Terminal Operators must be licensed in Colorado and provide their IRS terminal code. For information on licensing, visit the Fuel Licensing web page. A fuel license is location-specific for your operations. Each fuel license must be posted at the location of the business to which it applies.
Third party terminal operators are required to report transactions for receipts to the terminal by position holder, disbursements from the rack by position holder, and provide an inventory by position holder. The report is not a tax report, it rather provides accountability of fuel products moving through the terminal. A separate report is required for each terminal.
Colorado law requires that you keep true and complete records of your fuel tax returns, receipts, disbursements, and activities for at least three years after filing of returns.
Fuel used to power motor vehicles over the road is taxable. This includes farm or ranch vehicles driving over public access roads. For information about fuel uses that qualify for refunds, see the Exempt Use of Fuel page. The filing deadline for any given month is the 26th day of the following month, unless that day falls on a legal holiday or a weekend, then the following business day will be considered the legal deadline.
As a Fuel Distributor account holder, you will be required to file a monthly Fuel Distributor Tax Return through the Colorado Fuel Tracking System (COFTS), reporting all fuel distribution activities. A return must be filed every month, regardless of whether there is activity. If tax is due on the return, electronic payment of tax by Electronic Funds Transfer (EFT) is also mandatory.
To file electronically with Colorado Fuel Tracking System (COFTS), you must have a signed "COFTS Electronic Trading Partner Agreement" on file. For more information on filing returns, COFTS filing schedules and instructions for reporting various filing issue see the COFTS Information web page.
A Government entity may sell fuel to another governmental entity that has a fuel tax exemption certificate without having to be a licensed fuel distributor. The fuel sold must be used exclusively by the purchasing governmental entity in performing its governmental functions and activities. The government entity selling the fuel is required to keep a copy of the fuel tax exemption certificate for any entity that it provides fuel. If a governmental entity provides fuel to anyone other than another certificate holding governmental entity, it must obtain a fuel distributor license, remit any tax due and file monthly reports.
For fuel sales to the State of Colorado on fuel that is purchased and the Transportation Fee is paid to the carrier by the buyer, it is the responsibility of Colorado Fuel Distributors to report all fuel distribution activity on your monthly COFTS filing.
Fuel Distributor Tax Payment
By law, the fuel tax payments must be remitted via Electronic Funds Transfer (EFT). These payments must be filed and completed before 4:00 p.m. MT on the date the return is due. Fuel distributors can make payments online under the Electronic Payment page on Revenue Online, by telephone at 1-877-COLOEFT (1-877-265-6338), or by completing the Authorization for Electronic Funds Transfer for Tax Payments (DR 5785). For more information, visit the Electronic Funds Transfer (EFT) web page. The DR 5785 form can be printed from the Forms in Number Order web page.