Colorado Proposition II, Tobacco and Nicotine Product Tax Revenue Measure (2023)

Colorado Proposition II
Election date November 7, 2023
Topic Taxes and Tobacco
Status a Approved
Type State statute	Origin State legislature

Colorado Proposition II, the Tobacco and Nicotine Product Tax Revenue Measure, was on the ballot in Colorado as a legislatively referred state statute on November 7, 2023. It was approved.

A "yes" vote supported this ballot measure to: allow the state to keep revenue that exceeds official projections from increased taxes on cigarettes, tobacco, and nicotine products, which voters approved as Proposition EE in 2020; and require the state to spend this revenue on preschool programs.

A "no" vote opposed allowing the state to keep revenue that exceeds official projections from increased taxes on cigarettes, tobacco, and nicotine products (approved by voters as Proposition EE in 2020), thereby requiring the state to refund $23.65 million to tobacco and nicotine product wholesalers and distributors and reducing the tobacco tax rate by 11.53%.

Election results

Colorado Proposition II
Result		Votes	Percentage
Yes		1,130,047	67.53%
No		543,405	32.47%

Results are officially certified.

Source

Overview

What did Proposition II do?

See also: Text of measure

The ballot measure allowed the state to keep and utilize excess revenue ($23.65 million) generated from increased and new tobacco, cigarette, and nicotine taxes approved by voters in 2020 through Proposition EE. If the measure had been rejected by voters, excess revenue would have been refunded to distributors and wholesalers and tax rates set by Proposition EE would have been reduced.

Voter approval of Proposition II allowed the state to keep and use revenue that exceeded the estimated amount generated from those taxes. This additional revenue, which amounted to $23.65 million, was set to be allocated to the state's universal preschool program, the recipient of Proposition EE funds at the time of the election. The tax rates established in Proposition EE were not changed.

If the ballot measure had been rejected, the state would have been required to refund the $23.65 million in excess revenue to tobacco and nicotine product distributors and wholesalers. If the measure had been rejected, the tax rates on tobacco, cigarettes, and nicotine products under Proposition EE would have been reduced by a total of 11.53%.

Why was this measure on the ballot?

See also: Background and Path to the ballot

This measure required voter approval under TABOR since it was designed to increase state revenue by allowing the state to retain more revenue than was initially projected for Proposition EE of 2020.

TABOR limits the amount of money the state of Colorado can take in and spend. It limits the annual increase for some state revenue to inflation plus the percentage change in state population. Any money collected above this limit is refunded to taxpayers unless the voters allow the state to spend it.

To read about the Taxpayer's Bill of Rights, click here.

What was Proposition EE?

See also: Proposition EE, 2020

Proposition EE was referred to voters in 2020, where it was approved by 67.56% of voters. The measure increased cigarette and tobacco product taxes and created a new tax on nicotine products such as e-cigarettes. Proposition EE was expected to generate $176 million in the 2021-22 fiscal year, the first full year that the measure was effective. Actual revenues generated exceeded the projected amount by about $24 million.

Before Proposition EE was adopted, cigarettes were taxed at a statutory rate of 20 cents per pack (one cent per cigarette). Additionally, Amendment 35 of 2004 authorized an additional constitutional tax of 64 cents per pack (3.2 cents per cigarette), for a total state-levied cigarette tax of 84 cents. Proposition EE was designed to incrementally increase the statutory cigarette tax rate to $1.80 per pack by July 2027, thereby increasing the total state-levied cigarette tax to $2.64 per pack.

Text of measure

Ballot title

The ballot question for the measure was as follows:

“

WITHOUT RAISING TAXES, MAY THE STATE RETAIN AND SPEND REVENUES FROM TAXES ON CIGARETTES, TOBACCO, AND OTHER NICOTINE PRODUCTS AND MAINTAIN TAX RATES ON CIGARETTES, TOBACCO, AND OTHER NICOTINE PRODUCTS AND USE THESE REVENUES TO INVEST TWENTY-THREE MILLION SIX HUNDRED FIFTY THOUSAND DOLLARS TO ENHANCE THE VOLUNTARY COLORADO PRESCHOOL PROGRAM AND MAKE IT WIDELY AVAILABLE FOR FREE INSTEAD OF REDUCING THESE TAX RATES AND REFUNDING REVENUES TO CIGARETTE WHOLESALERS, TOBACCO PRODUCT DISTRIBUTORS, NICOTINE PRODUCTS DISTRIBUTORS, AND OTHER TAXPAYERS, FOR EXCEEDING AN ESTIMATE INCLUDED IN THE BALLOT INFORMATION BOOKLET FOR PROPOSITION EE?

