Information for Retailers
What are my tax licensing requirements? Do I need a sales tax account?
Yes. A sales tax license is required for a medical marijuana center and a sales tax license is required for retail marijuana store. If a business sells both medical and retail marijuana, a sales tax license for each type of marijuana (medical and retail) is required, even if sold at the same location. For information on how to set up a sales tax license, please see FYI Sales 9.
What taxes should I be charging my customers?
All sales of medical marijuana, medical marijuana-infused products, retail marijuana, and retail marijuana-infused products are subject to sales tax. Consumers purchasing medical marijuana and medical marijuana-infused products should be charged the state 2.9% sales tax plus any additional local sales taxes. Consumers purchasing retail marijuana and retail marijuana-infused products should be charged the 2.9% state sales tax, any local sales taxes and an additional 10% state marijuana sales tax.
How should our business report sales taxes on receipts we give to customers?
The sales tax must be separately stated on the receipt as with any other purchase of tangible personal property. The retailer should provide a type of receipt or invoice showing the sales tax as a separate item. There are no unique rules for retail marijuana regarding the invoice/receipt to the customer. See C.R.S. 39-26-106(2)(a).
Where do I find out about tax rates and how do I know which apply?
A complete list of state, city, county, and special district tax rates is available through Revenue Online. The rates are also available in the publication Colorado Sales/Use Tax Rates (DR 1002).
How do I file my taxes with the department?
Retail marijuana and retail marijuana-infused products sales taxes are filed electronically each month on two forms; the Retail Sales Tax Return and the Retail Marijuana Sales Tax Return. The Sales Tax Return and Retail Marijuana Sales Tax Return are filed in Revenue Online. The forms are NOT mailed to businesses.
- What do I report on the Retail Sales Tax Return?
The 2.9% state and local sales taxes for retail marijuana and accessories are filed on the Retail Sales Tax Return. File using the same Colorado Account Number listed on your sales tax license.
- What do I report on the Retail Marijuana Sales Tax Return?
The 10% additional state sales tax on retail marijuana and retail marijuana-infused products is filed on the Retail Marijuana Sales Tax Return. Only retail marijuana and retail marijuana-infused products should be included on the Retail Marijuana Sales Tax Return. File using the same Colorado Account Number listed on your retail marijuana sales tax license.
- Where do I report medical marijuana sales?
Medical marijuana, medical marijuana-infused products and accessories are reported on the Retail Sales Tax Return. This return includes the 2.9% state sales tax plus any local sales taxes. The sales tax for medical marijuana sales and accessories should be filed under the Colorado Account Number that matches with the sales tax license for medical marijuana. Sales tax for medical marijuana can also be filed electronically through Revenue Online.
Example: ABC Company has both a medical marijuana center and a retail marijuana store. The medical marijuana center will file a retail sales tax return that accounts for the 2.9% state sales tax and any local taxes collected by the Department of Revenue. The retail marijuana store will file a Retail Sales Tax Return that accounts for the 2.9% state sales tax and any local taxes collected by the Department of Revenue. It will also file a Retail Marijuana Sales Tax Return that will account for the 10% state marijuana sales tax.
- What if I don't have any tax to report this month?
The applicable sales tax return(s) must be filed even if no sales were made or if no tax is due for the period. Returns with “zero” tax must be filed to avoid non-filer notices and penalty assessments.
How can I learn how to complete the tax return?
-- Retail Marijuana Filing Overview Presentation to Industry (Jan. 29-31, 2014)
-- Sign Up for Revenue Online
-- Instructions for Retail Marijuana Sales Tax Return - 10% Tax
-- Instructions for Regular Sales Tax Return for Retail Marijuana Business
-- Making Payments in Revenue Online
- How do I obtain the return/forms to file?
You should file electronically and therefore not need any paper forms. Forms are not available on the Web site and will not be mailed.
How often do I have to file?
Returns and payments are due each month.
What is the filing deadline?
Return and payment are due the 20th day of month following the reporting period. If the 20th day falls on a weekend or holiday, the due date is the next business day.
- How does a payment made by credit card or e-check in Revenue Online display to my credit card company or bank?
Payments made through the Revenue Online payment portal will display to your credit card company or bank as a payment made to the Colorado Department of Revenue. The transaction will display on your statement as: Co Dept of Revenue colorado.gov, with the payment amount. No information regarding the type of tax on any tax payment is sent to the bank or credit card company.
- What taxes am I paying as a retailer? Excise or Sales?
Retail marijuana is subject to a 15% excise tax on the average market price of retail marijuana. The excise tax is imposed on the first sale or transfer from a retail marijuana cultivation facility to a retail marijuana store, retail marijuana product manufacturing facility or to another retail marijuana cultivation facility. The tax shall be calculated on the basis of the category of the retail marijuana product (i.e., Flower, Trim, or Immature Plant) being sold or transferred.