Colorado Tobacco Tax Increase, Amendment 72 (2016)

Colorado Amendment 72
Election date November 8, 2016
Topic Tobacco and Taxes
Status d Defeated
Type Constitutional amendment	Origin Citizens

2016 measures
November 8
Amendment T d
Amendment U d
Amendment 69 d
Amendment 70 a
Amendment 71 a
Amendment 72 d
Proposition 106 a
Proposition 107 a
Proposition 108 a
Polls
Voter guides
Campaign finance
Signature costs

The Colorado Tobacco Tax Increase, also known as Amendment 72, was on the November 8, 2016, ballot in Colorado as an initiated constitutional amendment. It was defeated.

A "yes" vote supported this proposal to raise the tax on cigarettes by $1.75 per pack of 20.

A "no" vote opposed this proposal, keeping the tax rate at its current level of 84 cents per pack.

Initiatives to increase taxes on tobacco products were also on the ballot in Colorado as Proposition 56, Missouri as Proposition A and Amendment 3, and North Dakota as Measure 4 in 2016.

Election results

Amendment 72
Result		Votes	Percentage
d No		1,454,342	53.06%
Yes		1,286,851	46.94%

Election results from Colorado Secretary of State

Overview

Status of the tobacco tax in Colorado

Colorado had a tobacco excise tax of $0.84 per pack of cigarettes in 2016. The mean or average state tobacco tax is $1.65. Thirteen states have lower tobacco taxes than Colorado, while 35 states and D.C. have higher taxes. The federal government levies a $1.01 tobacco tax in 2016.

Revenue from the current state tax on tobacco goes to health-related programs, including Medicaid, children's health care, disease prevention and treatment, and tobacco education programs, and other state government programs.

Initiative design

Amendment 72 would have increased the tobacco tax by $1.75 per pack of 20 cigarettes, bringing the total tobacco tax up to $2.59. The tobacco tax on other tobacco products would have been 22 percent of the manufacturer’s list price. E-cigarettes would have been exempt.

Revenue from the tobacco tax would have been distributed as follows: 18 percent to health-related programs funded by the prior tobacco taxes, 27 percent towards research on tobacco-related health issues, 16 percent to education and prevention, 14 percent to grants for veteran employment, health improvement, and homelessness prevention, 10 percent to grants for child and adolescent mental health and substance abuse prevention and treatment, 10 percent towards the construction of community health centers, and 5 percent towards student loan repayment and training for healthcare professionals working in rural and underserved areas.

State of the ballot measure campaigns

The Campaign for a Healthy Colorado 2016 registered to support the measure. The committee raised $2.5 million.

No Blank Checks in the Constitution registered to oppose the measure. The committees raised $18.25 million.

The biggest donors to the “Yes” campaign was the American Heart Association, which contributed $395,835. The biggest donor against Amendment 72 was Altria Client Services LLC, which contributed $17.03 million.

Text of measure

Ballot title

The ballot title was as follows:

“

Shall state taxes be increased $315.7 million annually by an amendment to the Colorado Constitution increasing tobacco taxes, and, in connection therewith, beginning January 1, 2017, increasing taxes on cigarettes by 8.75 cents per cigarette ($1.75 per pack of 20 cigarettes) and on other tobacco products by 22 percent of the manufacturer’s list price; and allocating specified percentages of the new tobacco tax revenue to health-related programs and tobacco education, prevention, and cessation programs currently funded by existing constitutional tobacco taxes; and also allocating new revenue for tobacco-related health research, veterans' programs, child and adolescent behavioral health, construction and technology improvements for qualified health providers, educational loan repayment for health professionals in rural and underserved areas, and health professional training tracks?

”

Ballot summary

The ballot title was as follows:

Existing taxes on cigarettes. The federal government collects a tax of $1.01 on each pack of 20 cigarettes. Additionally, every state collects a cigarette tax. Colorado's cigarette tax is 84 cents per pack. Of this amount, 64 cents is required to be spent on health-related programs identified in the Colorado Constitution, including Medicaid, children's health care, tobacco education programs, and disease prevention and treatment. The remaining 20 cents is spent on various state government programs. Local governments may choose not to collect a cigarette tax in order to receive a share of state revenue. Since 1973, no local government has collected a cigarette tax. Existing taxes on other tobacco products. Both the federal and state government collect taxes on non-cigarette tobacco products, including cigars, pipe tobacco, snuff, dip, and chewing tobacco. Existing taxes do not apply to e-cigarettes. The federal tax is calculated according to the product's weight or price. Colorado's state tax is equal to 40 percent of the manufacturer's list price of the product. Of this amount, half is spent on the same health programs as the cigarette tax, and half is spent on other state government programs. Some local governments collect sales taxes on tobacco products. Existing cigarette and other tobacco taxes. Colorado collected about $200.3 million from cigarette and tobacco taxes in state budget year 2015-16. Of this amount, $143.7 million was spent on health-related programs as required in the Colorado Constitution, and $56.6 million was spent on other state and local government programs. State sales taxes are collected on some services and most goods, including cigarettes and tobacco products. Sales taxes are spent on the state's general operating budget. Additional taxes on cigarettes and tobacco products in Amendment 72. The measure increases the cigarette tax by $1.75 per pack of 20 cigarettes and the tax on other tobacco products by 22 percent of the manufacturer's list price. The tax increase will take effect on January 1, 2017. Neither the existing taxes nor the additional taxes in Amendment 72 apply to e-cigarettes. Revenue from the new taxes is exempt from the state's constitutional revenue limit. Distribution of new tax revenue in Amendment 72. The distribution of the money generated from the additional taxes is shown in Table 1. Amendment 72 requires the state legislature to maintain 2016 funding levels for existing health-related programs in Table 1 and use the new tax revenue to expand the existing programs.

