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Sales TaxesNEW: Retail Marijuana Sales Tax Changes -- Fact Sheet (effective July 1, 2017)
Note: We are revising our webpages and FYIs to reflect the new changes noted in the fact sheet above. More information will be available on this webpage soon. Updates to the information and links below will also be updated soon.
Filing the Colorado Sales Tax Return (DR 0100)
Medical marijuana, medical marijuana-infused products and accessories are reported on the DR 0100. 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 through Revenue Online.
Retail marijuana businesses will still be required to file the Colorado Sales Tax Return (DR 0100). 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 that are sold are still subject to the 2.9% state sales tax.
Filing the Retail Marijuana Sales Tax Return
The 10% 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.Due Dates
Return and payment are due the 20th day of month following the reporting period. If the 20th day falls on a weekend or holiday, the due date is the next business day.
IMPORTANT: 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.
Excise tax is imposed on the first sale or transfer from a retail marijuana cultivation facility to a retail marijuana store, retail marijuana product manufacturing facility or to another retail marijuana cultivation 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 of retail marijuana. The excise tax is based on the average market rate for bud, trim, wet whole plant, immature plants, and seeds. One marijuana excise tax return is required for each stand alone location (retail marijuana only).
Due to recent statutory requirements resulting from Senate Bill 17-192, and beginning on August 9, 2017, there will be changes to the definition of the Average Market Rate (AMR), regarding how the excise tax on retail marijuana is calculated and how frequently the AMR is recalculated. Effective August 9, 2017: Affiliated retail marijuana business will continue to calculate their excise tax at 15% of the AMR. However, unaffiliated retail marijuana business will calculate their excise tax at 15% of the contract rate. See: Retail Marijuana Excise Tax Calculation Changes and AMR Frequency Fact Sheet. Note: We are revising our webpages and FYIs to reflect the new changes noted in the fact sheet. More information will be available on this webpage soon. Updates to the information and links below will also be updated soon.
IMPORTANT: The excise tax return must be filed even if no transfers or 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.