Denver businesses brace for impact after voters uphold flavored tobacco ban

After voters overwhelmingly approved Referendum 310 -- upholding Denver's ban on the sale of flavored tobacco and vaping products -- some business owners say the financial hit could be devastating.

Zachary Shadi Kingsley, who owns a convenience store in Denver, said he's disappointed in the outcome, with more than 70% of voters backing the ban.

"It's going to hurt us," Kingsley said. "We calculated last week that close to 30% of our sales will be lost, and that's not a product we can really replace."

Kingsley estimated that the ban could force about 100 vape shops in the city to close and eliminate at least 1,000 jobs. He also cited concerns about the city losing up to $13 million annually in tax revenue -- funds that help pay for early childhood education.

"They're losing $13 million a year from Proposition EE tax money that would be going toward child care," Kingsley said. "How are they going to find that money when we're already $250 million in the hole?"

City officials say that the projected loss has not been verified by Denver's finance department.

According to the Rocky Mountain Smoke Free Alliance, the figure is based on a master sales tax agreement between vaping manufacturers, distributors, and retailers who report Denver sales taxes.

Councilmember Darrell Watson, who represents District 9 and supported the ban, said similar bans elsewhere have not led to the kind of tax revenue loss opponents claim.

"Any municipality that has passed an end to the sale of flavored tobacco has not experienced the loss in tax funding these companies predict," Watson said. "None of that has been proven correct."

Watson called the measure a win for public health, especially for communities of color.

"It's the number one cause of preventable death for African Americans; the use of menthol cigarettes and flavored products," Watson said. "It was time we took a stand."

Enforcement of the ban is expected to begin next year. City officials say they will have more clarity on next steps once the election results are certified. For now, businesses are recommended to apply for financial assistance through the city's Small Business and Entrepreneurs website.