Constitutional changes

See also: Section 21, Article X, Colorado Constitution

The proposed amendment was designed to add the following subsection to Section 21 of Article X of the Colorado Constitution:> Note: Hover over the text and scroll to see the full text.

Section 21. Tobacco Taxes for Health Related Purposes.

(10) (a) THE PEOPLE OF COLORADO HEREBY FURTHER FIND THAT:

(I) TOBACCO PRODUCT SALES IN THE STATE OF COLORADO HAVE INCREASED;

(II) COLORADO'S NEED TO DETER CHILDREN AND YOUNG ADULTS FROM STARTING SMOKING IS AS CRITICAL AS EVER;

(III) COLORADO NOW SPENDS LESS THAN HALF OF THE CENTERS FOR DISEASE CONTROL RECOMMENDED LEVEL ON TOBACCO EDUCATION AND CESSATION PROGRAMS;

(IV) SMOKING ADVERSELY AFFECTS THE WELFARE OF COLORADANS DIRECTLY AND INDIRECTLY AND, WITHOUT FURTHER ACTION, WILL DO SO NOW AND IN THE FUTURE; AND

(V) IT IS IN THE COLLECTIVE INTEREST OF ALL COLORADANS TO RAISE TOBACCO TAXES AND COMPETITIVELY AWARD TOBACCO TAX REVENUES TO ENHANCE THE PHYSICAL AND BEHAVIORAL HEALTH OF OUR POPULATION, TO FUND RESEARCH TO PREVENT AND CURE DISEASES SUCH AS CANCER, EMPHYSEMA, AND ALZHEIMER'S, AND TO PROVIDE PROGRAMS THAT WILL ENHANCE THE WELL-BEING OF VETERANS, AS WELL AS THOSE WHO LIVE IN RURAL AND UNDERSERVED AREAS OF OUR STATE.

(b) THERE ARE HEREBY IMPOSED THE FOLLOWING ADDITIONAL CIGARETTE AND TOBACCO TAXES, WHICH SHALL BE IN ADDITION TO THE INCREASED RATES BY SUBSECTION (2) OF THIS SECTION:

(I) A STATEWIDE CIGARETTE TAX, ON THE SALE OF CIGARETTES BY WHOLESALERS, AT EIGHT AND THREE-QUARTERS CENTS PER CIGARETTE ($1.75 PER PACK OF TWENTY); AND

(II) A STATEWIDE TOBACCO PRODUCTS TAX, ON THE SALE, USE, CONSUMPTION, HANDLING, OR DISTRIBUTION OF TOBACCO PRODUCTS BY DISTRIBUTORS, AT TWENTY-TWO PERCENT OF THE MANUFACTURER'S LIST PRICE.

(c) THE CIGARETTE AND TOBACCO TAXES IMPOSED BY THIS SUBSECTION (10) SHALL BE IN ADDITION TO ANY OTHER CIGARETTE AND TOBACCO TAXES EXISTING AS OF THE EFFECTIVE DATE OF THIS SUBSECTION ON THE SALE OR USE OF CIGARETTES BY WHOLESALERS AND ON THE SALE, USE, CONSUMPTION, HANDLING, OR DISTRIBUTION OF TOBACCO PRODUCTS BY DISTRIBUTORS. SUCH EXISTING TAXES AND THEIR DISTRIBUTION SHALL NOT BE REPEALED OR REDUCED BY THE GENERAL ASSEMBLY.

(d) THE REVENUES GENERATED BY OPERATION OF THIS SUBSECTION (10)(b) SHALL BE APPROPRIATED AS FOLLOWS:

(I) EIGHTEEN PERCENT OF THE REVENUES COLLECTED UNDER THIS SUBSECTION, UP TO THIRTY-SIX MILLION DOLLARS ANNUALLY, SHALL BE ALLOCATED UNDER THE FORMULA FOR PROGRAMS SET FORTH IN SUBSECTION (5); PROVIDED, HOWEVER, ANY AMOUNT OVER THIRTY-SIX MILLION DOLLARS THAT WOULD OTHERWISE BE APPROPRIATED FOR THIS PURPOSE, BASED ON THIS EIGHTEEN PERCENT ALLOCATION, SHALL BE DISTRIBUTED PROPORTIONATELY ACCORDING TO THE RELATIVE DISTRIBUTION OF REVENUES PROVIDED BY SUBSECTION (10)(d)(II) (A)-(F).

