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 tax 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 the 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 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 Licensing Requirements in the Distributors section above 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 Nicotine Products Tax Return for Unlicensed Activity (DR 0226) and remit, with payment, within 30 days of receipt of the product.
Signs & Warning Posters
Contact the Department of Revenue Tobacco Enforcement Division at (303) 205-2300 for more information.