Cigarette Wholesale Subcontractor

Cigarette Wholesale Subcontractor

A cigarette wholesale subcontractor is defined as any person, firm, limited liability company, partnership, or corporation who purchases cigarettes from a licensed Colorado distributor/wholesaler for resale to a Colorado cigarette retailer. A cigarette wholesale subcontractor license is required if a subcontractor purchases stamped cigarettes from a licensed Colorado wholesaler for resale to a retailer in Colorado.

How to Apply for a Wholesale Subcontractor License

  • You must provide proof that you have the wholesale sales tax license when you apply for the cigarette distributor license. Select "Wholesale License" in section E on the Colorado Sales Tax Account Application (CR 0100AP) and submit the application prior to applying for the cigarette distributor license.
  • Complete and submit Cigarette Distributor Application (DR 0218) along with the license fee.
  • Provide documentation showing you will purchase cigarettes certified to sell in Colorado with Colorado stamps affixed, from at least one Colorado Licensed Cigarette Distributor.
  • Complete the Master Settlement Agreement (MSA) reporting on the DR 1286 and/or DR 1285.
  • A new cigarette subcontractor will not be approved to obtain a license if the subcontractor owes the state any delinquent taxes or interest administered by the department.

How to Renew a License

Along with the renewal form and payment, documents required for license renewal include:

  • Any unfiled MSA documents Licensed Distributor Reporting Form (DR 1285) or Tobacco Distributor's Certificate of Exemption (DR 1286)
  • Any unfiled tax returns
  • Payment of outstanding debt(s) due to the department
  • A valid sales tax license, if cigarettes are sold directly to consumers and/or are sold at wholesale to retailers. 
  • Provide documentation showing you will purchase cigarettes certified to sell in Colorado with Colorado stamps affixed, from at least one Colorado Licensed Cigarette Distributor.

Filing Information for Cigarette Wholesale Subcontractor

Cigarette Wholesale Subcontractors are not required to file a tax return.
 
A Cigarette Wholesale Subcontractor is required to send in a letter of intent to purchase Participating Manufacturer and/or Non-Participating Manufacturer (PM/NPM) cigarettes. They are also required to file information annually on the Certificate for Exemption MSA/Non-Participating Manufacturer Brands (DR 1286) to renew the Wholesale Subcontractor license.