(II) IN LIGHT OF THE ALLOCATION OF EIGHTEEN PERCENT OF REVENUES COLLECTED UNDER THIS SUBSECTION AS PROVIDED IN SUBSECTION (10)(d)(I), THE REMAINING REVENUES COLLECTED UNDER THIS SUBSECTION (10) SHALL BE APPROPRIATED IN THE FOLLOWING AMOUNTS:

(A) SIXTEEN PERCENT FOR TOBACCO EDUCATION, PREVENTION, AND CESSATION IN THE SAME MANNER AS THE REVENUE PROVIDED BY SUBSECTION (5)(c) OF THIS SECTION.

(B) TWENTY-SEVEN PERCENT FOR TOBACCO-RELATED RESEARCH INTO CARDIOVASCULAR AND PULMONARY DISEASES, CANCER, ALZHEIMER'S DISEASE, BEHAVIORAL HEALTH, MATERNAL HEALTH, AND EARLY CHILDHOOD DEVELOPMENT TO BE ADMINISTERED BY THE COLORADO DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT, OR ITS SUCCESSOR AGENCY, WHICH SHALL ESTABLISH FOR THIS PURPOSE GRANT-MAKING GUIDELINES AFTER CONSULTING WITH RESEARCH INSTITUTIONS THAT ARE RECOGNIZED AS AUTHORITIES IN THESE RESEARCH AREAS AND THAT SPECIALIZE IN SUCH RESEARCH. BASED ON SUCH GUIDELINES, GRANTS FROM THESE REVENUES SHALL BE AWARDED FOR IN-STATE RESEARCH BY COLORADO ENTITIES ON THE BASIS OF SCIENTIFIC MERIT AS DETERMINED BY AN OPEN, COMPETITIVE PEER REVIEW PROCESS THAT ASSURES OBJECTIVITY, CONSISTENCY, AND HIGH QUALITY RESEARCH AND ALSO EMPLOYS CONFLICT-OF-INTEREST STANDARDS THAT REPRESENT BEST PRACTICES AS UTILIZED IN THE COMPETITION FOR AND AWARD OF FEDERAL GRANTS IN THIS FIELD.

(C) FOURTEEN PERCENT FOR VETERANS' PROGRAMS TO ASSIST WITH THEIR WELL-BEING, INCLUDING PHYSICAL AND BEHAVIORAL HEALTH, SERVICES TO RURAL VETERANS, HOMELESSNESS PREVENTION, AND EMPLOYMENT TRANSITION SERVICES THROUGH PROGRAMS TO BE ADMINISTERED BY THE COLORADO DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT, OR ITS SUCCESSOR AGENCY. THE DEPARTMENT SHALL CONSULT WITH, AND CONSIDER THE EXPERTISE AND RECOMMENDATIONS OF NONPROFIT VETERANS SERVICE ORGANIZATIONS TO DETERMINE SERVICE PRIORITIES AND DEVELOP THE GRANT-MAKING PROCESS.

(D) TEN PERCENT FOR CHILD AND ADOLESCENT BEHAVIORAL HEALTH INCLUDING EVIDENCE-BASED PREVENTION, EARLY INTERVENTION, AND TREATMENT PROGRAMS TO BE ADMINISTERED BY THE COLORADO DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT, OR ITS SUCCESSOR AGENCY, THROUGH A GRANT-MAKING PROCESS.

(E) TEN PERCENT FOR CONSTRUCTION, IMPROVEMENT, AND NEW TECHNOLOGIES FOR ANY QUALIFIED PROVIDER, AS DEFINED IN SECTION 25.5-3-301, COLORADO REVISED STATUTES, OR ANY SUCCESSOR ACT, THAT MEETS EITHER OF THE FOLLOWING CRITERIA: IS A COMMUNITY HEALTH CENTER AS DEFINED IN SECTION 330 OF THE PUBLIC HEALTH SERVICE ACT OR ANY SUCCESSOR ACT; OR AT LEAST FIFTY PERCENT OF THE PATIENTS SERVED BY THE QUALIFIED PROVIDER ARE UNINSURED OR MEDICALLY INDIGENT AS DEFINED IN THE COLORADO MEDICAL ASSISTANCE ACT OR ANY SUCCESSOR ACT, OR ARE ENROLLED IN THE CHILDREN'S BASIC HEALTH PLAN OR THE COLORADO MEDICAL ASSISTANCE PROGRAM OR SUCCESSOR PROGRAMS.

SUCH REVENUES SHALL BE APPROPRIATED TO THE COLORADO DEPARTMENT OF HEALTH CARE POLICY AND FINANCING, OR ITS SUCCESSOR AGENCY, FOR THE PURPOSE OF FUNDING COLORADO HEALTH SAFETY NET INFRASTRUCTURE IMPROVEMENTS, INCLUDING ALTERATION AND RENOVATION, CONSTRUCTION, EQUIPMENT-ONLY PURCHASES, AND HEALTH INFORMATION TECHNOLOGY-RELATED HARDWARE AND SOFTWARE.

