Liquor Taxes -- Quick Answers

Liquor excise tax (liquor) returns are due beginning with the first month your liquor license is issued. In addition, the Manufacturer Production Report for Alternating Proprietor Licensed Premises (DR 0447) must be filed with the Monthly Report of the Excise Tax for Alcohol Beverages (DR 0442). This reporting will track inventory before sales.

When filing electronically, these supplemental forms should be submitted as attachments with your Revenue Online filing.

An alternating proprietor license allows a person or entity to make wine (or beer) at an existing winery (brewery). Contact Liquor Enforcement at 303-205-2300 for more information.

Product must be reported for inventory purposes on the Manufacturer Production Report for Alternating Proprietor Licensed Premises (DR 0447). Taxable product is ready to be reported on form DR 0442 after it is bottled and removed from the alternating proprietor licensed premises. Report the transfer of product from form DR 0447 by entering the number of liters on line 2 of form DR 0442.

The Monthly Report of Excise Tax for Alcohol Beverages (DR 0442) is due beginning with the first month your liquor license is issued. A return must be filed each month, even if there is $0 tax due, and is due by the 20th of the following month. Depending on the company's activity, additional forms may be required, including a Liquor and Beer Export Sales Report (DR 0443), Wholesaler’s Report of Liquor and Beer Purchases (DR 0445), and/or Manufacturer Production Report for Alternating Proprietor Licensed Premises (DR 0447). When filing electronically, these supplemental forms should be submitted as attachments with your Revenue Online filing.

Submit an affidavit of destruction with the Monthly Report of the Excise Tax for Alcohol Beverages (DR 0442) showing the following information:

1. The date of destruction
2. The product type(s) (i.e. vinous liquor, hard cider, etc.) and quantity of destruction
3. The reason for destruction
4. A Signature of someone authorized within the organization (e.g. owner, CFO, brewer)

For questions, contact the Excise Tax Unit at DOR_excisetax@state.co.us, or call 303-205-6879.

Please file your monthly tax return (DR 0442) and submit payment for the tax due if you have not yet done so.  Penalty and interest are due on late payments.

If you already filed your return and submitted your payment, send in the supporting documentation via web message from your Revenue Online account, or mail them to the address on the nonfiler notification.

If you have questions, send us a web message from your Revenue Online account, call 303-205-6848, or 303-205-6879.

Though no product has been sold, a licensed manufacturer is responsible for reporting any liquor excise tax due each month. If no product has been sold, report zero sales on the return and include inventory reporting.

Up to one gallon (or four liters depending on measurement) can be imported into Colorado through airport customs before excise tax is due.

The Colorado Department of Revenue does not provide a receipt for tax payments. Photocopy the return and payment to keep for your records. Attach a copy of the form and payment to your shipment.

Submit an affidavit of destruction with the Monthly Report of the Excise Tax for Alcohol Beverages (DR 0442) showing the following information:

1. The date of destruction
2. The product type(s) (e.g. vinous liquor, hard cider, etc.) and quantity of destruction
3. The reason for destruction
4. A Signature of someone authorized within the organization (i.e. owner, CFO, brewer)

For questions, contact the Excise Tax Unit at DOR_excisetax@state.co.us, or call 303-205-6879.

The Monthly Report of Excise Tax for Alcohol Beverages (DR 0442), is due beginning with the first month your liquor license is issued.  A return must be filed each month, even if there is $0 tax due, and is due by the 20th of the following month. Depending on the company's activity, additional forms are required including a Liquor and Beer Export Sales Report (DR 0443) and/or Wholesalers Report of Liquor and Beer Purchases (DR 0445). When filing electronically, these supplemental forms should be submitted as attachments with your Revenue Online filing.

If you have questions regarding your Liquor Excise tax notice of deficiency, send us a web message from your Revenue Online account, call 303-205-6848, or 303-205-6879.

If you disagree with the notice of deficiency, file a protest either through Revenue Online or send in a written protest to the address below within 30 days of the date of the letter.

Colorado Department of Revenue
Excise Tax Accounting Section, Room 237
PO Box 17087
Denver, CO  80217-0087

The Colorado Department of Revenue does not require out-of-state companies who only have an Importer's License to file liquor tax returns or to remit Colorado liquor excise tax for the product they ship to Colorado licensed distributors. 

In addition to the excise tax imposed on sales of wine, the following fees and surcharges apply:

• Colorado Winery Surcharge - graduated rate for Colorado produced wines, except for hard cider.
• Colorado Wine Development fee - $.01 per liter on any vinous product sold, except for hard cider.
• Colorado Grape/Produce Excise Tax - $10 per ton of produce used in the production of wine AND hard cider.

The Colorado winery surcharge is based on yearly sales from July 1 through June 30