Beginning July 1, 2009, retailers will charge state sales tax of 2.9 percent on all retail sales of cigarettes. Cigarettes are still exempt from city, county and special district sales tax.
Businesses will be required to account for state sales tax on cigarettes on the “Colorado Retail Sales Tax Return” (DR 0100). Changes will be made to the DR 0100 Part A Deductions and Part B Exemptions worksheets so that businesses can include the state sales tax on cigarettes in the calculations. The tax must be reported and remitted to the Colorado Department of Revenue starting with the July monthly return, due Aug. 20 or, for quarterly filers, the third quarter return due October 20.
This change to charging sales tax on cigarettes is the result of the passage and signing of House Bill 09-1342.
Taxpayers can learn more about this and other Colorado Department of Revenue state tax topics by visiting the Colorado Taxation Web site at www.TaxColorado.com.