”

Full text

The full text of the measure can be read below.

Readability score

See also: Ballot measure readability scores, 2023

Using the Flesch-Kincaid Grade Level (FKGL) and Flesch Reading Ease (FRE) formulas, Ballotpedia scored the readability of the ballot title for this measure. Readability scores are designed to indicate the reading difficulty of text. The Flesch-Kincaid formulas account for the number of words, syllables, and sentences in a text; they do not account for the difficulty of the ideas in the text. The state legislature wrote the ballot language for this measure.

The FKGL for the ballot title is grade level 43, and the FRE is -52. The word count for the ballot title is 92.

Support

Preschool for All Coloradans led the campaign in support of the measure. The campaign provided a full list of endorsements, which may be accessed here.

Supporters

Officials

• Colorado Gov. Jared Polis (D)
• State Sen. Rhonda Fields (D)
• State Sen. Dominick Moreno (D)
• State Rep. Julie McCluskie (D)
• State Rep. Emily Sirota (D)

Political Parties

• Democratic Party of Colorado

Organizations

• American Heart Association
• American Lung Association
• Bright By Text
• Business and Professional Women of Colorado
• Caring for Colorado
• Children's Hospital Colorado
• Clayton Early Learning
• Colorado Children's Campaign
• Colorado PTA
• Council for a Strong America
• Democrats for Education Reform Colorado
• Denver Preschool Program
• Early Childhood Council of Larimer County
• Education Reform Now
• Executives Partnering to Invest in Children
• Gary Ventures Inc
• Great Education Colorado
• Healthier Colorado
• Mile High Early Learning
• Parent Possible
• Pro 15
• Save the Children Action Network
• Spring Institute for Intercultural Learning
• Stand for Children Colorado
• The Women’s Foundation of Colorado

Arguments

• Preschool for All Colroadans: "Proposition EE is bringing in more revenue than was estimated in the Blue Book revenue analysis in 2020. Colorado’s Taxpayer’s Bill of Rights (TABOR) requires that voters approve the state’s retention of the excess revenue. If Proposition ii doesn’t pass, Colorado will have to refund the $23.65 million inequitably, primarily to tobacco wholesalers and retailers. This will result in less money to spend on universal preschool. Vote YES on Proposition ii to retain the $23.65 million for universal preschool and respect the voters’ intent. By voting YES, Proposition ii will allow thousands of children more access to additional preschool programs per year. Additionally, studies have shown that higher prices on tobacco and nicotine products lead to less usage amongst youth and young adults. By retaining these funds, we can keep these harmful products out of the hands of youth across the state of Colorado."

Official arguments

The following was the argument in support of the measure found in the Colorado Blue Book:

Colorado Blue Book Official Arguments: "1) Proposition II maintains tax rates that voters already approved in Proposition EE by a two-thirds majority. The measure ensures that money collected from these voter-approved taxes can be used for its intended purpose—supporting preschool programs—rather than creating refunds for distributors of cigarettes, tobacco products, and nicotine products. Higher tax rates also deter smoking, tobacco, and nicotine use, which may reduce negative health impacts. 2) The measure helps provide free preschool for Colorado families, particularly those with high need, including low-income families and families with at-risk children. Proposition II will allow thousands more children access to additional preschool programs each year. Providing access to free preschool gives all children the same foundation before entering kindergarten. High-quality preschool is shown to improve educational, economic, and health outcomes throughout a child’s life, including higher wages, higher graduation rates, and fewer criminal convictions. Access to preschool also supports working parents."

