Internet/Mail Orders | Paying Tax Due
Consumers who bring nicotine products into Colorado without the Colorado nicotine products excise tax paid must file the Nicotine Products Tax Return for Unlicensed Activity, DR 0226, (see Forms in Number Order), and make their payment, with the return, within 30 days of receiving the nicotine products. To file the return electronically, send the completed DR 0226 form to DOR_ExciseTax@state.co.us, and payment instructions will follow. To file and pay by mail, follow the instructions for submission and payment stated on the form.
To avoid being responsible for the excise tax, do not purchase nicotine products from unlicensed sellers. Only purchase nicotine products from a licensed Colorado retail establishment or from a licensed nicotine products distributor. Due to confidentiality constraints, we are currently unable to provide a list of Colorado nicotine products licensees.
Colorado statute, C.R.S 39-28.6-107(4)(a), states that any person, firm, limited liability company, partnership, or corporation, other than a distributor, in possession of nicotine products, for which nicotine product taxes have not been paid to the Department, is liable and responsible for the uncollected nicotine products tax on behalf of the distributor who failed to pay the tax. The person or entity is required to make the payment to the Department within 30 days of first taking possession of the nicotine product.
Penalty for Not Paying the Tax
If the Department receives information from a seller that untaxed nicotine products were sold to an individual or retailer in Colorado more than 30 days prior, statute allows for a 500% penalty, plus tax and interest.
Sales/Use Tax
The consumer is also responsible for filing and paying the use tax due on tobacco products if sales tax was not paid by the seller. Go to Tax.colorado.gov/consumer-use-tax for more information.