New Tobacco Tax: Family-Owned Store Says They'll Stop Selling Nicotine And Lose Thousands

DILLON, Colo. (CBS4) - Inside the family-owned Lake Dillon Liquors, you won't find tobacco products on the shelves in the new year -- and the owners say it's because of the massive new tobacco taxes that went into effect on Jan. 1, 2020.

"I think it is an over step. It started out as a school project for some seniors because we have a vaping problem and they got in with the county and now the county has a power grab for $4 a pack," store owner Kevin Clary said. He has owned the little shop for 30 years and used to sell tobacco products, but decided to not apply for a license in protest over the new taxes this year.

Retail sales of tobacco and nicotine products, including cigarettes and vaping devices, are subject all to the new local tax.

As of Jan. 1, 2020, the voter-approved special sales tax includes a $4 per pack sales tax on cigarettes -- or $0.20 per cigarette. The local sales tax on all other tobacco and nicotine products, including e-cigarettes and vaping devices, will be 40% throughout 2020, rising 10 percentage points per year for four years, according to Summit County officials.

Clary doesn't think the tax is fair and expects to lose out on thousands of dollars in profit in the new year.

"Just another hurdle for small business people here," he said.

Revenues from the tax will fund local tobacco control programs, health services and local enforcement of tobacco control policies, the county says.