(F) FIVE PERCENT FOR EDUCATIONAL LOAN REPAYMENT FOR HEALTH PROFESSIONALS WHO WORK IN RURAL AND UNDERSERVED AREAS OF THE STATE THROUGH THE COLORADO HEALTH SERVICES CORPS, OR SUCCESSOR PROGRAM, AND PROFESSIONAL TRAINING TRACKS FOR PHYSICIANS AT TEACHING HEALTH CENTERS, DENTISTS, PEDIATRIC RESIDENCIES, PEDIATRIC PSYCHOLOGY FELLOWSHIPS, AND COMMUNITY DENTAL HEALTH COORDINATORS THROUGH PROGRAMS TO BE ADMINISTERED BY THE COLORADO DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT, OR ITS SUCCESSOR AGENCY.

(e) THE LEGISLATIVE RESEARCH OFFICES OF THE GENERAL ASSEMBLY SHALL ANNUALLY PUBLISH ON AN EASILY IDENTIFIED PORTION OF THE GENERAL ASSEMBLY'S WEBSITE THE NAMES OF ALL PROGRAMS FUNDED UNDER THIS SUBSECTION (10) FOR THE PREVIOUS FISCAL YEAR, THE AMOUNTS APPROPRIATED FROM THE TAXES GENERATED BY THIS SUBSECTION (10) FOR SUCH PROGRAMS, AND THE PURPOSES OF THE EXPENDITURES.

(f) ALL REVENUES RECEIVED BY OPERATION OF THIS SUBSECTION (10) SHALL BE EXCLUDED FROM FISCAL YEAR SPENDING, AS THAT TERM IS DEFINED IN SECTION 20 OF ARTICLE X OF THIS CONSTITUTION, AND THE CORRESPONDING SPENDING LIMITS UPON STATE GOVERNMENT AND ALL LOCAL GOVERNMENTS RECEIVING SUCH REVENUES.

(g) REVENUES APPROPRIATED PURSUANT TO PARAGRAPHS (10)(d)(II) (B)-(F) OF SUBSECTION (10) SHALL BE USED TO SUPPLEMENT REVENUES THAT ARE APPROPRIATED BY THE GENERAL ASSEMBLY AS OF JANUARY 1, 2016, AND SHALL NOT BE USED TO SUPPLANT THOSE APPROPRIATED REVENUES.

(h) THE GENERAL ASSEMBLY MAY ENACT SUCH LEGISLATION AS WILL FACILITATE IMPLEMENTATION OF THIS INITIATIVE.

(i) THIS SUBSECTION (10) IS EFFECTIVE JANUARY 1, 2017.

Fiscal impact statement

The fiscal impact statement was:

State revenue and spending. Amendment 72 is expected to increase new state tax revenue by $315.7 million in state budget year 2017-18, the first full year in which the new tax will be in effect. The higher cost of cigarettes is expected to reduce tobacco consumption and revenue from existing taxes by $16.7 million. The net impact to state revenue under Amendment 72 is expected to be $299.0 million in state budget year 2017-18. The amendment outlines how the new revenue from the tax increase must be spent, shown below in Table 2. All of these programs will be administered by either the Colorado Department of Public Health and Environment or the Department of Health Care Policy and Financing. Because Amendment 72 takes effect January 1, 2017, state revenue will increase by approximately $149.5 million, and costs will increase in the Colorado Department of Public Health and Environment, the Department of Health Care Policy and Financing, and the Department of Revenue in budget year 2016-17. State Spending and Tax Increases Article X, Section 20 of the Colorado Constitution requires that the following fiscal information be provided when a tax increase question is on the ballot: estimates or actual amounts of state fiscal year spending for the current year and each of the past four years with the overall percentage and dollar change; and for the first full year of the proposed tax increase, an estimate of the maximum dollar amount of the tax increase and of state fiscal year spending without the increase. "State fiscal year spending" is a legal term in the Colorado Constitution. It equals the amount of revenue subject to the constitutional spending limit that the state is permitted to keep and either spend or save for a single year. Table 3 shows state fiscal year spending from FY 2012-13 through FY 2016-17. Table 4 shows the revenue expected from the new tax, and state fiscal year spending without the tax, for FY 2017-18, the first full fiscal year for which the increase would be in place.

Background

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Local Local tobacco Local tobacco tax

Tobacco tax in Colorado

Colorado voters have decided on two tobacco-related ballot measures. In 1994, voters defeated Amendment 1, which would have raised tobacco taxes by 2.5 cents per cigarette, and taxed 50 percent of the manufacturer's list price of other tobacco products.

In 2004, voters approved Initiative 35, which increased the tax on cigarette packs from 20 cents to 84 cents, and increased the tax on other tobacco products from 20 percent to 40 percent of the price. Revenue was allocated for funding healthcare services and tobacco education/cessation programs.

