Last week, a member of the Colorado state senate sought tax relief for the state’s small business tobacconists and their customers. Although the measure came up a couple of votes short, the case was made as never before.
The Colorado Senate Finance Committee heard testimony on S.B. 102, seeking to limit the state’s tax on premium cigars to 20% of the manufacturer’s list price. It is currently 50%, and under a recent referendum, will rise to 56% and then to 62%.
Senator Tom Sullivan, D-Arapahoe and Douglas stated, “I was pleased to present S.B. 102 for consideration this year, calling for a tax limit of 20% on premium cigars. The bill provides a legislative definition, and recognizes the difference with other tobacco products. It’s about helping Colorado small businesses and making the state competitive. Although we came up up a couple of votes short, I am committed to reintroducing the legislation, and making the case for a better tax policy in future sessions.”
Jimmy Hargrove, Vice President of the Colorado Premium Cigar and Pipe Association and owner of Tobacco Leaf in Lakewood, Colorado, stated, “The hearing was the beginning for seeking tax relief for Colorado small businesses and consumers who have a passion for premium cigars. On behalf of the Colorado Premium Cigar and Pipe Association we want to express our sincere appreciation to Senator Tom Sullivan for sponsoring S.B. 102 calling for tax relief for those that sell and enjoy premium cigars. We also appreciate the support of the Premium Cigar Association during this process. Together, we will work to get our message heard.”
PCA Director of State Advocacy, Glynn Loope, also presented testimony at the hearing making the case for tax fairness noting, “It is clear that Colorado is in need of tax reform for the state’s small businesses and patrons alike. They are surrounded by states with lower rates. Senator Sullivan not only made the case for tax relief as a legislator, but attested to the need personally as a patron of Colorado’s cigar shops. In addition, we addressed the arguments against the bill from the public health perspective, as one senator on the committee called it “laughable” to equate premium cigars to other products. Thanks to Senator Sullivan’s commitment, this is just the beginning.”
The Finance Committee did not advance the bill on a vote of 4-3. The Premium Cigar Association, Colorado Premium Cigar and Pipe Association and other industry allies are committed to seeking tax fairness for the small businesses and consumers of Colorado.