SB 26-86

Senate Bill 26-86 reduces the excise tax on premium cigars in Colorado. Starting July 1, 2024, the tax rate will drop from 36% of the manufacturer's list price to 20%, and it will remain at 20% until June 30, 2027. After that, it will increase slightly but still stay below previous levels. This bill affects cigar manufacturers and consumers who buy premium cigars in Colorado. The status "signed" means the governor has approved the bill, making it law.

Official Summary

Effective July 1, 2026, the bill defines "premium cigar" and reduces the statutory excise taxation rate on premium cigars to 20% of the manufacturer's list price (MLP) from the current rates for all non-cigarette tobacco products other than moist snuff of 36% of the MLP from July 1, 2024, through June 30, 2027, and 42% of the MLP on and after July 1, 2027, 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.)

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