CIGARETTE TAX REVENUE

Distribution: General Fund 100%

Source: Cigarette smokers in Colorado

Collection: The state imposes and collects a 4.2 cent tax per cigarette, of which 27% of the proceeds are distributed to municipalities and counties according to the ratio of the state sales tax collected in the entity to the total state sales tax collected in the prior year. The state disburses the funds two months after they are collected.

Trend:

• In January 2021, the state legislature raised the cigarette tax to gradually increase to 9.0 cents per cigarette; however, any additional revenue above 4.2 cents is used for special programs and is not part of the distribution to the Town.

• Revenue depends upon the number of smokers and number of cigarettes purchased within the state, in addition to the Town’s proportionate share of state sales tax collections.