Marijuana Sales Tax
Retail Marijuana Tax Return
Retail marijuana business are required to file the Retail Marijuana Sales Tax Return electronically via Revenue Online. The 15% state retail marijuana sales tax on retail marijuana and retail marijuana-infused products is filed on the Retail Marijuana Sales Tax Return. Only retail marijuana and retail marijuana-infused products should be included on the Retail Marijuana Sales Tax Return. File using the same Colorado Account Number listed on your retail marijuana sales tax license.
Colorado Sales Tax Return (DR 0100)
Additionally, all marijuana businesses must file the Colorado Sales Tax Return (DR 0100). Medical marijuana, medical marijuana-infused products and accessories are reported on the DR 0100, as well. This return includes the state sales tax plus any local sales taxes. The sales tax for medical marijuana sales and accessories should be filed under the Colorado Account Number that matches with the sales tax license for medical marijuana. Sales tax for medical marijuana can also be filed electronically via Revenue Online.
Beginning with the July 1, 2018 filing period, businesses will report their overall Gross Sales and Services on line 1 (including the amount of retail marijuana and retail marijuana product sales) and claim the state exemption by subtracting sales of Retail Marijuana and Retail Marijuana Product on line 10 in Part B – Exemptions Schedule of the return, which carries over to the main return, line 3b, column 1.
“Retail Marijuana” and “Retail Marijuana Products” are defined in statute and do not include other types of tangible personal property that a retail marijuana business may have for sale, including but not limited to apparel, glassware or rolling papers. Any of these other types of items sold are still subject to the 2.9% state sales tax.
For more information, review the Retail Marijuana Sales Tax Changes Fact Sheet and FYI Sales 93: Sales Tax on Marijuana.
Return and payment are due the 20th day of the month following the reporting period. If the 20th day falls on a weekend or holiday, the due date is the next business day. The applicable sales tax return(s) must be filed even if no sales were made or if no tax is due for the period. Returns with “zero” tax must be filed to avoid nonfiler notices and penalty assessments.
State Sales Tax
The state sales tax rate on tangible personal property is 2.9%. These taxes are charged on the final consumer purchase price. Retail marijuana and retail marijuana products are exempt from this state sales tax. The tax will still apply to medical marijuana and medical marijuana products.
State Retail Marijuana Sales Tax Rate
There is a 15% retail marijuana sales tax on all sales of retail marijuana and retail marijuana-infused products in the state charged on the final consumer purchase price.
Local and Special Districts Tax Rates
Visit the Local Government Sales Tax web page for more information on the local sales tax rates for retail products not subject to retail marijuana sales tax.