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Revenue Online Walk-Through Videos
State Sales and Local Tax Rates:
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.)
Marijuana Sales Tax Rate:
Consumers will also pay a 10% sales tax on all retail sales of retail marijuana and marijuana-infused products in the state. (Charged on the final consumer purchase price.)
Medical Marijuana Tax Rates:
Medical marijuana is not subject to the 15% retail marijuana state excise tax (included in the price of the product). Consumers will pay the 2.9% state sales tax plus any local sales taxes on the final consumer purchase.
EXAMPLE: Mary wants to buy one ounce of retail marijuana flower for $200.00. Mary will not see the excise tax on retail marijuana flower because it is included in the purchase price. Mary will pay state sales taxes of $25.80 for the retail marijuana flower. ($200 multiplied by the sales tax rate of 12.9%). This is the state sales tax of 2.9% on all tangible personal property (which includes marijuana) AND the state retail marijuana sales tax of 10%. Mary will also pay local sales taxes. The amount of local sales taxes will depend on the location of the store where the purchase is made.
Retail marijuana and retail marijuana-infused products sales taxes are filed electronically each month on two forms; the Retail Sales Tax Return and the Retail Marijuana Sales Tax Return. The Sales Tax Return and Retail Marijuana Sales Tax Return are filed in Revenue Online. The forms are NOT mailed to businesses.
Medical marijuana, medical marijuana-infused products and accessories are reported on the Retail Sales Tax Return. This return includes the 2.9% 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 through Revenue Online. Example: ABC Company has both a medical marijuana center and a retail marijuana store. The medical marijuana center will file a retail sales tax return that accounts for the 2.9% state sales tax and any local taxes collected by the Department of Revenue. The retail marijuana store will file a Retail Sales Tax Return that accounts for the 2.9% state sales tax and any local taxes collected by the Department of Revenue. It will also file a Retail Marijuana Sales Tax Return that will account for the 10% state marijuana sales tax.
You should file electronically and therefore not need any paper forms. Forms are not available on the Web site and will not be mailed.
Excise Tax on Retail Marijuana (FYI Excise 23)
State Marijuana Excise Tax Rate: Retail marijuana is subject to a 15% excise tax on the average market rate of retail marijuana. The excise tax is based on the average market rate for bud, trim, wet whole plant, immature plants, and seeds.
The Average Market Rate will be included in the Retail Marijuana Excise Tax Return and can be used to calculate tax due when filing.
Current Period Rate:
January 1, 2017 through June 30, 2017
On March 11, 2016, Governor Hickenlooper signed into law House Bill 16-1041, repealing the statutory requirement that MED Medical and Retail Marijuana Business Licensees and applicants must procure and maintain surety bonds (§12-43.3-304; § 12-43.4-303; and § 39-28.8-304 (4) C.R.S.). This legislation was passed with a Safety Clause ensuring the legislation became effective upon the Governor’s signature.
Therefore, effective immediately, the Taxation Division of the Department will no longer require that marijuana businesses obtain or provide proof of surety bonds to guarantee the payment of either sales tax or excise tax.
Sales 93: Sales Tax on Marijuana
Colorado Department of Revenue
Protest Section #237
PO BOX 17087
Denver, CO 80217-0087