Liquor Tax

Liquor Licenses

Colorado is a dual licensing authority for the state's licensed retailers and special event permittees. Liquor licensing in Colorado requires retailers to first obtain license approval at the local government level. Liquor licenses are also required for alcoholic beverage manufacturers and distributors. At the state level, liquor licenses are issued by the Liquor Enforcement Division of the Colorado Department of Revenue. 

Liquor Excise Tax 

Every licensed manufacturer and distributor who first sells, uses, or consumes any alcoholic beverage in Colorado must also set up a liquor excise tax account. Once licensed with the Liquor Enforcement Division, a letter will be sent by the Excise Tax Unit providing you with your tax account number and information to set up your tax account through Revenue Online. The Monthly Report of Excise Tax for Alcohol Beverages (DR 0442), along with the supplemental schedules and payment of tax, are due on or before the 20th day of the month following the month in which alcohol beverages are first sold. If you do not receive this letter by the 10th day following the month your liquor license was issued please contact the Excise Tax Unit immediately at dor_excisetax@state.co.us or (303) 205-6848. 

For more information about setting up an account, visit the Excise Tax Account web page. Visit the Filing Information page form more information on how to file the Monthly Report of Excise Tax for Alcohol Beverages (DR 0442).

Liquor Sales Tax

Any business selling alcoholic beverages at retail to customers must obtain a sales tax license before a retail liquor license will be issued by the Liquor Enforcement Division. Please visit the Sales & Use Tax web page for information on how to obtain a sales tax license, set up a sales tax account, and how to collect and remit state sales tax.

In Colorado, many cities and counties collect their sales and use tax, instead of the Colorado Department of Revenue. For more information, visit the Local Government Sales Tax web page.