Cigarette Retailer Filing Information
The cigarette tax in Colorado is 4.2 cents per cigarette and is represented by a $0.84 or $1.05 tax stamp depending on the number of cigarettes in the pack. The tax stamp is affixed on each pack of cigarettes by the wholesaler and indicates that all applicable taxes have been paid.
Retailers must charge the state sales tax of 2.9 percent on all retail sales of cigarettes. Beginning January 1, 2014 retailers in the regional transpiration district (RTD) and the scientific and cultural facilities district (SCFD) must charge the 1% RTD and/or 0.1% SCFD special district sales tax on all retail sales of cigarettes. Cigarettes are exempt from city and county sales tax and from special district (other than the RTD and SCFD special districts) sales tax. Businesses will be required to account for RTD, SCFD, and state sales tax on cigarettes on the "Colorado Retail Sales Tax Return" (DR 0100).
Tobacco Retailer Filing Information
By definition, a tobacco product is any tobacco product other than a cigarette. All retail sales of tobacco products are subject to the 2.9% state sales tax as well as any applicable local and special district sales taxes. For information on local sales/use tax rates, see the publication Colorado Sales/Use Tax Rates (DR 1002) which is updated each January and July. You may also view Local Sales Tax Rates.
Effective August 5, 2009, anyone in possession of tobacco products not taxed by the distributor must pay the Colorado tobacco excise tax within 30 days of receiving the product. Payment can be made using form DR 0225. Failure to pay the tax within 30 days will result in 500% penalty plus tax and interest. (Tobacco products are also subject to sales or use taxes). This new law did NOT change the existing requirement that the first person or entity to bring any tobacco product into Colorado must be licensed as a tobacco distributor.
Once you set up a sales tax account with the Colorado Department of Revenue you should receive a Colorado Sales Tax Return (DR 0100) to remit your tax and payment for the tobacco sales to the Department of Revenue. For more information, please see our How to File Sales Tax Web page.