Liquor Taxes -- Quick Answers

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

An alternating proprietor license allows a person or entity to make wine (or beer) at an existing winery (brewery). Contact Liquor Enforcement at 303-205-8203 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.

Currently Colorado law requires alcohol excise tax returns be filed on a monthly basis.

The department asks that you round your payment to the nearest dollar. If your tax is $0.50 or less, you should round down to $0.00 and not make a payment with the return. If your tax is more than $0.50, you should round the tax to $1.00 and pay $1.00 with the return.

Follow the instructions on the notice and file a written protest within 30 days of the date on the notice.

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.

Contact the Liquor Enforcement group at 303-205-2305 for instructions.

Depending on the company's activity, forms required include Monthly Report of Excise Tax for Alcohol Beverages (DR 0442) an Export Sales Report (DR 0443) and/or Wholesalers Report of Liquor and Beer Purchases (DR 0445), and Manufacturer Production Report for Alternating Proprietor Licensed Premises (DR 0447).

If you are unsure why you received a notice on your Liquor Excise Tax account call the Excise Tax Accounting Section at 303-205-8211 ext. 6848 or 6879.

If the notice is valid, pay the requested amount. If the notice is not valid file a protest either through Revenue Online or send in written protest within 30 days of the date of the letter.

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. 

The following:

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