Tax levied.

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[Editor's note: This section takes effect only if a ballot issue is approved by the people at the next regular general election in November 2020. See the editor's note following the article heading.] (1) There is levied a tax upon the sale, use, consumption, handling, or distribution of all nicotine products in this state, excluding nicotine products that are modified risk tobacco products, at the rate of:

  1. Thirty percent of the manufacturer's list price of the nicotine products for the taxlevied on and after January 1, 2021, but prior to January 1, 2022;

  2. Thirty-five percent of the manufacturer's list price of the nicotine products for the taxlevied on and after January 1, 2022, but prior to January 1, 2023;

  3. Fifty percent of the manufacturer's list price of the nicotine products for the tax levied on and after January 1, 2023, but prior to July 1, 2024;

  4. Fifty-six percent of the manufacturer's list price of the nicotine products for the taxlevied on and after July 1, 2024, but prior to July 1, 2027; and

  5. Sixty-two percent of the manufacturer's list price of the nicotine products for the taxlevied on and after July 1, 2027.

(2) There is levied a tax upon the sale, use, consumption, handling, or distribution of nicotine products that are modified risk tobacco products in this state at the rate of:

  1. Fifteen percent of the manufacturer's list price of the nicotine products for the taxlevied on and after January 1, 2021, but prior to January 1, 2022;

  2. Seventeen and one-half percent of the manufacturer's list price of the nicotine products for the tax levied on and after January 1, 2022, but prior to January 1, 2023;

  3. Twenty-five percent of the manufacturer's list price of the nicotine products for thetax levied on and after January 1, 2023, but prior to July 1, 2024;

  4. Twenty-eight percent of the manufacturer's list price of the nicotine products for thetax levied on and after July 1, 2024, but prior to July 1, 2027; and

  5. Thirty-one percent of the manufacturer's list price of the nicotine products for the taxlevied on and after July 1, 2027.

(3) The tax set forth in this section is collected by the department and is imposed at the time the distributor:

  1. Brings, or causes to be brought, into this state from without the state nicotine products for sale;

  2. Makes, manufactures, or fabricates nicotine products in this state for sale in thisstate;

  3. Ships or transports nicotine products to retailers in this state to be sold by thoseretailers; or

  4. Makes a delivery sale.

Source: L. 2020: Entire article added, (HB 20-1427), ch. 248, p. 1199, § 18, effective (see editor's note).


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