2016 tobacco taxes

Below is a chart detailing the state tobacco excise tax in all 50 states, plus the District of Columbia, as of August 1, 2016. The federal government levied a $1.01 tobacco tax in 2016. In 2016, New York had the highest tobacco tax at $4.35 per pack of cigarettes. Missouri had the lowest tobacco tax at 17 cents per pack of cigarettes. The mean or average tobacco tax was $1.65.

State	2016 tobacco taxes	Rank
Alabama	$0.675	40
Alaska	$2.00	13
Arizona	$2.00	13
Arkansas	$1.15	33
California	$0.87	37
Colorado	$0.84	38
Connecticut	$3.90	2
Delaware	$1.60	24
Florida	$1.339	29
Georgia	$0.37	49
Hawaii	$3.20	5
Idaho	$0.57	45
Illinois	$1.98	18
Indiana	$1.00	36
Iowa	$1.36	28
Kansas	$1.29	31
Kentucky	$0.60	43
Louisiana	$1.08	34
Maine	$2.00	13
Maryland	$2.00	13
Massachusetts	$3.51	4
Michigan	$2.00	13
Minnesota	$3.00	8
Mississippi	$0.68	39
Missouri	$0.17	51
Montana	$1.70	21
Nebraska	$0.64	41
Nevada	$1.80	19
New Hampshire	$1.78	20
New Jersey	$2.70	9
New Mexico	$1.66	23
New York	$4.35	1
North Carolina	$0.45	47
North Dakota	$0.44	48
Ohio	$1.60	24
Oklahoma	$1.03	35
Oregon	$1.32	30
Pennsylvania	$2.60	10
Rhode Island	$3.75	3
South Carolina	$0.57	45
South Dakota	$1.53	26
Tennessee	$0.62	42
Texas	$1.41	27
Utah	$1.70	21
Vermont	$3.08	6
Virginia	$0.30	50
Washington	$3.025	7
Washington, D.C.	$2.50	12
West Virginia	$1.20	32
Wisconsin	$2.52	11
Wyoming	$0.60	43

This map is current as of September 18, 2016.

Support

Yes on 72, also known as the Campaign for a Healthy Colorado, led the support campaign in support of Amendment 72.

Supporters

Officials

• Gov. John Hickenlooper (D)

Organizations

All Kids Covered Alzheimer's Association of Colorado American Academy of Pediatrics - Colorado American Cancer Society Cancer Action Network American Heart Association American Lung Association in Colorado American Stroke Association Campaign for Tobacco Free Kids Caring for Colorado Foundation Colorado Academy of Family Physicians Colorado Access Colorado Association of School Nurses Colorado Behavioral Healthcare Council Colorado Education Association Colorado Center on Law and Policy Colorado Chapter of the American College of Emergency Physicians Colorado Children’s Campaign Colorado Coalition for the Medically Underserved Colorado Consumer Health Initiative Colorado Community Health Network Colorado Dental Association Colorado Fiscal Institute Colorado Health Providers Alliance Colorado Hospital Association Colorado Nonprofit Association Colorado Medical Society Colorado Providers Association Colorado Psychiatric Society Colorado Public Health Association Colorado Radiological Society Colorado Society of Osteopathic Medicine CREA Results Denver Health and Hospital Authority Denver Medical Society Denver Public Health Department Disabled American Veterans E-9ers Association of Colorado Eating Disorder Foundation Good Samaritan Medical Center Group to Alleviate Smoking Pollution (GASP) Healthier Colorado Honor Bell Foundation LCW Post 1 American Legion Los Servicios de La Raza March of Dimes Mile High Military Officers Association of America Military Officers Association of America Council of Chapters Military Order of the Purple Heart Department of Colorado Mountain Family Health Centers National Jewish Health National Pathfinders Association New Era Oral Health Colorado Paralyzed Veterans of America, Mountain States Chapter Project Sanctuary Public Health Nurses Association of CO Rocky Mountain Navy Servicios de La Raza Team Equine Steps Foundation United Veterans Committee Veterans of Foreign Wars Post #1

Businesses

Centura Health Children’s Hospital Colorado Clinica Family Health Clinica Tepeyac ClinicNET COPIC Community Health Provider Alliance Craig Hospital Delta Dental of Colorado Denver Community Health Services Health One High Plains Community Health Lutheran Medical Center Marillac Clinic, Inc. Mental Health Colorado Metro Community Provider Network Platte Valley Medical Center Peak Vista Community Health Center Pueblo Community Health Center Pueblo Triple Aim Corporation Rio Grande Hospital River Valley Family Health Center Rocky Mountain Fisher House Saint Joseph Medical Center Salud Family Health Center SCL Health St. Mary's Medical Center Summit Community Care Clinic Sunrise Community Health Uncompahgre Medical Center

Arguments

Yes on 72 answered the question "Why increase the cigarette tax?" with the following:

“

Raising the cigarette tax is THE most effective way to reduce smoking and to stop tobacco companies from getting more children and adults addicted to cigarettes for the rest of their lives. Smoking is the number one cause of preventable death in Colorado, killing more than 5,000 Coloradans a year. Colorado’s current tax (38th in the nation) is too small and we have fallen behind most states in efforts to stop smoking. In 2015, Colorado saw the first increase in cigarette sales in over a decade. We still have more than 650,000 adults and nearly 24,000 high school students who smoke and Colorado kids smoke 7.1 million packs of cigarettes a year. Increasing the cigarette tax will keep kids from starting this deadly habit and raise money for medical research, tobacco cessation programs and support for Coloradans most affected by smoking.

