Aspen targets wallets of tobacco users

Aspen voters will be asked in November to bless a $3 tax on a pack of cigarettes and a 40 percent tax on other tobacco products.

The ballot language still needs to be adopted through a resolution — the Aspen city council will look at several ballot possibilities at its formal meeting on Monday, and also will consider raising cigarette taxes at a rate of 10 cents annually until it reaches $4 per pack.

In June, the council raised the purchase age for all tobacco products, including e-cigarettes, to 21 from 18, making it the state’s first county or municipality to do so. The reasoning was that raising the age would deter Aspen’s younger set from using and becoming addicted to tobacco products.

The new age-minimum law takes effect Jan. 1, with the city expecting to forgo about $75,000 it gets back from the state’s 84-centper-pack state tobacco tax — money city manager Steve Barwick said has been used to fund numerous civic services.

The new local tax, expected to net $275,000 annually, would be put into the city’s general fund, though some of the money would be used for public outreach concerning the health risks of tobacco use and other addictive substances.

While general-fund money can be used in any way the city council chooses, Barwick asked that the council consider using the tobacco-tax cash for programs that are in line with their intention to create a healthier environment.

A pack of cigarettes now costs about $7 in Aspen.

Other locales with cigarette taxes include Cook County, Illinois, which has a local tax of $3 per pack with a state tax of $1.98, and New York City, which has a local tax of $1.50 with a state tax of $4.35, according to research by the city’s administrators.

In advance of its work session this week, the city contacted Aspen retailers for feedback. The responses were not positive, according to a memo from assistant city manager Sara Ott, finance director Don Taylor and city attorney Jim True.

“The most significant factors for opposition were concerns from the retailers that they would see a substantial decline in sales revenue, both directly from reduced tobacco sales as well as a decline in incidental/ additional sales resulting from clientele entering the businesses primarily to purchase tobacco products who also purchase items such as food and beverages,” the memo said.