Colorado Tobacco and Nicotine Products Taxes 2023 - 2024

Coloradans are familiar with cigarette taxes. But the state also levies taxes on e-cigarettes and other nicotine products. These taxes go to support health programs, including anti-tobacco campaigns.

All tobacco and nicotine products sold or consumed in Colorado are subject to a state tax. The tax is applied whether the product is consumed by vaporizing, chewing, smoking, dissolving, inhaling, snorting, sniffing, or otherwise. Distributors liable for the tax are required to obtain and maintain a nicotine products license and file returns on a quarterly basis. Distributors must also comply with federal PACT Act reporting and record-keeping requirements. Nicotine products include any substance containing nicotine that is consumed by smoking, chewing, dissolving, inhaling, sniffing, or absorbing through the skin. Distributors liable for the nicotine products tax must obtain a Colorado nicotine products distributor license and pay the excise tax on all sales of such products to retailers.

Licensed tobacco product distributors that transfer NPM-manufactured cigarettes and RYO within Colorado or export these products outside of the state must complete monthly a cigarette/RYO Reporting Form for Tracking Transfers and Exports of Non-Participating Manufacturer Cigarette Brands for Escrow Purposes (DR 1284) for DOR and the OAG. This report is used to assist in reconciling excise taxes owed on cigarette and RYO sales with the escrow funds that manufacturers must deposit into DOR. The return and tax remittance are due by the 20th day of the month following the reporting quarter for all reporting periods. Electronic filing is required.