2020 Colorado Proposition EE
Colorado Proposition EE was a legislative referendum that appeared on ballots in Colorado in the November 2020 elections. It was a proposal to increase taxes on nicotine products and place a new tax on vaping products.
Proposal
Proposition EE originates from HB20-1427, a law that would increase taxes on cigarettes and nicotine products. As all tax increases have to be approved by voters under the Colorado Constitution, a Proposition was needed for the law to enter into effect.The Proposition raises taxes on cigarettes and tobacco products, and levies a new tax on nicotine products. Under the proposal, these increases would be phased in between 2021 and 2027, resulting in a tax on cigarettes of $2.64 per pack, a tax on other tobacco products of 62% of the price which they are sold to retailers at and a new tax on nicotine products, also set at 62%. Additionally, the Proposition raised the minimum sale price of various nicotine products.
It is estimated that Proposition EE would generate up to $175.6m extra tax in its first budget year, rising to $275.9m by the time the new rates are fully in place. This would be used to increase funding for free preschool provision as well as being used in rural schools, K-12 education, housing development, and general state spending.