Local regulation of sale to and possession by minors. Under current law, a municipality may enact an ordinance or resolution that prohibits a minor from purchasing nicotine products or that imposes requirements around providing those products to minors that are more stringent than the state. The bill allows counties to enact similar policies. Counties may also enact policies that regulate the possession and purchase by, and sale of nicotine products to minors under the age of 21.

Distribution of state cigarette tax revenue.  Under current law, the Department of Revenue distributes 27 percent of state cigarette tax revenues to municipalities and counties in proportion to the amount of state sales tax revenue collected within each jurisdiction. In order to receive its distribution of cigarette tax revenue, local governments cannot impose or attempt to impose fees, licenses, or taxes on people selling cigarettes. The bill removes this condition, thus allowing local governments to impose fees, licenses, and taxes on cigarette sales without losing their portion of state cigarette tax revenue. Local governments that have imposed tax or regulation on cigarette sales are eligible to receive their portion of revenue beginning on the effective date of the bill.

Special sales taxes. The bill permits counties to levy, collect, and enforce a county special sales tax on nicotine products, if approved by voters. The special sales tax may only be imposed in unincorporated areas and cities within the county that do not levy a municipal special sales tax.  

If a municipality imposes or decides to impose special sales tax on nicotine products, the county special sales tax is invalid; however, the county and municipality may enter into an intergovernmental agreement specifying the county's levy, collection, and enforcement of the county special sales tax within the municipality.

Special sales taxes on cigarette, tobacco products, and nicotine products that are imposed by a county or municipality are collected and administered by the entity imposing the tax, not the Department of Revenue. The municipality or county imposing the tax may allow retailers to retain a percentage of the tax to cover the cost of collecting and remitting the tax.

In addition, the bill clarifies that statutory and home-rule municipalities and counties have the same authority to tax and regulate cigarette, tobacco, and nicotine products.

Joyce Baker, representing herself, testified in support of the bill.

Jeanne McQueeney, Eagle County Commissioner, testified in support of the bill.

Grier Baily, Colorado Wyoming Petroleum Marketers Association, testified in opposition to the bill and provided a handout (Attachment D).

Charmaine Brittain, Tobacco Free Jeffco Alliance, testified in support of the bill.