Marijuana Tax

Marijuana Regulation

Administration and oversight of marijuana businesses in Colorado are conducted by several state agencies. Information on the various agency roles can be found on the Colorado Marijuana website. At the Colorado Department of Revenue, the Marijuana Enforcement Division (MED) oversees regulation and licensing of marijuana businesses for both the medical and retail marijuana, while the Taxation Division administers the retail marijuana sales tax and retail marijuana excise tax. This website includes information on how to file state administered sales and excise tax; including the state sales tax on tangible personal property, retail marijuana sales tax and retail marijuana excise tax. 

Marijuana Taxation

Retail marijuana is subject to retail marijuana excise tax and a retail marijuana sales tax. The retail marijuana excise tax is imposed on the transfer of retail marijuana between retail marijuana business licensees. The retail marijuana sales tax is imposed on the sale of marijuana to a consumer. 

Some products sold in marijuana retail stores are not subject to retail marijuana sales tax; rather, they are subject to retail sales tax. Items such as t-shirts or hats sold by a marijuana retail store are subject to the Colorado retail sales tax. For additional information on the retail sales tax, visit the Sales & Use Tax web page.