How to Collect and Report Retail Marijuana Delivery Sales
A courier business that is licensed to deliver retail or medical marijuana and does not have licensing for its own store does not need a retail sales tax license. The store licensee is responsible for reporting and paying sales tax on its delivery sales.
A retail marijuana business is required to obtain a sales tax license for each retail marijuana store it operates (called a physical location). Additionally, a retail marijuana store that delivers retail marijuana to consumers, either by employees of the retail marijuana store or by a courier, must add a non-physical location to their account for each tax jurisdiction where retail marijuana is delivered.
Even if the retailer has a physical location in the same tax jurisdiction, a non-physical location is required for deliveries. A retail marijuana store that delivers to consumers must file separate returns for each physical location and each non-physical location. A separate Retail Marijuana Sales Tax return and Colorado Retail Sales Tax return, DR 0100 (See Forms in Number Order), are required for each physical and non-physical location. Self-collecting, home rule jurisdictions may establish their own regulation and should be contacted directly for more information about filing and remitting sales tax in their jurisdiction.
The Sales & Use Tax System (SUTS) is available to assist retailers with determining the tax jurisdiction(s) and calculating appropriate general sales tax rates for individual addresses. SUTS does not currently provide information on the state retail marijuana sales tax or any marijuana sales taxes imposed by local jurisdictions. If you need additional assistance with adding a non-physical location through your Revenue Online account, contact the Excise Tax Unit to request the addition of a non-physical site. Be sure to provide the jurisdiction code from SUTS to ensure the correct jurisdiction code is assigned. Visit the Add Locations to Your Account web page for additional information about physical and non-physical locations.
Before collecting and remitting tax on retail marijuana delivery sales, review the instructions on how to add a non-physical location to your Retail Sales Tax and Retail marijuana Sales Tax Returns for each jurisdiction where you made retail marijuana delivery sales.