Opposition

Opponents

Organizations

• The Centennial Institute

Arguments

• The Centennial Institute at Colorado Christian University: "We opposed Proposition EE in 2020 and would oppose any efforts by the state to keep additional tax revenue. Colorado has enough tax dollars. Any additional tax revenue collected should be returned back to the taxed individual or business."

Official arguments

The following was the argument in opposition to the measure found in the Colorado Blue Book:

Colorado Blue Book Official Arguments: "1) Proposition II expands the government unnecessarily. Taxpayers are being asked to give up this refund and pay higher tax rates in the future in order to pay for a program that is already fully funded to the level that voters approved in Proposition EE. When the state collects more revenue than voters approved, it should provide taxpayer refunds and lower tax rates, rather than expand government programs. 2) Proposition II is a tax increase. Taxes on cigarettes, tobacco products, and nicotine products impose a financial burden on people suffering from addiction, particularly for people with lower incomes. Rejecting Proposition II will reduce the high taxes on these products and provide tax relief to Coloradans."

Media editorials

See also: 2023 ballot measure media endorsements

Support

• Grand Junction Daily Sentinel Editorial Board: "If Prop II passes, more money will be available to fund universal preschool. One could make the argument that higher tax rates help curb tobacco and nicotine use (especially among teens) and that early childhood education establishes the kind of foundation that helps students make smart choices later in life. In that regard it punches hard toward important policy outcomes."
• Denver Post Editorial Board: "Preschools are not immune from the pressures of inflation, especially with the struggle to find teachers when most preschools do not pay a living wage. Allowing the state to keep the nicotine and tobacco taxes for the preschool program is part of the cost of running a new state-wide education system. ... we would be thrilled if the nicotine and tobacco taxes caused a reduction in business for Big Tobacco and helped people kick their addictions. Some of the money from the tax does fund smoking and vaping cessation programs. In a similar vein, voters can approve Proposition II and keep the funding flowing to the new preschool program."

Opposition

You can share campaign information or arguments, along with source links for this information, at editor@ballotpedia.org.

Campaign finance

See also: Campaign finance requirements for Colorado ballot measures

The campaign finance information on this page reflects the most recent scheduled reports that Ballotpedia has processed, which covered through December 7, 2023.

Preschool for All Coloradans registered to support the measure. The committee reported $285,050 in cash contributions, $93,723 in in-kind contributions, and $276,088 in cash expenditures.

Ballotpedia did not identify a committee registered to oppose the measure.

	Cash Contributions	In-Kind Contributions	Total Contributions	Cash Expenditures	Total Expenditures
Support	$285,050.01	$93,723.15	$378,773.16	$276,088.04	$369,811.19
Oppose	$0.00	$0.00	$0.00	$0.00	$0.00
Total	$285,050.01	$93,723.15	$378,773.16	$276,088.04	$369,811.19

Support

The following table includes contribution and expenditure totals for the committee in support of Proposition II.

Committees in support of Proposition II
Committee	Cash Contributions	In-Kind Contributions	Total Contributions	Cash Expenditures	Total Expenditures
Preschool for All Coloradans	$285,050.01	$93,723.15	$378,773.16	$276,088.04	$369,811.19
Total	$285,050.01	$93,723.15	$378,773.16	$276,088.04	$369,811.19

Donors

The top donors to the support campaign were as follows:

Donor	Cash Contributions	In-Kind Contributions	Total Contributions
Save the Children Action Network	$50,000.00	$66,535.30	$116,535.30
Healthier Colorado	$90,000.01	$0.00	$90,000.01
Gary Advocacy LLC	$50,000.00	$3,211.05	$53,211.05
Education Reform Now Advocacy	$40,000.00	$0.00	$40,000.00

Opposition

Ballotpedia did not locate a campaign in opposition to the ballot measure.

Methodology

To read Ballotpedia's methodology for covering ballot measure campaign finance information, click here.

