Face The State Staff Report
Colorado's House Finance Committee passed a bill Tuesday that could result in what some Republicans are alleging amounts to an unconstitutional tax increase on cigarettes.
Keep smoking - Colorado needs the revenuematze_ott/Flickr
On a 6-5 party-line vote, the committee approved House Bill 1342, legislation specifically seeking to repeal a current exemption of cigarette packs from the state sales tax.
Under the state's current tax structure, the only statewide tax on cigarette packs comes from an 84 cent per-pack excise tax, with revenue going to benefit educational and health programs. In addition, many local governments maintain the authority to charge local sales taxes on such purchases.
If passed, HB 1342 would come on the heels of a federal tax increase on cigarettes earlier this year, which increased the cost of a pack of cigarettes by 62 cents. According to Boston medical researcher and writer Mac Johnson, cigarette prices increased 154 percent between 1980 and 1990, "thanks in large part to increases in federal, state, and local taxes."
While debates surrounding smoking are often contentious, committee member Rep. Kent Lambert, R-Colorado Springs, says that the bill is about more than the $28 million in additional revenue it could bring into the state.
"The plain and clear language of the [Colorado] Constitution says this is against the law," Lambert told Face the State, arguing that the bill's passage would signal a violation of the constitution's Taxpayer's Bill of Rights, which requires that any tax increase must go to a vote of the people.
Democrats have introduced multiple legislative efforts to raise revenue without resorting to a vote on specific taxes or fees, emboldened by the Colorado Supreme Court's recent ruling on a 2007 property tax increase. The ruling has been interpreted by General Assembly lawyers as to condone the removal of tax credits, since the resulting increase in revenue would not exceed any currently applicable constitutional tax limits. Voters temporarily waived the state's TABOR limit in 2005 with the passage of Referendum C.
According to Mike Saccone, spokesman for Attorney General John Suthers, Suthers has not taken a position on HB 1342.
Lambert led a Facebook campaign this week encouraging his constituents to contact fellow committee members for a "no" vote. The effort fell short, with fellow Colorado Springs Rep. Dennis Apuan, a Democrat and a swing vote on the committee, voting to refer the bill to Appropriations. Apuan was not immediately available for comment.
HB 1342 has not yet been scheduled in the House Appropriations Committee, but is expected to be heard later this week.