§ 39-28.5-106 — Returns and remittance of tax - civil penalty

Colorado § 39-28.5-106

• Jurisdiction: Colorado
• Title 39: Taxation
• Art.: Tax on Tobacco Products

Text

(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(3) Repealed.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).

Legislative History

Source: 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. 372, p. 2018, � 6, effective August 5. L. 2017: (3) amended, (HB 17-1136), ch. 76, p. 238, � 5, effective March 23. L. 2019: (3) repealed, (HB 19-1256), ch. 395, p. 3515, � 7, effective August 2. L. 2020: (2) amended, (HB 20-1427), ch. 248, p. 1195, � 14, effective January 1, 2021. L. 2023: (1), (2), and IP(4)(a) amended, (HB 23-1015), ch. 142, p. 609, � 6, effective January 1, 2024