Products that contain tobacco and prepared in a manner suitable for consumption by chewing or for smoking in a pipe or otherwise, are subject to the tobacco products excise tax, which is 40% of the manufacturer’s list price (excluding discounts taken).
E-cigarettes, vapes, nicotine pouches, or other products which contain nicotine, but do not contain tobacco, are not considered tobacco products for taxation purposes and are; therefore, not subject to the tobacco products excise tax.
Tobacco is taxed differently from other tangible personal property/products purchased and sold in Colorado. A tobacco product is any other tobacco product that is not a cigarette.
Blunt Wraps Taxability
Wrapping materials made with tobacco, in whole or in part, are considered tobacco products and are subject to the tobacco products excise tax under the provisions of C.R.S. 39-28.5-102 and 39-28.5-102.5.
Untaxed Tobacco Products
Anyone in possession of tobacco products on which the excise tax is not paid by a Colorado licensed distributor must pay the Colorado tobacco products tax within 30 days of receiving the product. This includes tobacco products such as cigars and pipe tobacco ordered on the Internet, by mail or by telephone.
Payment can be made with the Tobacco Products Tax Return for Non-Licensed Distributors (DR 0225). Colorado statutes state that failure to pay the excise tax within 30 days will result in a 500% penalty, plus tax and interest. Tobacco products are also subject to sales or use taxes. Payment of the tax does NOT change the existing requirement that the first person or entity to bring any tobacco product into Colorado must be licensed as a tobacco distributor.