Background

Proposition EE, 2020

See also: Colorado Proposition EE, Tobacco and E-Cigarette Tax Increase for Health and Education Programs Measure (2020)

Proposition EE, approved by voters in 2020, was designed to incrementally increase cigarette and tobacco product taxes and create a new tax on nicotine products such as e-cigarettes. Before Proposition EE was adopted, cigarettes were taxed at a statutory rate of 20 cents per pack (one cent per cigarette). Additionally, Amendment 35 of 2004 authorized an additional constitutional tax of 64 cents per pack (3.2 cents per cigarette), for a total state-levied cigarette tax of 84 cents. Proposition EE was designed to incrementally increase the statutory cigarette tax rate to $1.80 per pack by July 2027, thereby increasing the total state-levied cigarette tax to $2.64 per pack. Proposition EE was also designed to set minimum price requirements for cigarettes.

In Colorado, tobacco products (cigars and tobacco designed to be chewed or smoked in a pipe) were taxed at a statutory rate of 20% of the manufacturer's list price (MLP) and a constitutional rate of 20% of the MLP for a total rate of 40% of the MLP. Proposition EE was designed to incrementally raise the statutory tax rate by 22 percentage points by July 2027 for a new total state-levied tobacco products tax rate of 62% of the MLP.

Prior to Proposition EE, in Colorado, nicotine products such as e-cigarettes were not taxed. Proposition EE created a tax on nicotine products that were set to match the tobacco products tax rates. The rate began at 30% of the MLP in 2021 and was set to increase gradually to 62% of MLP by July 2027.

Revenues were set to be dedicated to health and education programs, specifically the universal free preschool program, including the following:

• Preschool programs cash fund;
• State education fund;
• Rural schools cash fund;
• Housing development grant fund;
• Tobacco tax cash fund;
• Tobacco education programs fund;
• State general fund.

Voters approved the measure in a vote of 67.56% in favor to 32.44% opposed.

The fiscal impact statement for Proposition EE was as follows:

“ State revenue. Proposition EE will increase state revenue from cigarette, tobacco product, and nicotine product taxes by $87 million in state budget year 2020-21 and $176 million in state budget year 2021-22, the first full year under the measure. The amount of new revenue will increase as the measure is phased in, with $276 million expected to be generated in state budget year 2027-28. In addition, the measure will also increase state revenue from sales taxes by $0.8 million in state budget year 2020-21 and by $1.5 million in state budget year 2021-22, the first full year under the measure. The amount of additional sales tax revenue will decline as the measure is phased in, with no new sales tax revenue expected in state budget year 2027-28. State spending. Proposition EE will increase state spending by $87 million in state budget year 2020-21 and by $177 million in state budget year 2021-22. As the measure is phased in, state spending will increase, with $276 million expected to be spent in state budget year 2027-28. Spending includes the amounts shown in Figure 1 for education, housing, preschool, tobacco and nicotine education and cessation programs and other programs, as well as costs for administrative and auditing purposes. Taxpayer impacts. Proposition EE is expected to increase taxes paid by an average of $38 per Colorado adult in state budget year 2021-22, and $53 per Colorado adult in budget year 2027-28; however, the direct tax impact applies only to people who consume cigarette, tobacco products, and/or nicotine products. If the percentage of adult smokers remains constant at 14.5 percent, the measure is expected to increase the taxes paid by cigarette smokers by an average of $222 in state budget year 2021-22 and by $291 in state budget year 2027-28. ”

Note: The full fiscal impact statement including tables of estimated revenue can be found on pages 30 and 31 in the 2020 Blue Book.

Colorado cigarette tax revenue distribution

The following table from the Colorado Legislative Council Staff displays the revenue distributions of cigarette and tobacco taxes in Colorado. Amounts are in millions.

Tobacco on the ballot in Colorado

In addition to Proposition EE, Colorado has voted on three measures to increase tobacco taxes.

• Amendment 72 of 2016 was designed to raise the tax on cigarettes by $1.75 per pack and increase the constitutional tax on tobacco products from 20% to 22% (thereby raising the total tax to 42%). The measure was defeated by a vote of 53% to 47%. Altria, a company that owns tobacco brands including Marlboro, spent $17 million opposing Amendment 72 in 2016.

