Colorado voters will be asked in Nov. 2023 whether to allow the state to retain revenue above the estimated revenue generated from increased taxes on cigarettes and tobacco and nicotine products established by Proposition EE, which was approved by voters in 2020.
Proposition EE increased cigarette and tobacco product taxes and created a new tax on nicotine products such as e-cigarettes. The 2020 Blue Book (ballot information booklet) estimated $176 million in state revenues to be generated from Proposition EE. Actual revenue from the tax increases exceeded this amount by about $24 million.
The Colorado Taxpayer’s Bill of Rights — also known as TABOR — requires voter approval of increases to the state’s revenue. Because actual revenues generated by Proposition EE exceeded the estimated revenues set out in Proposition EE as approved by voters in 2020, voter approval is required to allow the state to retain the revenue above the estimated revenue.
