A retailer who purchases excise-tax paid nicotine products for sale to the end consumer must have a retail sales tax license when purchasing product from a licensed Colorado nicotine distributor and will collect and file the sales tax with the Department of Revenue. The retailer is NOT required to have a nicotine products distributor license.
If the retailer has a business location (site) in a home-rule city, the retailer is required to contact that city to comply with the city's licensing and tax requirements. See publication DR 1002 for a list of Colorado home-rule jurisdictions.
- If your business purchases nicotine products from a Colorado licensed nicotine products distributor who already paid the Colorado nicotine products excise tax, then you do not need to apply for a nicotine products distributor license. See the Nicotine Products web page for more on the definition of nicotine products.
- If your business purchases nicotine products from an unlicensed distributor, then you are required to obtain a Colorado nicotine products distributor license, and are responsible for the nicotine products excise tax due. Refer to the Nicotine Products Distributors web page for more information on obtaining a nicotine products distributor license.
All retailers selling cigarettes, tobacco products, and nicotine products within Colorado are now required to obtain a Cigarette, Tobacco Product, or Nicotine Product Retailer License through the Liquor and Tobacco Enforcement Division. Apply for the license at SBG.Colorado.gov.
Retailers must charge the state sales tax on all retail sales of nicotine products and file a Colorado sales tax return. All sales of nicotine products are also subject to county, city and special district sales taxes. Visit the Sales & Use Tax section of this website to learn more.
Excise Tax Due for Orders Made Over the Internet or by Mail-Order
Complete the Nicotine Products Tax Return for Unlicensed Activity, DR 0226 (see Forms & Instructions | Cigarette, Nicotine Products, & Tobacco Products Tax), and submit, with payment, within 30 days of receipt of the product. 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
Signs & Warning Posters
Contact the Liquor and Tobacco Enforcement Division for an information packet.