• Initiative 35 of 2004 was an initiated constitutional amendment that was designed to increase tobacco taxes to fund educational and preventative medicine health programs. It was approved by a vote of 61% in favor to 39% against. The measure increased tobacco taxes from 20 cents per pack of cigarettes to 84 cents and increased the tax on tobacco products from 20% to 40%.

• Amendment 1 of 1994 was an initiated constitutional amendment that was designed to amend the Colorado Constitution to place a 50% tax on each pack of cigarettes. The revenues of the tax would have been used for health care, educational programs to reduce tobacco use and research concerning tobacco use, and tobacco-related illnesses. The measure was defeated by a vote of 61% against to 39% in favor.

Colorado Taxpayer's Bill of Rights (TABOR)

This measure required voter approval under TABOR since it would increase state 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 was required to allow the state to retain the revenue above the estimated revenue.

TABOR limits the amount of money the state of Colorado can take in and spend. It limits the annual increase for some state revenue to inflation plus the percentage change in state population. Any money collected above this limit is refunded to taxpayers unless the voters allow the state to spend it.

Since 1992, when TABOR was adopted, through 2022, Colorado voters have decided on 27 statewide ballot measures that would have increased revenue for the state, which required voter approval under TABOR.

• Eight measures asked voters if the state could retain revenue as a voter-approved revenue change that would have otherwise been refunded to taxpayers under TABOR;
• Five measures asked voters to adopt a new tax;
• Two measures asked voters to eliminate a tax exemption (thereby raising state revenue);
• One measure asked voters to reduce income tax deduction amounts;
• Nine measures asked voters to adopt a tax increase;
• One measure asked voters to adopt a tax increase and new tax; and
• One measure asked voters to adopt a tax increase and eliminate a tax exemption.

Eight (29.6%) of the 27 measures were approved while 19 (70.3%) were defeated.

To read about the Taxpayer's Bill of Rights, click here.

Path to the ballot

In Colorado, a legislatively referred state statute must be passed by a simple majority vote in each chamber of the state legislature. Legislatively referred measures do not need to be signed by the governor. Due to the Colorado TABOR, statewide voter approval is required to enact any legislation to increase government revenue at a faster rate than the combined rate of population increase and inflation.

The measure was introduced as House Bill 23-1290 on April 10, 2023. The measure was passed in the House on April 24, 2023, in a vote of 42-21 with two representatives excused. The Senate passed the bill on May 5, 2023, by a vote of 22-13. The measure was passed along party lines with Democrats voting in favor and Republicans voting against.

Vote in the Colorado House of Representatives April 24, 2023
Requirement: Simple majority vote of all members in each chamber
Number of yes votes required: 33  a
	Yes	No	Not voting
Total	42	21	2
Total percent	64.62%	32.31%	3.07%
Democrat	42	0	2
Republican	0	19	0

Vote in the Colorado State Senate May 5, 2023
Requirement: Simple majority vote of all members in each chamber
Number of yes votes required: 18  a
	Yes	No	Not voting
Total	22	13	0
Total percent	62.86%	37.14%	0.00%
Democrat	21	1	0
Republican	1	12	0

How to cast a vote

See also: Voting in Colorado

See below to learn more about current voter registration rules, identification requirements, and poll times in Colorado.

How to vote in Colorado

Poll times

In Colorado, polls are open from 7:00 a.m. to 7:00 p.m. local time for those who choose to vote in person rather than by mail. An individual who is in line at the time polls close must be allowed to vote.

Registration

Check your voter registration status here.

In Colorado, an individual can pre-register to vote if they are at least 15 years old. Voters must be at least 18 years old to vote in any election. A voter must be a citizen of the United States and have established residence in Colorado to vote.

Colorado voters can register to vote through Election Day. However, in order to automatically receive a absentee/mail-in ballot, a voter must register online, through the mail, at a voter registration agency, or driver's license examination facility at least eight days prior to Election Day. A voter that registers through a voter registration drive must submit their application no later than 22 days before the election to automatically receive an absentee/mail-in ballot. A voter can register online or submit a form in person or by fax, email, or mail.

Automatic registration

See also: Automatic voter registration

Colorado automatically registers eligible individuals to vote through the Department of Motor Vehicles and certain other state agencies.

