Senators Fields and Priola, bill sponsors,
presented House Bill 19-1033 and distributed a packet of letters (Attachment
C). The bill makes several changes related to the regulation of cigarettes,
nicotine products, and tobacco products (nicotine products) by local governments.
Local regulation of sale to and possession
by minors. Under current law, a municipality may enact an ordinance
or resolution that prohibits a minor from purchasing nicotine products
or that imposes requirements around providing those products to minors
that are more stringent than the state. The bill allows counties to enact
similar policies. Counties may also enact policies that regulate the possession
and purchase by, and sale of nicotine products to minors under the age
Distribution of state cigarette tax
revenue. Under current law, the Department of Revenue distributes
27 percent of state cigarette tax revenues to municipalities and counties
in proportion to the amount of state sales tax revenue collected within
each jurisdiction. In order to receive its distribution of cigarette tax
revenue, local governments cannot impose or attempt to impose fees, licenses,
or taxes on people selling cigarettes. The bill removes this condition,
thus allowing local governments to impose fees, licenses, and taxes on
cigarette sales without losing their portion of state cigarette tax revenue.
Local governments that have imposed tax or regulation on cigarette sales
are eligible to receive their portion of revenue beginning on the effective
date of the bill.
Special sales taxes. The bill
permits counties to levy, collect, and enforce a county special sales tax
on nicotine products, if approved by voters. The special sales tax may
only be imposed in unincorporated areas and cities within the county that
do not levy a municipal special sales tax.
If a municipality imposes or decides
to impose special sales tax on nicotine products, the county special sales
tax is invalid; however, the county and municipality may enter into an
intergovernmental agreement specifying the county's levy, collection, and
enforcement of the county special sales tax within the municipality.
Special sales taxes on cigarette, tobacco
products, and nicotine products that are imposed by a county or municipality
are collected and administered by the entity imposing the tax, not the
Department of Revenue. The municipality or county imposing the tax may
allow retailers to retain a percentage of the tax to cover the cost of
collecting and remitting the tax.
In addition, the bill clarifies that
statutory and home-rule municipalities and counties have the same authority
to tax and regulate cigarette, tobacco, and nicotine products.