”

Debra Dyer, chair of the Department of Radiology and director of the Lung Cancer Screening CT Program at National Jewish Health, and James J. Fenton, pulmonologist and associate professor of medicine at National Jewish Health, wrote an opinion article in The Denver Post. The following was an excerpt from their article:

“

Tobacco-related illnesses including emphysema, cancer and heart disease are the leading cause of preventable death in this country. Lung cancer is attributable to smoking in nearly 85 percent of cases and is the No.1 cause of cancer death in men and women — more than breast, colon, prostate and ovarian cancer combined. Yet in Colorado, more than 15 percent of adults and 10 percent of high school-age youth smoke. Even more concerning is the fact that cigarette sales increased in 2015, the first time in over a decade. ... Tobacco tax increases are used in other states as an effective, evidence-based strategy to reduce smoking and tobacco use. Studies show that for every 10 percent increase in the price of cigarettes, consumption decreases by 3 to 5 percent in adults and 6 to 7 percent in kids. Significant tax increases are actually more effective than smaller increases over time. Colorado has one of the lowest tobacco taxes in the country at 84 cents, ranking 38th out of 50 states. We are nearly $1 below the national average, and it has been 12 years since the tobacco tax was last increased.

”

Other arguments in support of the measure included:

• Dr. Kim Dulaney, a cardiologist and President of the American Heart Association in Colorado Springs, said, "Smoking is the No. 1 cause of preventable death in Colorado. What we've seen in states where taxes are really high like New York ($4.35 per pack) is that smoking rates have decreased."

Official arguments

The following arguments in support of Amendment 72 were listed in the official voter guide:

“

1) Higher prices for cigarettes and tobacco products have been shown to deter smoking and tobacco use, especially among children and young adults. When cigarette taxes were last increased in 2005, the number of cigarettes consumed per person in Colorado fell by 12.6 percent. Tobacco use is a leading cause of preventable diseases like cancer, and heart and lung disease, contributing to 5,100 deaths in Colorado per year. Reducing smoking and tobacco use will improve the health of Colorado residents. 2) Dedicating cigarette and tobacco tax revenue to health care and research is an important way to offset the health care burden and cost tobacco use places on the state. Tobacco use increases direct health care costs in Colorado by an estimated $1.9 billion annually, with additional health care costs related to secondhand smoke. The revenue from the proposed tax increase will fund health programs, research, and benefits for Colorado veterans, people with mental health diagnoses, and rural health care providers.

”

Opposition

No on Amendment 72, also known as No Blank Checks in the Constitution, led the campaign in opposition to Amendment 72.

Opponents

• Altria Client Services LLC

Arguments

No on Amendment 72 made the following four arguments against the initiative:

“

Less than 20% Goes to Smoking Prevention Amendment 72 raises tobacco taxes by $315 million per year, but dedicates less than 20% of the new tax money to smoking prevention. If we’re going to tax smokers hundreds of millions more per year, then more of the new tax money should be dedicated to helping smokers quit or keeping kids from starting. Little Oversight. No Accountability. More than half of the revenue generated by this tax is earmarked for programs that aren’t even determined yet and 27% of the funds would go for grant awards with no established guidelines. This massive tax increase gives state agencies a blank check to spend hundreds of millions each year with only vague direction and little oversight. Most of $1.6 Billion Already Diverted Colorado has received more than $1.6 billion from tobacco companies that could be used for tobacco prevention and treatment, but the state has spent most of that revenue on unrelated government programs. Instead of raising tobacco taxes, Colorado should stop diverting these funds to unrelated programs and spend them on helping people stop smoking and keeping kids from starting. Doesn’t Fund Programs Helping Most Colorado Families Colorado families are facing a number of critical problems that need to be addressed like insufficient school funding, rising cost of living, crumbling roads and bridges, and population growth. But instead of solving these problems, this measure raises taxes by $315 million a year to pay for the pet projects of the special interests backing the amendment.

