Marijuana Tax | Frequently Asked Questions

1. Where can I find information regarding whether the sale of marijuana has been allowed by my city or county?

Contact your local city or county to find out what their rules on marijuana may be. You may be able to find contact information for your city or county at Colorado Counties Inc. (CCI) or the Colorado Municipal League (CML).

Also, the Colorado Department of Revenue - Marijuana Enforcement Division (MED) issues and updates the following reports "Local Authorities Allowing Medical Marijuana" and "Local Authorities Allowing Retail Marijuana" on the MED Web site under Quick Answers. Please note that this list is not comprehensive; rather, it is based on information provided to the Department by local authorities. 

2. What is contract price? 

The Contract Price is defined as “the invoice price charged by a retail marijuana cultivation facility to each (unaffiliated retail marijuana business) licensed purchaser for each sale or transfer of unprocessed retail marijuana, exclusive of any tax that is included in the written invoice price, and exclusive of any discount or other reduction.” 

3. Where can I find the current and prior period Average Market Rate (AMR)?

Visit the Marijuana Average Market Rate (AMR) web page for AMR information.

4. How do I file my sales and/or excise tax returns with the Department?

The Retail Marijuana Tax Return and the Marijuana Excise Tax Return can be found on Revenue Online. You may file your Retail Sales Tax Return (DR 0100) either on the paper form or via Revenue Online. 

5. Where do I find instructions for how to complete the Marijuana Excise Tax Return?

Select an Option Below:

6. Am I required to obtain a sales tax license for my marijuana business? 

Please see the Marijuana Sales Tax License webpage for information on the types of license(s) you may need to register with the Colorado Department of Revenue Taxation Division.

7. Where can I find information on how to file my Retail Marijuana Sales Tax Return?

Visit the Marijuana Sales Tax web page for information on rates and how to file your tax returns. 

8. How do I file for a refund of overpaid tax?

To file for a refund, please complete and submit the Claim for Refund (DR 0137).

9. Where can I find out more information about the total amount of marijuana tax collected?

For more information on marijuana tax data, including local government tax distributions (from the special sales tax), please see the Marijuana Tax Data web page. Note that local jurisdictions may apply additional taxes, which we do not collect or report on.

10. How is marijuana tax revenue spent by the State of Colorado? 

The Department of Revenue lists on its website how marijuana tax revenue is spent.