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Reduce Premium Cigar Excise Tax Rate

Concerning the taxation of premium cigars, and, in connection therewith, capping the statutory excise tax on premium cigars at twenty percent.

SB26-086 2026 Regular Session Postponed Indefinitely Fiscal Policy & Taxes Liquor, Tobacco, & Marijuana

Cost estimates

At the first note read
−$1,500,000
FACT February 19, 2026
At the last note read
−$1,500,000
FACT September 21, 2026
What it actually cost
not published
No Colorado source reports spending for one bill

Every figure here is an estimate by Legislative Council Staff on the date shown, about the version of the bill in front of them that day. It is not a cost.

The appropriation

The bill requires money it does not carry — the note says an appropriation is required and does not say the bill includes one.

An appropriation is money the legislature sets aside. It is not money spent.

The appropriation field, read from the note: For FY 2026-27, the bill would have required an appropriation of $53,912 to the Department of Revenue.

Bill 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.)

FACT Bill summary by Colorado Legislative Council Staff, read 2026-09-23. Printed as published, word for word. Source: leg.colorado.gov (opens in a new tab)