Information for Cultivators
Average Market Rate
What are my tax licensing requirements? What kind of a tax account do I need?
If you are a retail marijuana cultivator, a sales tax license OR wholesale tax license is required for each retail marijuana cultivation facility.
If the retail cultivation facility is owned by and located at the SAME address as the retail marijuana store or medical marijuana center AND the retail store already has a retail sales tax license, no additional sales tax license is required for the marijuana cultivation facility.
If the retail marijuana cultivation facility’s location is NOT at the same address as the medical marijuana center, a wholesale sales license is required.
Do I have to get a surety bond with the Taxation Division if I already have one in place with the Enforcement Division?
Yes. The bonds cover different liabilities and must be obtained for each liability (excise tax and license fees).
How do I determine the amount of the surety bond?
The amount of the bond should be calculated by estimating the quantity of retail marijuana that will be sold or transferred each month, then multiplying the quantities by the average market rate, then multiplying by 15% (excise tax rate), then doubling the amount of estimated tax.
What taxes should I be charging?
Retail marijuana is subject to a 15% excise tax on the average market rate 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-infused 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.
How do I calculate the Excise Tax?
The excise tax is calculated by multiplying the quantity of retail marijuana product by the average market rate at the time, then multiplying by the 15% (excise tax rate). For example: ABC cultivator transfers 3 pounds of flower, 5 pounds of trim and 8 plants to ABC store. At the time of transfer the average market rates are:
$1,876 for Flower
$296 for Trim
$9 per Immature plant
3 lbs. of flower x $1,876 = $5,628
5 lbs. of trim x $296 = $1,480
8 plants x $9 = $72____
$7,180 x .015 = $1,077 in retail marijuana excise tax due
How do I file my taxes with the department?
Retail marijuana excise tax is reported electronically through Revenue Online
. The Retail Marijuana Excise Tax is due the 20th of each month for transfers or sales made by retail cultivators in the previous month. A return must be filed even if no transfers/sales were made or if no tax is due for the period. Returns with a "zero" tax must be filed to avoid nonfiler notices and penalty assessments.
The Retail Marijuana Excise Tax Return is filed through 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?
Return and payment are due monthly.
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.