2025 Tobacco Master Settlement Agreement Forecast

Colorado receives annual payments from tobacco manufacturers as part of the Tobacco Master Settlement Agreement (MSA). The Tobacco MSA was reached in 1998 between certain tobacco manufacturers (known as “participating manufacturers”) and the governments of 52 states and territories. Under the MSA, participating tobacco manufacturers were released from health‑related claims associated with their products in exchange for making perpetual annual payments to states.

This document presents a forecast for annual receipts from the Tobacco MSA through 2027. In April 2024, the state received $83.0 million, which determined distributions to MSA‑funded programs for the current FY 2024-25. The state is expected to receive $78.6 million in 2025, $77.0 million in 2026, and $75.6 million in 2027. Revenue from the Tobacco MSA is exempt from TABOR as a damage award.