Tobacco Tax | Account / License

Tobacco products are taxed differently from other tangible personal property/products purchased and sold in Colorado.
There are two types of tobacco distributors in Colorado:
  • A tobacco products distributor and
  • A tobacco products distributing subcontractor.
A tobacco products distributor license is required when a distributor:
  • Operates the place from which wholesale tobacco products are purchased. If sales or shipments are made from two or more separate locations by a wholesaler, a license for each location is required.
  • Brings or causes tobacco products to be brought into Colorado.
  • Makes, manufacturers, or fabricates tobacco products in Colorado for sale in Colorado; or
  • Ships or transports tobacco products to retailers in Colorado. 
A tobacco products distributing subcontractor license is required if the entity purchases tobacco products from a licensed Colorado tobacco products distributor for resale to a retailer in Colorado.