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Marijuana Tax | Frequently Asked Questions

1. Where can I find information regarding whether the sale of marijuana has been allowed by my city or county?

Also, the Colorado Department of Revenue - Marijuana Enforcement Division (MED) has additional information under "Local Authorities Allowing Regulated Marijuana Businesses" on the Marijuana Business License web page. Please note that this list is not comprehensive, rather, it is based on information provided to the Department by local authorities.

2. What is contract price?

The Contract Price is defined as "the invoice price charged by a retail marijuana cultivation facility to each (unaffiliated retail marijuana business)licensed purchaser for each sale or transfer of unprocessed retail marijuana, exclusive of any tax that is included in the written invoice price, and exclusive of any discount or other reduction."

3. Where can I find the current and prior period Average Market Rate (AMR)?

Visit the Marijuana Average Market Rate (AMR) web page for AMR information.

4. How do I file my sales and/or excise tax returns with the Department?

5. Where do I find instructions for how to complete the Retail Marijuana Excise Tax Return?

Visit the Marijuana Excise Tax web page for information on rates and how to file your tax returns.

6. Am I required to obtain a sales tax license for my marijuana business?

Please see the Marijuana Sales Tax License web page for information on the types of license(s) you may need to register with the Colorado Department of Revenue Taxation Division.

7. Where can I find information on how to file my Retail Marijuana Sales Tax Return?

Visit the Marijuana Sales Tax web page for information on rates and how to file your tax returns.

8. How do I know which categories to report my products in on the AMR section of the Retail Marijuana Excise Tax Return?

You should report in the same categories on your Retail Marijuana Excise Tax Return as you reported in METRC.

These categories are described in the FYI Excise 23 Guidance Publication. For more information on how to report specific products in METRC, contact the Marijuana Enforcement Division.

9. How do I file a refund for overpaid tax?

For information on how to claim a refund for marijuana taxes, visit the File the Sellers Claim for Refund web page. To file for a refund, please complete and submit the Claim for Refund, DR 0137, through Revenue Online or see the Forms in Number Order page for the paper form.

10. Where can I find out more information about the total amount of marijuana tax collected?

For more information on marijuana tax data, including local government tax distributions (from the special sales tax), please review the information provided at CDOR.Colorado.gov/data-and-reports/marijuana-data. Note that local jurisdictions may apply additional taxes, which the Department does not collect or report on.

11. How is marijuana tax revenue spent by the State of Colorado?

The Department of Revenue provides marijuana tax revenue data at CDOR.Colorado.gov/data-and-reports/marijuana-data.

12. How do I apply or complete my application for medical marijuana card?