Fuel Distributors

Recordkeeping Requirements

Colorado law requires that you keep true and complete records of your fuel tax returns, receipts, disbursements, and activities for at least three years after filing of returns.

Fuel Reporting

Fuel used to power motor vehicles over the road is taxable. This includes farm or ranch vehicles driving over public access roads. For information about fuel uses that qualify for refunds, see the Exempt Use of Fuel page. The filing deadline for any given month is the 26th day of the following month; unless that day falls on a legal holiday or a weekend, then the following business day will be considered the legal deadline.

As a Fuel Distributor account holder, you will be required to file a monthly Fuel Distributor Tax Return through the Colorado Fuel Tracking System (COFTS), reporting all fuel distribution activities. A return must be filed every month, regardless of whether there is activity. If tax is due on the return, electronic payment of tax by Electronic Funds Transfer (EFT) is also mandatory.
 
To file electronically with Colorado Fuel Tracking System (COFTS), you must have a signed "COFTS Electronic Trading Partner Agreement" on file. For more information on filing returns, COFTS filing schedules and instructions for reporting various filing issue see the COFTS Information web page. 

Governments

A Government entity may sell fuel to another governmental entity that has a fuel tax exemption certificate without having to be a licensed fuel distributor. The fuel sold must be used exclusively by the purchasing governmental entity in performing its governmental functions and activities. The government entity selling the fuel is required to keep a copy of the fuel tax exemption certificate for any entity that it provides fuel. If a governmental entity provides fuel to anyone other than another certificate holding governmental entity, it must obtain a fuel distributor license, remit any tax due and file monthly reports.

For fuel sales to the State of Colorado on fuel that is purchased and the Transportation Fee is paid to the carrier by the buyer, it is the responsibility of Colorado Fuel Distributors to report all fuel distribution activity on your monthly COFTS filing.