Untaxed Tobacco Products
Anyone in possession of tobacco products on which the excise tax is not paid by a Colorado licensed distributor must pay the Colorado tobacco products tax within 30 days of receiving the product. This includes tobacco products such as cigars and pipe tobacco ordered on the Internet, by mail or by telephone.
Payment can be made with the Tobacco Products Tax Return for Non-Licensed Distributors (DR 0225). Colorado statutes state that failure to pay the excise tax within 30 days will result in a 500% penalty, plus tax and interest. Tobacco products are also subject to sales or use taxes. Payment of the tax does NOT change the existing requirement that the first person or entity to bring any tobacco product into Colorado must be licensed as a tobacco distributor.