Aviation Taxes

Colorado state and state-collected local sales tax is due on aviation jet fuel used in turbo propeller or jet engine aircraft for all FAA Part 121 or 135 air carriers. Sales tax is charged on the purchase price of the fuel, which may include the cost of fuel, state and federal excise taxes, and any airport fuel flowage fees.

The amount of aviation jet fuel sold (retail sales) is reported when the retailer/distributor files their Aviation Fuel Tax Return (DR 1510). The entity that sells the fuel to the end user is responsible for remitting the aviation fuel sales tax. Only fuel is reported on the Aviation Fuel Sales Tax Return (DR 1510).

For filing periods January 2026 or later, retailers are not able to retain the state service fee. For filing periods December 2025 or before:

• Retailers with total net taxable sales up to $1,000,000 can retain 4%, up to the maximum state service fee allowed of $1,000. The 4.0% state service fee is calculated on the return. The reductions to the state service fee are calculated on the State Service Fee Worksheet (form DR 0103).
• Retailers with total net taxable sales of $1,000,000 or more are not able to retain the state service fee. 

The revenues generated from the state sales tax are transferred to the aviation fund as required by statute (§43-10-109(1) C.R.S.). Tires, motor oil, and other aviation items are reported on the Retail Sales Tax Return (DR 0100).

Mandatory Electronic Filing

Due to rule 39-21-119.5-3, taxpayers that submit the Aviation Fuel Sales Tax Returns are required to file their returns through Revenue Online according to the following schedule:

The penalty for not filing electronically when required is the greater of $50 or 5% of the tax due. 

Special Taxation Districts

RTD (Regional Transportation District), RTA (Rural Transportation Authority), and other special district sales tax must be paid if the sales are made within the boundaries of the district. Applicable county, city, and other local jurisdictional taxes must be remitted on the Aviation Fuel Sales Tax Return, DR 1510 form. Scientific and Cultural Facilities District (SCFD) taxes are not dues on the sale of aviation fuel.

Flowage Fees

If sales or use tax is imposed on the sale, the fee is subject to state and/or jurisdictional taxes that apply to the sale. Jet fuel or gasoline used for aviation can be subject to a fuel flowage (in-plane) fee imposed by the airport. This fee is part of the retail purchase price.

Use Tax on Airplanes

When purchasing personal property, including airplanes, the buyer needs to file a Consumer Use Tax Return (DR 0252) if the seller did not collect and remit sales tax for the purchase. The Consumer Use Tax Return can also be filed using Revenue Online. For airplane purchases, the return and the use tax payment are due on or before the 20th of the month following the purchase. For more information, visit the Consumer Use Tax section of this website.

Visit the How to Look up Sales and Use Tax Rates web page for information on how to determine the applicable use tax rate, which would include state, county, municipal, and special district use tax.

Aviation Fuel Excise Taxes

Visit the Fuel Tax Licensing web page for information on licensing and reporting requirements.

Aviation Fuel Sales Tax

A sales tax license and a physical location are required for collecting aviation fuel sales tax.

Add or Close Locations

To add a new location to your account or to close an existing location, contact the Taxpayer Service helpline at 303-238-7378 or visit one of our Taxpayer Service Centers you can also send us a secure web message through Revenue Online. If you are requesting a new site, make sure you include the commence date of the site and a physical address. All account locations for aviation fuel sales tax must be a physical location. 

Excise taxes is due on fuel sales when it is not subject to sales tax, such as when the fuel is not sold for use in Part 121 or 135 aircraft. For jurisdictional codes and additional information, contact the Fuel Tax Unit by email or send a secure web message through Revenue Online.