Cigarette and tobacco products are defined and taxed differently from other products or tangible personal property purchased and sold in Colorado. Cigarette and tobacco products require separate licenses and are subject to different tax rates and due dates, filing requirements and Master Tobacco Settlement Agreement (MSA) reporting. All retailers and distributors are required to have a Colorado retail/wholesale sales tax license.
- A retailer who purchases Colorado stamped cigarettes and/or tax-paid tobacco products for sale to the end consumer is required to provide a retail sales tax license when purchasing product from a licensed Colorado distributor. The retailer is not required to have a cigarette or tobacco products license.
- A retailer who purchases Colorado stamped cigarettes and/or tax-paid tobacco products for sale to other retailers must have a cigarette and/or tobacco products wholesale subcontractor license.
- A wholesale distributor responsible for stamping or importing cigarettes and/or tobacco products into Colorado is required to have a cigarette and/or tobacco distributor license.
- The first person or entity to bring any tobacco product into Colorado must be licensed as a tobacco distributor.