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 - Cigarette Tax (§§ 39-28-101 — 39-28-506) › Part 1 - CIGARETTE TAX (§§ 39-28-101 — 39-28-116) › Section 39-28-102 - Licensing of wholesalers - rules - fines

(1)
It is unlawful for any wholesaler to sell or offer for sale in this state cigarettes without first obtaining a license therefor, granted and issued by the department, which license shall be in effect until June 30 following the date of issue, unless sooner revoked. Such licenses shall be granted only to such wholesalers who own or operate the places from which such sales are to be made, and, in case sales are made from two or more separate places by any such wholesaler, a separate license for each place of business shall be required. Such licenses shall be renewed only upon timely application and payment of the required fee prior to expiration. Such licenses may be transferred in the discretion of and pursuant to the rules adopted by the department. The license fee shall be ten dollars per year, and such license fees shall be credited to the general fund. Such license fees shall be reduced at the rate of two dollars and fifty cents for each expired quarter of the license year. The department shall, on reasonable notice and after a hearing, suspend or revoke the license of any wholesaler violating any provision of this article, and no license shall be issued to such wholesaler within a period of two years thereafter. The department may share information on the names and addresses of persons who purchased cigarettes for resale with the department of public health and environment and county and district public health agencies. The department shall refuse to issue a new or renewal wholesaler license, and shall revoke a wholesaler's license, if the wholesaler owes the state any delinquent taxes administered by the department or interest thereon pursuant to this title that have been determined by law to be due and unpaid, unless the wholesaler has entered into an agreement approved by the department to pay the amount due.
(1.3)
(a)
In addition to the requirements set forth in subsection (1) of this section, no license shall be issued to a wholesaler unless the wholesaler:
(I)
Has a current license issued pursuant to section
39-26-103
;
(II)
Provides evidence to the satisfaction of the executive director of the department demonstrating that the wholesaler will buy cigarettes from at least one manufacturer that is either part of the master settlement agreement or that places funds into a qualified escrow account pursuant to section
39-28-203 (2)
; and
(III)
Has filed with the department evidence of a surety bond issued by a company authorized to do business in this state in an amount equal to the wholesaler's anticipated total monthly purchase of stamps pursuant to section
39-28-104
for the benefit of the department. The amount of a wholesaler's anticipated total monthly purchase shall be determined solely in the discretion of the wholesaler. A wholesaler may file a replacement surety bond if the wholesaler's anticipated total monthly purchase of stamps changes after the wholesaler has been issued a license pursuant to this section.
(b)
In addition to the requirements set forth in subsection (1) of this section, no license shall be renewed unless a wholesaler:
(I)
Has a current license issued pursuant to section
39-26-103
;
(II)
Provides evidence to the satisfaction of the executive director of the department demonstrating that the wholesaler has bought and will continue to buy cigarettes from at least one manufacturer that is either part of the master settlement agreement or places funds into a qualified escrow account pursuant to section
39-28-203 (2)
; and
(III)
Has filed with the department evidence of a surety bond issued by a company authorized to do business in this state in an amount equal to the wholesaler's anticipated total monthly purchase of stamps pursuant to section
39-28-104
for the benefit of the department. The amount of a wholesaler's anticipated total monthly purchase shall be solely in the discretion of the wholesaler. For each consecutive preceding year that a wholesaler has not been delinquent in the payment of taxes imposed under this part 1, as determined by the executive director of the department, the amount of the bond required shall be reduced by twenty percentage points of the wholesaler's anticipated total monthly purchase of stamps. A wholesaler may file a replacement surety bond if the wholesaler's anticipated total monthly purchase of stamps changes after the wholesaler's license has been renewed pursuant to this section. A wholesaler that has not been delinquent in the payment of such taxes for five consecutive years shall be exempt from the requirement to file a surety bond with the department.
(1.5)
(Deleted by amendment, L. 2008, p. 182, § 1, effective August 5, 2008.)
(2)
Repealed.
L. 64: p. 821, § 2. C.R.S. 1963: § 138-8-2. L. 2001: Entire section amended, p. 579, § 4, effective May 30. L. 2004: Entire section amended, p. 246, § 1, effective August 4. L. 2005: (1) amended and (1.3) added, p. 717, § 2, effective June 1. L. 2008: (1) and (1.5) amended, p. 182, § 1, effective August 5. L. 2010: (1) amended, (HB 10 -1422), ch. 419, p. 2122, § 177, effective August 11.
Subsection (2)(b) provided for the repeal of subsection (2), effective July 1, 2008. (See L. 2004, p. 246 .)