New Colorado excise tax categories for retail marijuana provide additional clarity for licensees

DENVER, Colo. December 15, 2017 -- As of January 1, there are three changes to the retail marijuana excise tax categories that go into effect, in addition to the standard quarterly update to the Average Market Rate (AMR) calculated by the Colorado Department of Revenue (CDOR). These changes are the result of the collaborative rulemaking process involving retail marijuana business licensees and stakeholders. 

Beginning January 1:

  • The following excise tax category and rate for retail marijuana will be discontinued:
    • Contaminated Retail Marijuana Product Allocated for Extraction
  • The following two new excise tax categories and rates will be effective:
    • Bud Allocated for Extraction
    • Trim Allocated for Extraction
  • The new AMR rates will be effective through March 31, 2018.

“We continually strive for voluntary compliance of all applicable tax laws, as well as a fair and inclusive rulemaking process,” said Mike Hartman, executive director of the Colorado Department of Revenue. “In this instance, we listened to industry feedback during emergency rulemaking and were able to find a solution that we believe will maximize both the needs of the industry and the best interests of the State’s residents.”

CDOR highly recommends all retail marijuana businesses utilize the Department’s educational information available to help understand how these new rules might affect them. Customer assistance is also available by calling the Marijuana Tax Information Help Line at 303-205-8287, where representatives are available Monday through Friday from 8 a.m. to 4:30 p.m. to assist. 

For more information, visit the Taxation Division’s website, Colorado.gov/Tax/marijuana-taxes-file.