Marijuana Taxes | File

Sales Tax

Retail Marijuana Tax Return

Retail marijuana business are required to file the Retail Marijuana Sales Tax Return electronically via Revenue Online. Additionally, all marijuana businesses must file the Colorado Sales Tax Return (DR 0100)The 15% additional state 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)

Retail marijuana businesses are required to 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 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. 
 
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.

Rates

State Sales Tax: The state sales tax rate on all tangible personal property, including marijuana, is 2.9%. These taxes are charged on the final consumer purchase price. Retail marijuana and retail marijuana products are exempt from 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: See the DR 1002 for current and applicable rates.

Special Taxation Districts

SB17-267 removed some special districts' ability to levy sales taxes on retail marijuana sales as of July 1, 2017. SB18-088 clarified that the special districts authorized by prior voter approval to tax retail marijuana sales before July 1, 2017  may continue to do so. The Colorado General Assembly found it necessary to enact this bill to be retroactive, but not retrospective, in an effort to alleviate the unfair burden on sellers and purchasers to recover the sales tax from July 1, 2017  through February 22, 2018 (the date SB18-088 was signed into law). Therefore, retail marijuana businesses in the affected special districts will resume collecting special district sales taxes on sales of retail marijuana and retail marijuana products beginning on either May 1, 2018 or July 1, 2018, which are mutually agreed upon dates between the Department of Revenue and each of the special districts. Here is an overview of the special districts and the effective dates:

Special districts beginning to collect tax on retail marijuana on May 1, 2018: 
  • Gunnison Valley RTA
  • Montezuma HSD
  • Edwards Metro Dist.
  • Summit MHA
  • Bachelors Gulch Metro Dist.
  • Two Rivers Metro Dist.
Special districts beginning to collect tax on retail marijuana on July 1, 2018: 
  • Regional Transportation District (RTD)
  • Scientific and Cultural Facilities District (SCFD)
  • San Miguel RTA
  • Pike Peak RTA
  • Roaring Fork RTS 
  • Mt. Vernon Country Club Metro Dist.

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Excise Tax

Excise tax is imposed on the first sale or transfer from a retail marijuana cultivation facility to a retail marijuana store or retail marijuana product manufacturing facility. Medical marijuana is not subject to the 15% state retail marijuana excise tax. 

State Retail Marijuana Excise Tax Rate 

Retail marijuana is subject to a 15% excise tax on the Average Market Rate (AMR) or contract price* of retail marijuana. The excise tax is based on the average market rate for Bud, Trim, Immature Plant, Wet Whole Plant, Seed, Bud Allocated for Extraction and Trim Allocated for Extraction. One marijuana excise tax return is required for each retail marijuana cultivation facility.
*As a result of Senate Bill 18-259 and regulation 1 CCR 201-18 section 39-28.8-302 (for more on transfers between unaffiliated cultivations and affiliated businesses), there is a narrow exception for transfers to use the contract price for calculating excise tax, specific to transfers between unaffiliated cultivation facilities transferring to affiliated retail marijuana stores or product manufacturers.
  • Effective January 1, 2019, transfers of retail marijuana between unaffiliated cultivation facilities, and then to affiliated retail marijuana stores or retail marijuana product manufacturers, are subject to the excise tax based on the contract price between the unaffiliated cultivation facilities, ONLY WHEN all four of the following conditions have been met:
  1. The retail marijuana was transferred to the cultivation facility from an unaffiliated cultivation facility
  2. The retail marijuana was harvested by the previous cultivation for sale at a retail marijuana store or for extraction by the retail marijuana product manufacturer, and did not undergo further cultivation at the facility that received the retail marijuana
  3. A contract price was established at the time of the transfer between the unaffiliated cultivations
  4. The retail marijuana was subsequently transferred to an affiliated retail marijuana store or retail marijuana product manufacturer
If all four of the above conditions have NOT been met, then the excise tax on the transfers is determined based on the AMR, not the contract price. The excise tax is still to be reported and paid by the cultivation facility that transferred the marijuana to the affiliated store or manufacturer.
  • Effective August 9, 2017:
    • Sales or transfers between licensed cultivation facilities are not subject to the state excise tax.
    • Affiliated retail marijuana businesses and unaffiliated retail marijuana businesses who do not have a contract price at the time of the sale will calculate their excise tax at 15% of the AMR. Unaffiliated retail marijuana businesses with a contract price at the time of sale will calculate their excise tax at 15% of the contract price.
For more information, review the Summary of Retail Marijuana Excise Tax Changes (Updated Dec. 22, 2017) and FYI Excise 23: Excise Tax on Retail Marijuana.

Average Market Rate for Unprocessed Retail Marijuana

Period Rate: October 1 to December 31, 2019

Retail Bud Rate  $999 per pound
Retail Trim Rate $325 per pound
Retail Immature Plant Rate $8 per plant
Wet Whole Plant Rate $173 per pound
Seed Rate $5 per seed
Trim Allocated for Extraction Rate $200 per pound
Bud Allocated for Extraction Rate $254 per pound

Frequently Asked Questions