collected, retained, and spent, as a voter-approved revenue change without limitation or condition, and without limiting the collection, retention, or spending of any other revenues or funds by the City of Boulder under Article X Section 20 of the Colorado Constitution or any other law?

Yes/For _____
No/Against _____

Ordinance No. 8342 to put issue 2G to the voters
https://www-static.bouldercolorado.gov/docs/Ord._No._8342_Vaping_Products_Tax-1-201909051529.pdf?_ga=2.259694602.1609871116.1571366190-2002241055.1571366190

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