”

Official arguments

A No on Amendment 72 advertisement

The following official arguments in opposition to Amendment 72 were listed in the official voter guide:

“

1) Amendment 72 is a $315.7 million tax increase. The measure creates a constitutional requirement that revenue from the new taxes be spent on specific programs, even if these programs are ineffective at reducing the cost of tobacco use. Unless voters approve another constitutional change, the spending priorities in the measure will receive taxpayer funding indefinitely. As tobacco use declines, Amendment 72 will lock in state spending on unnecessary programs even when new needs are identified in the state budget. 2) Tripling the tax on cigarettes impacts low-income tobacco users the most. Recent studies have shown that people with lower incomes are more likely to use tobacco products and less able to afford a tax increase. Nationally, more than a quarter of people in poverty smoke cigarettes, and tobacco users with low incomes spend about 14 percent of their household income on tobacco products. Because these products are addictive, tobacco users may continue using tobacco even after taxes are increased. Low-income tobacco users who are unable to quit will subsidize programs that benefit non-tobacco users, taking money out of already tight household budgets.

”

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 31, 2016.

The Campaign for a Healthy Colorado 2016 registered to support the measure. The committee raised $2.5 million.

No Blank Checks in the Constitution registered to oppose the measure. The committees raised $18.25 million.

	Cash Contributions	In-Kind Contributions	Total Contributions	Cash Expenditures	Total Expenditures
Support	$2,335,103.00	$166,892.86	$2,501,995.86	$2,335,103.00	$2,501,995.86
Oppose	$17,030,000.00	$1,216,004.65	$18,246,004.65	$17,030,000.00	$18,246,004.65
Total	$19,365,103.00	$1,382,897.51	$20,748,000.51	$19,365,103.00	$20,748,000.51

Support

The following table includes contribution and expenditure totals for the committee(s) supporting the measure.

Committees in support of Amendment 72
Committee	Cash Contributions	In-Kind Contributions	Total Contributions	Cash Expenditures	Total Expenditures
The Campaign for a Healthy Colorado 2016	$2,335,103.00	$166,892.86	$2,501,995.86	$2,335,103.00	$2,501,995.86
Total	$2,335,103.00	$166,892.86	$2,501,995.86	$2,335,103.00	$2,501,995.86

Donors

The following were the top donors to the support committee(s).

Donor	Cash Contributions	In-Kind Contributions	Total Contributions
American Heart Association	$395,835.00	$0.00	$395,835.00
University Physicians Inc	$250,000.00	$0.00	$250,000.00
University of Colorado Health	$250,000.00	$0.00	$250,000.00
Childrens Hospital Colorado	$238,429.00	$0.00	$238,429.00
Colorado Community Health Network	$148,509.00	$0.00	$148,509.00

Opposition

The following table includes contribution and expenditure totals for the committee(s) in opposition to the initiative.

Committees in opposition to Amendment 72
Committee	Cash Contributions	In-Kind Contributions	Total Contributions	Cash Expenditures	Total Expenditures
No Blank Checks in the Constitution	$17,030,000.00	$1,216,004.65	$18,246,004.65	$17,030,000.00	$18,246,004.65
Total	$17,030,000.00	$1,216,004.65	$18,246,004.65	$17,030,000.00	$18,246,004.65

Donors

The top donors to the opposition committee(s) were as follows:

Donor	Cash Contributions	In-Kind Contributions	Total Contributions
Altria Client Services	$17,030,000.00	$0.00	$17,030,000.00
McLane Company, Inc.	$0.00	$28,451.00	$28,451.00

Methodology

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

Media editorials

Support

• Boulder Daily Camera‎ said: "Colorado's state tax on cigarettes was last raised 12 years ago, to 84 cents a pack. ... Colorado's price is no longer driving down smoking. For the first time in a decade, cigarette sales increased in 2015 to 194.4 million packs, from 193.2 million the year before, according to the Colorado Department of Public Health and Environment."
• Colorado Springs Independent said: "We don't care that much for "sin" taxes, but it's also hard to argue with where this money would be going, especially for mental health but also to low-income people."
• The Denver Post said: "The harm cigarettes have wrought and continue to cause is a global tragedy. Forcing consumers to rethink their habit and helping others recover from the addiction is worth the higher tax. We urge voters to help snuff it out and support Amendment 72."
• The Gazette said: "It would do so by increasing the tax on a pack of cigarettes from $.84 to $2.59. The price of a pack would rise by $1.75. It's a hit most young people, those most likely to start smoking, cannot afford. It would make cigarettes less attractive and less available. It would put an absolute limit on the number of cigarettes that users, as a collective, could afford to buy."
• Glenwood Springs Post Independent‎ said: "It’s proven that higher taxes on tobacco products reduce use. We also know that the best way to reduce health-care costs is to prevent disease rather than treating sickness after it has taken hold. Inhibiting tobacco use prevents disease and death, and saves money."
• Grand Junction Daily Sentinel said: "The current average price on a pack of cigarettes in Colorado is 84 cents, ranking it 38th in the nation for tobacco taxes. If Amendment 72 passes, the three-fold increase in taxes would still put Colorado outside the top 10. In other words, if raising taxes is the most effective way to get smokers to quit, Colorado should have already broached this subject, especially in light of policy directives aimed at making Colorado the healthiest state in the nation."

