2023 Colorado Revised Statutes › Title 39 - TAXATION (§§ 39-1-101 — 39-37-301) › SPECIFIC TAXES (§§ 39-20-101 — 39-37-301) › TOBACCO TAX (§§ 39-28-101 — 39-28.6-112) › Article 28.5 - Tax on Tobacco Products (§§ 39-28.5-101 — 39-28.5-112) › Section 39-28.5-106 - Returns and remittance of tax - civil penalty

(1)
Every distributor and remote retail seller shall file a return with the department each quarter. The return, which shall be upon forms prescribed and furnished by the department, shall contain, among other things, the total amount of tobacco products purchased by the distributor or remote retail seller during the preceding quarter and the tax due thereon.
(2)
Every distributor and remote retail seller shall file a return with the department by the twentieth day of the month following the month reported and shall therewith remit the amount of tax due, less three and one-third percent of any sum so remitted that consists of tax collected after July 1, 2005, but before January 1, 2021, and less one and six-tenths percent of any sum so remitted that consists of tax collected on or after January 1, 2021, to cover the distributor's or remote retail seller's expense in the collection and remittance of said tax; except that no part of the tax imposed pursuant to section
39-28.5-102.5
and section 21 of article X of the state constitution shall be subject to the discount provided for in this subsection (2). If any distributor or remote retail seller is delinquent in remitting said tax, other than in unusual circumstances shown to the satisfaction of the executive director of the department, the distributor or remote retail seller shall not be allowed to retain any amounts to cover his or her expense in collecting and remitting said tax, and in addition the penalty imposed under section
39-28.5-110(2)(b)
shall apply.
(3)
Repealed.
(4)
(a)
Any person, firm, limited liability company, partnership, or corporation, other than a distributor or remote retail seller, in possession of tobacco products for which taxes have not otherwise been remitted pursuant to this section shall be liable and responsible for the uncollected tax that is levied pursuant to section
39-28.5-102
and section 21 of article X of the state constitution on behalf of the distributor or remote retail seller who failed to pay the tax. The person or entity shall make the payment to the department within thirty days of first taking possession of the tobacco product. The department shall establish a form to be used for remittance of the payment. The department shall remit the proceeds it receives pursuant to this subsection (4)(a) to the state treasurer for distribution as follows:
(I)
For all moneys received and collected in payment of the tax imposed pursuant to section
39-28.5-102
, fifteen percent shall be credited to the tobacco tax enforcement cash fund created in section
39-28-107(1)(b)
, and eighty-five percent shall be credited to the old age pension fund; and
(II)
All moneys received and collected in payment of the tax imposed pursuant to section
39-28.5-102.5
shall be credited to the tobacco tax cash fund created in section
24-22-117
, C.R.S.
(b)
The executive director of the department may impose a civil penalty on any person, firm, limited liability company, partnership, or corporation in possession of tobacco products that fails to make a payment required pursuant to paragraph (a) of this subsection (4) or who is a distributor by virtue of being the first person who receives the tobacco products in the state and who fails to make a payment required pursuant to this section in an amount that does not exceed five hundred percent of such payment. Any moneys received pursuant to this paragraph (b) shall be remitted to the state treasurer for deposit in the tobacco tax enforcement cash fund created in section
39-28-107(1)(b)
.
Amended by 2023 Ch. 142,§ 6, eff. 1/1/2024.
Amended by 2020 Ch. 248, § 14, as passed by voters in the 11/3/2020 election in Proposition EE, eff. 1/1/2021.
Amended by 2019 Ch. 395, § 7, eff. 8/2/2019.
L. 86: Entire article added, p. 1115, § 13, effective July 1. L. 87: (2) amended, p. 1467, § 3, effective April 16. L. 2003: (2) amended, p. 2637, § 5, effective June 5. L. 2005: (2) amended and (3) added, p. 910, § 10, effective June 2; (2) amended and (3) added, p. 925, § 11, effective June 2. L. 2009: (4) added, (HB 09-1173), ch. 2018, p. 2018, § 6, effective August 5. L. 2017: (3) amended, (HB 17 -1136), ch. 238, p. 238, § 5, effective March 23. L. 2019: (3) repealed, (HB 19-1256), ch. 3515, p. 3515, § 7, effective August 2. L. 2020: (2) amended, (HB 20-1427), ch. 1195, p. 1195, § 14, effective 1/1/2021.
Section 27(2) of chapter 248 (HB 20-1427), Session Laws of Colorado 2020, provides that changes to this section take effect on the date of the governor's proclamation or January 1, 2021, whichever is later, only if, at the November 2020 statewide election, a majority of voters approve the ballot issue referred in accordance with section 39-28-401. The ballot issue, referred to the voters as proposition EE, was approved on November 3, 2020, and was proclaimed by the Governor on December 31, 2020. The vote count for the measure was as follows:
FOR: 2,134,608
AGAINST: 1,025,182
2023 Ch. 142, was passed without a safety clause. See Colo. Const. art. V, § 1(3).
For the legislative declaration contained in the 2005 act amending subsection (2) and enacting subsection (3), see section 1 of chapter 241, Session Laws of Colorado 2005.