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Here's a thread on Proposition EE that's on Colorado's ballot this year. It's the question about raising tobacco taxes. We've been digging into it for months. Here's my latest story:
https://coloradosun.com/2020/10/13/proposition-ee-modified-risk-tobacco-products/ #copolitics #coleg
https://coloradosun.com/2020/10/13/proposition-ee-modified-risk-tobacco-products/ #copolitics #coleg
House Bill 1427, which lawmakers passed to put Proposition EE on the ballot, was introduced in the final days of the legislative session. It was a massive piece of tax policy. Some legislators and journalists (me) complained it was dropped too fast for a thorough vetting.
The bill came out of nowhere and was introduced on the day before the lawmaking term was *supposed* to end. Legislation needs at least three days to pass, so the legislative session was extended a few more days to accommodate the measure and a few others. #copolitics
After the bill was introduced, we found out that it was negotiated behind the scenes between Democratic lawmakers, Gov. Jared Polis' office, health advocacy groups and the international tobacco giant Altria. #copolitics
Altria, which for years has fought cigarette and tobacco tax increases in Colorado, was suddenly neutral, which raised a lot of eyebrows.
The legislation passed mostly along party lines.
The legislation passed mostly along party lines.
A few months later, we found out about a "minimum-price" provision in the bill, which requires that -- if Proposition EE passes -- a pack of cigarettes be sold for no less than $7 and a carton for no less than $70 starting next year.
Discount cigarette brands complained that would effectively hand Altria, which makes Marlboro, the market share in Colorado.
One company, Liggett Group, is even preparing a lawsuit: https://coloradosun.com/2020/08/13/colorado-tobacco-tax-hike-1427/
One company, Liggett Group, is even preparing a lawsuit: https://coloradosun.com/2020/08/13/colorado-tobacco-tax-hike-1427/
Then, a few weeks ago, I learned that Proposition EE would actually **reduce** taxes on a certain subset of tobacco products, called "modified-risk tobacco products."
There are only 12 products with that designation in the U.S. Altria is behind four of them.
There are only 12 products with that designation in the U.S. Altria is behind four of them.
The MRTP products made by Altria are part of its IQOS system, which the company sees as its future. It's a cross between a traditional cigarette and a vaping device.
Since Liggett has threatened to sue, state lawmakers won't discuss the bill that put Proposition EE on the ballot with me. So I can't tell you why they made these policy choices.
But I can tell you that in 2017, Altria dropped more than $16 million to successfully fight a cigarette tax increase in Colorado. This year, they haven't spent a penny in the Proposition EE battle. #copolitics (end)
