CO SB086

Caps the statutory excise tax on premium cigars at 20% of the manufacturer's list price, down from the current 36% rate (which was scheduled to increase to 42% after July 1, 2027)

Defines "premium cigar" as a cigar that is hand-rolled, has a wrapper made of whole tobacco leaves, and does not have a filter or mouthpiece

Effectively rolls back statutory tax rate increases on premium cigars that have been implemented since 2005

Does not affect the separate 20% constitutional tax on premium cigars, which remains in place

Takes effect July 1, 2026, applying to sales, use, consumption, handling, or distribution of premium cigars on or after that date