Online registration

See also: Online voter registration

Colorado has implemented an online voter registration system. Residents can register to vote by visiting this website.

Same-day registration

See also: Same-day voter registration

Colorado allows same-day voter registration for individuals who vote in person.

Residency requirements

Colorado law requires 22 days of residency in the state before a person may vote.

Verification of citizenship

See also: Laws permitting noncitizens to vote in the United States

Colorado does not require proof of citizenship for voter registration. An individual applying to register to vote must attest that they are a U.S. citizen under penalty of perjury.

All 49 states with voter registration systems require applicants to declare that they are U.S. citizens in order to register to vote in state and federal elections, under penalty of perjury or other punishment. Seven states — Alabama, Arizona, Georgia, Kansas, Louisiana, New Hampshire, and Wyoming — have laws requiring verification of citizenship at the time of voter registration, whether in effect or not. One state, Ohio, requires proof of citizenship only when registering to vote at a Bureau of Motor Vehicles facility. In three states — California, Maryland, and Vermont — at least one local jurisdiction allows noncitizens to vote in some local elections. Noncitizens registering to vote in those elections must complete a voter registration application provided by the local jurisdiction and are not eligible to register as state or federal voters.

Verifying your registration

The site Go Vote Colorado, run by the Colorado Secretary of State office, allows residents to check their voter registration status online.

Voter ID requirements

Colorado requires voters to present non-photo identification when voting in person. If voting by mail for the first, a voter may also need to return a photocopy of his or her identification with their mail-in ballot. Click here for more information.

The following list of accepted forms of identification was current as of October 2025. Click here for the most current information, sourced directly from the Office of the Colorado Secretary of State.

“

The following documents are acceptable forms of identification: A valid Colorado driver’s license or valid identification card issued by the Colorado Department of Revenue. (Note: documents issued to not lawfully present and temporarily lawfully present individuals under Part 5 of Article 2 of Title 42, C.R.S. are not acceptable forms of identification.) A valid U.S. passport. A valid employee identification card with a photograph of the eligible elector issued by any branch, department, agency, or entity of the U.S. government or of Colorado, or by any county, municipality, board, authority, or other political subdivision of Colorado. A valid pilot’s license issued by the federal aviation administration or other authorized agency of the U.S. A valid U.S. military identification card with a photograph of the eligible elector. A copy of a current (within the last 60 days) utility bill, bank statement, government check, paycheck, or other government document that shows the name and address of the elector. A Certificate of Degree of Indian or Alaskan Native Blood. A valid Medicare or Medicaid card issued by the Centers for Medicare and Medicaid Services. A certified copy of a U.S. birth certificate for the elector. Certified documentation of naturalization. A valid student identification card with a photograph of the eligible elector issued by an institute of higher education in Colorado, as defined in section 23-3.1-102(5), C.R.S.. A valid veteran identification card issued by the U.S. department of veterans affairs veterans health administration with a photograph of the eligible elector. A valid identification card issued by a federally recognized tribal government certifying tribal membership. Any form of identification listed above that shows your address must show a Colorado address to qualify as an acceptable form of identification. The following documents are also considered acceptable forms of identification for voting: Verification that a voter is a resident of a group residential facility, as defined in section 1-1-104(18.5), C.R.S. Verification that a voter is a person committed to the department of human services and confined and eligible to register and vote shall be considered sufficient identification of such person for the purposes of section 1-2-210.5, C.R.S. Written correspondence from the county sheriff or his or her designee to the county clerk indicating that a voter is confined in a county jail or detention facility.

”

• Note: SB 1, signed into law on May 12, 2025, specified that tribal IDs issued by the Bureau of Indian Affairs, the Indian Health Service, or another federal agency were also valid identification.

See also

2023 measures

• 2023 ballot measures
• Taxes on the ballot
• Tobacco on the ballot
• 2023 petition deadlines

Colorado

• Colorado ballot measures
• Colorado initiative laws

News and analysis

• Ballot measure lawsuits
• Ballot measure readability
• Ballot measure polls
• Ballot measure signature costs

External links

• Full text
• 2023 Blue Book