Retail Marijuana Sales Tax Return
Businesses that sell retail marijuana to the public, also known as recreational marijuana, are required to file the Retail Marijuana Sales Tax Return electronically via Revenue Online; the sales tax rate is 15%. Only retail marijuana and retail marijuana-infused products should be included on the Retail Marijuana Sales Tax Return. A return is required for each retail marijuana store location. File using the same Colorado Account Number listed on your retail sales tax license.
The marijuana license types that are required to collect and report marijuana sales tax are "retail marijuana stores" and "retail marijuana hospitality &sales" establishments. Both of these types of businesses sell retail marijuana to consumers and meet the definition of a "retail marijuana store in 39-28.8-101(12) C.R.C. Consumption on-premises is allowed at the retail marijuana hospitality & sales establishment. For the purpose of retail marijuana taxation, both have the same filing requirements and are included in the term "marijuana stores".
Colorado Retail Sales Tax Return (DR 0100)
In addition to the retail marijuana sales tax return, all marijuana businesses must file the Colorado Retail Sales Tax Return (DR 0100). Retail marijuana is exempt from the state sales tax and some local taxes. See the Colorado Sales/Use Tax Rates Publication, DR 1002, for a complete list of local governments that allow exemption Q. To take the state exemption, businesses 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. This exemption carries over to the return, line 3b, column 1.
For more detailed instructions, see our guide on How To Claim the Retail Marijuana Exemption on Your Sales Tax Return.
"Retail Marijuana" and "Retail Marijuana Products" are defined in statute and do not include medical marijuana or 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 sold are subject to the 2.9% state sales tax.
Medical marijuana and medical marijuana-infused products are also reported on form DR 0100. The sales tax for medical marijuana sales must be filed using the Colorado Account Number that corresponds to the sales tax license for the medical marijuana center. Sales tax for medical marijuana can also be filed electronically via Revenue Online.
For more information, review FYI Sales 93: Sales Tax on Marijuana.
Return and payment are due the 20th day of the month following the reporting period. If the 20th day falls on a weekend or holiday, the due date is the next business day. 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 non-filer notices and penalty assessments.
State Sales Tax
The state sales tax rate on tangible personal property is 2.9%. These taxes are charged on the final consumer purchase price. The tax applies to medical marijuana and medical marijuana products. Retail marijuana and retail marijuana products are exempt from this state sales tax.
State Retail Marijuana Sales Tax Rate
There is a 15% retail marijuana sales tax on all sales of retail marijuana and retail marijuana-infused products in the state charged on the final consumer purchase price.
Local and Special Districts Tax Rates
Visit the Local Government Sales Tax web page for more information on the local sales tax rates for retail products not subject to retail marijuana sales tax.
Reporting Delivery Sales
If a store delivers retail marijuana to customers, the taxpayer with the retail marijuana store license is obligated to report and pay the marijuana sales tax. The sales tax rate is based on the physical address of the customer receiving the product, not the store itself.
For each jurisdiction where a store delivers, a non-physical site must be created for the recipient's location. Delivery sales must be reported on a separate site from in-store sales even when they occur in the same city and county. For more information on reporting delivery sales, go to Tax.Colorado.gov/retail-marijuana-delivery-sales-tax.
Review the Marijuana Taxes Guidance Publications for more information.