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 39-28.5-105 - Books and records to be preserved

(1)
Every distributor shall keep at each licensed place of business complete and accurate records for that place of business, including itemized invoices of tobacco products held, purchased, manufactured, brought in or caused to be brought in from without the state, or shipped or transported to retailers in this state, and of all sales of tobacco products made, except sales to the ultimate consumer within the state.
(2)
These records shall show the names and addresses of purchasers, the inventory of all tobacco products on hand, and other pertinent papers and documents relating to the purchase, sale, or disposition of tobacco products.
(3)
When a licensed distributor sells tobacco products exclusively to the ultimate consumer within the state at the address given in the license, no invoice of those sales shall be required, but itemized invoices shall be made of all tobacco products transferred to other retail outlets owned or controlled by that licensed distributor. All books, records, and other papers and documents required by this section to be kept shall be preserved for a period of at least three years after the date of the documents, unless the department, in writing, authorizes their destruction or disposal at an earlier date.
(4)
(a)
Every retailer that is not also a licensed distributor shall keep at its place of business complete and accurate records to show that all tobacco products received by the retailer were purchased from a licensed distributor. The retailer shall provide a copy of such records to the department if so requested. The department may establish the acceptable form of such records.
(b)
Any expenses incurred by the department related to enforcing paragraph (a) of this subsection (4) shall be paid from the tobacco settlement defense account, created in section
24-22-115(2)(a)
, C.R.S., for the state fiscal year 2009-10, and from the tobacco tax enforcement cash fund created in section
39-28-107(1)(b)
, for each state fiscal year thereafter.
(5)
Every remote retail seller shall keep complete and accurate records necessary for the determination of the correct tax liability, including itemized invoices to validate the actual costs paid by the remote retail seller for all cigars and pipe tobacco offered in remote retail sales to the consumer within this state.
Amended by 2023 Ch. 142,§ 5, eff. 1/1/2024.
Amended by 2020 Ch. 248, § 13, as passed by voters in the 11/3/2020 election in Proposition EE, eff. 1/1/2021.
L. 86: Entire article added, p. 1115, § 13, effective July 1. L. 2009: (4) added, (HB 09-1173), ch. 372, p. 2017, § 5, effective August 5. L. 2020: (1) and (3) amended, (HB 20-1427), ch. 1195, p. 1195, § 13, 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).