Opposition

• The Coloradoan said: "It’s well-intended — and in fact the decision not to support the legislation was not unanimous for this very reason — but it is overly broad in its allocation of funds and misplaced as a constitutional amendment."
• Longmont Times-Call said: "In addition, the tobacco cessation programs the tax would fund, if successful, would generate less revenue if fewer people smoke. That could prompt an unending spiral of tax increases to keep such a program funded. A "no" vote is recommended."
• Loveland Reporter-Herald said: “Unfortunately, such a large tax increase is regressive, in that it affects low-wage earners much more than high-wage ones. In addition, the tobacco cessation programs the tax would fund, if successful, would generate less revenue if fewer people smoke. That could prompt an unending spiral of tax increases to keep such a program funded. A "no" vote is recommended.”
• The Tribune said: "Everyone agrees smoking is bad and lung cancer is worse. Still, we don’t support the move to hike Colorado’s cigarette tax. For us, there are too many unanswered questions about whether the money would really be spent in the way voters think it will be. We’re also not thrilled at the prospect of adding yet another tax measure to our Constitution."

Path to the ballot

See also: Laws governing the initiative process in Colorado

• The proposed initiative was filed with the Colorado secretary of state's office on April 8, 2016, and the petition format was approved on May 12, 2016.
• Amendment 72 proponents needed to collect 98,492 signatures by August 8, 2016, to land the measure on the ballot.
• Supporters submitted signatures by the August 8, 2016, deadline.
• The Colorado secretary of state's office certified Amendment 72 on August 22, 2016.

Cost of signature collection:
Sponsors of the measure hired Kennedy Enterprises to collect signatures for the petition to qualify this measure for the ballot. A total of $574,681.00 was spent to collect the 98,492 valid signatures required to put this measure before voters, resulting in a total cost per required signature (CPRS) of $5.83.

State profile

Demographic data for Colorado
	Colorado	U.S.
Total population:	5,448,819	316,515,021
Land area (sq mi):	103,642	3,531,905
Race and ethnicity**
White:	84.2%	73.6%
Black/African American:	4%	12.6%
Asian:	2.9%	5.1%
Native American:	0.9%	0.8%
Pacific Islander:	0.1%	0.2%
Two or more:	3.5%	3%
Hispanic/Latino:	21.1%	17.1%
Education
High school graduation rate:	90.7%	86.7%
College graduation rate:	38.1%	29.8%
Income
Median household income:	$60,629	$53,889
Persons below poverty level:	13.5%	11.3%
Source: U.S. Census Bureau, "American Community Survey" (5-year estimates 2010-2015) Click here for more information on the 2020 census and here for more on its impact on the redistricting process in Colorado. **Note: Percentages for race and ethnicity may add up to more than 100 percent because respondents may report more than one race and the Hispanic/Latino ethnicity may be selected in conjunction with any race. Read more about race and ethnicity in the census here.

Presidential voting pattern

See also: Presidential voting trends in Colorado

Colorado voted for the Democratic candidate in five out of the seven presidential elections between 2000 and 2024.

Pivot Counties (2016)

Ballotpedia identified 206 counties that voted for Donald Trump (R) in 2016 after voting for Barack Obama (D) in 2008 and 2012. Collectively, Trump won these Pivot Counties by more than 580,000 votes. Of these 206 counties, four are located in Colorado, accounting for 1.94 percent of the total pivot counties.

Pivot Counties (2020)

In 2020, Ballotpedia re-examined the 206 Pivot Counties to view their voting patterns following that year's presidential election. Ballotpedia defined those won by Trump won as Retained Pivot Counties and those won by Joe Biden (D) as Boomerang Pivot Counties. Nationwide, there were 181 Retained Pivot Counties and 25 Boomerang Pivot Counties. Colorado had three Retained Pivot Counties and one Boomerang Pivot County, accounting for 1.66 and 4.00 percent of all Retained and Boomerang Pivot Counties, respectively.

More Colorado coverage on Ballotpedia

• Elections in Colorado
• United States congressional delegations from Colorado
• Public policy in Colorado
• Endorsers in Colorado
• Colorado fact checks
• More...

Related measures

Tobacco measures on the ballot in 2016
State	Measures
California	California Proposition 56: Tobacco Tax Increase a
Missouri	Missouri 60 Cent Cigarette Tax, Constitutional Amendment 3 d
Missouri	Missouri 23 Cent Cigarette Tax, Proposition A d

Recent news

The link below is to the most recent stories in a Google news search for the terms Colorado Amendment 72 2016 tobacco tax. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.

Colorado Tobacco Tax Increase, Amendment 72 (2016) - Google News

See also

Suggest a link

• 2016 ballot measures
• Colorado 2016 ballot measures
• Laws governing the initiative process in Colorado
• Tobacco on the ballot
• State tax revenues

External links

Basic information

• Amendment 72
• Colorado 2016 Ballot Information Book

Support

• Yes on 72
• Yes on 72 Facebook
• Yes on 72 Twitter

Opposition

• No on Amendment 72

Footnotes

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