SB 25-056

Senate Bill 25-056 reduces the excise tax rate on premium cigars in Colorado. Starting July 1, 2025, the tax will drop from 36% of the manufacturer's list price (MLP) until June 30, 2027, and then to 42% MLP starting July 1, 2027, down to a flat rate of 20% MLP. This change only affects premium cigars and does not alter the additional 20% tax mandated by the state constitution. The bill has been signed into law, meaning it will take effect as planned.

Official Summary

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, 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.(Note: This summary applies to this bill as introduced.)