SB 17-273

Senate Bill 17-273 in Colorado changes how tobacco taxes are calculated. Instead of basing the tax on a fixed percentage, it now uses 40% of what manufacturers list as the price for their products, which can be based on invoices or prices to importers and manufacturers. This affects tobacco product distributors who must provide proof of these prices to the Department of Revenue. The bill has been signed into law, meaning that tobacco taxes are now calculated using this new method.

Official Summary

The total tax on tobacco products is 40% of the manufacturer's list price, which is based on a manufacturer's or supplier's invoice price to a distributor. The bill permits a distributor to use the price that the tobacco product is sold to the first importer of record or first manufacturer of record as the manufacturer's list price, if the distributor is able to provide the department of revenue with evidence of this price. (Note: This summary applies to this bill as introduced.)

Votes