Vaping tax moving through General Assembly

An effort to tax vaping and increase taxes on other nicotine products — a top legislative priority for Gov. Jared Polis — narrowly won final approval in the state House on Wednesday and got a Senate hearing the same day.

The Senate finance committee limited testimony on the bill to two hours Wednesday afternoon as lawmakers face a deadline of midnight Friday to adjourn for the year.

If the bill, which was introduced late in the legislative session, does win approval in the Senate, voters would have the final say in the fall. Voters must approve all new taxes in Colorado under the Taxpayer’s Bill of Rights.

The governor’s office estimates the new taxes would generate about $317 million annually. Most of that new revenue would go toward expanding preschool — one of Polis’ central campaign promises. Another chunk — $75 million — would help pay for a proposed reinsurance program — a new pool of money for health insurance companies to cover their most expensive patients. The approach has helped lower premiums in other states.

The vaping tax bill’s House sponsor, state Rep. Yadira Caraveo, a Thornton Democrat, celebrated the House’s 34-31 passage of the legislation in a statement.

“In the six years I’ve been a pediatrician, I have seen the rise of the teen vaping epidemic and the negative impacts it is having on their health and development. Kids as young as eleven are vaping and this bill will help decrease youth use of nicotine and tobacco products,” she said. “Right now, there is a major loophole that is allowing vaping products to go untaxed.”

Still, the bill’s future isn’t assured. Seven House Democrats sided with Republicans in voting against the tax, and Democrats hold a narrower majority in the Senate.