CO HB1290

Refers a ballot issue to Colorado voters on November 7, 2023, asking whether the state should retain $23.65 million in excess tax revenue from Proposition EE (cigarette, tobacco, and nicotine product taxes) approved by 66.7% of voters in 2020.

The state received $208 million in actual tax revenue from Proposition EE in fiscal year 2021-22, exceeding the ballot information booklet estimate by $21.5 million, triggering TABOR requirements for refunds and tax rate reductions unless voters approve later.

If voters approve the ballot issue, the $23.65 million will be transferred to the preschool programs cash fund and general fund to enhance Colorado's universal preschool program instead of being refunded to taxpayers.

If voters reject the ballot issue, the state must refund $23.65 million by June 30, 2024, and reduce Proposition EE tax rates by 11.53%, in accordance with TABOR constitutional requirements.

Creates the Proposition EE Refund Cash Fund to hold the disputed revenue pending the November 2023 election results.