Colorado voters approved a ballot measure in 2020 increasing taxes on tobacco and nicotine products and letting the state use the revenue to fund a universal preschool program. 

But the increased taxes generated more money than expected to the tune of about $24 million.  So the legislature passed a bill asking voters this year through Proposition II to let the state keep that extra money — as well as all future revenue from the taxes — and use it to expand the preschool program.

If voters reject Proposition II, the tax revenue collected above what was projected will be returned to nicotine and tobacco wholesalers and distributors. Additionally, the nicotine and tobacco tax rates will be cut to prevent future excess revenue. 

Why does the state need voter permission to keep the excess revenue? Click here to read more.