On March 28, 2019, the Colorado legislature enacted HB 19-033—a law that gave home rule governments like Westminster the right to impose a local sales tax on cigarettes. Westminster initially exempted cigarettes from an additional tax; however, on January 1, 2021, the City of Westminster removed the sales tax exemption for cigarettes, bringing them into alignment with other nicotine and tobacco products (e.g. vaping oils and devices, cigars, and smokeless tobacco), all of which are subject to a similar tax. Since January 1, 2021, cigarettes are now taxed at a rate of 3.85%.

As a home rule city, Westminster is authorized, by State Constitution, to administer and collect its own sales and use taxes. Sales and use tax is a critical source of revenue for the city, generating over $100 million to provide essential services to the public, and accounts for over two-thirds of all General Fund revenues.