DOR Taxation web site

State Sales Tax on Cigarettes

Posted: June 3, 2009
Beginning July 1, 2009, retailers will charge state sales tax of 2.9 percent on all retail sales of cigarettes.  Cigarettes are still exempt from city, county, and special district sales tax.


Businesses will be required to account for state sales tax on cigarettes on the "Colorado Retail Sales Tax Return" (DR 0100).  Changes will be made to the DR 0100 Part A Deductions and Part B Exemptions worksheets so that businesses can include the state sales tax on cigarettes in the calculations.  The tax must be reported and remitted to the Colorado Department of Revenue starting with the July monthly return, due August 20 or, for quarterly filers, the third quarter return due October 20.

This change to charging sales tax on cigarettes is the result of the passage and signing of House Bill 09-1342.