Colorado § 39-28.5-107 When credit may be obtained for tax paid - repeal

Colorado Statutes

§ 39-28.5-107 — When credit may be obtained for tax paid - repeal

Colorado § 39-28.5-107

Title 39Taxation

Art.Tax on Tobacco Products

This text of Colorado § 39-28.5-107 (When credit may be obtained for tax paid - repeal) is published on Counsel Stack Legal Research, covering Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Colo. Rev. Stat. § 39-28.5-107 (2026).

Text

(1)Where tobacco products, upon which the tax imposed by this article 28.5 has been reported and paid, are shipped or transported by the distributor to retailers without the state to be sold by those retailers, are shipped or transported by the distributor to a consumer without the state on or after January 1, 2021, or are returned to the manufacturer by the distributor or destroyed by the distributor, credit of such tax may be made to the distributor in accordance with regulations prescribed by the department.

(2)(a) Prior to January 1, 2025, credit shall be given by the department to a distributor or remote retail seller for all taxes levied pursuant to this article 28.5 and section 21 of article X of the state constitution and paid pursuant to the provisions of this article

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(1) Where
tobacco products, upon which the tax imposed by this article 28.5 has been
reported and paid, are shipped or transported by the distributor to retailers without
the state to be sold by those retailers, are shipped or transported by the distributor
to a consumer without the state on or after January 1, 2021, or are returned to the
manufacturer by the distributor or destroyed by the distributor, credit of such tax
may be made to the distributor in accordance with regulations prescribed by the
department.

(2) (a) Prior to January 1, 2025, credit shall be given by the department to a
distributor or remote retail seller for all taxes levied pursuant to this article 28.5
and section 21 of article X of the state constitution and paid pursuant to the
provisions of this article 28.5 that are bad debts. Such credit shall offset taxes
levied pursuant to this article 28.5 and section 21 of article X of the state
constitution and paid pursuant to the provisions of this article 28.5 only. No credit
shall be given unless the bad debt has been charged off as uncollectible on the
books of the distributor or remote retail seller. Subsequent to receiving the credit, if
the distributor or remote retail seller receives a payment for the bad debt, the
distributor or remote retail seller shall be liable to the department for the amount
received and shall remit this amount in the next payment to the department under
section 39-28.5-106.

(b) Any claim for a bad debt credit under this subsection (2) shall be
supported by all of the following:

(I) A copy of the original invoice issued by the distributor or remote retail
seller;

(II) Evidence that the tobacco products described in the invoice were
delivered to the person who ordered them; and

(III) Evidence that the person who ordered and received the tobacco
products did not pay the distributor or remote retail seller for them and that the
distributor or remote retail seller used reasonable collection practices in
attempting to collect the debt.

(c) If credit is given to a distributor or remote retail seller for a bad debt, the
person who ordered and received the tobacco products but did not pay the
distributor or remote retail seller for them shall be liable in an amount equal to the
credit for the tax imposed in this article 28.5 on the tobacco products. Subsequent
to receiving the credit, if the distributor or remote retail seller receives a payment
for the bad debt and the distributor or remote retail seller makes a payment to the
department, the amount of taxes owed by such person shall be reduced by the
amount paid to the department.

(d) As used in this subsection (2), bad debt means the taxes attributable to
any portion of a debt that is related to a sale of tobacco products subject to tax
under this article 28.5, that is not otherwise deductible or excludable, that has
become worthless or uncollectible in the time after the tax has been paid pursuant
to section 39-28.5-106, and that is eligible to be claimed as a deduction pursuant to
section 166 of the federal Internal Revenue Code of 1986, as amended. A bad debt
shall not include any interest on the wholesale price of tobacco products,
uncollectible amounts on property that remain in the possession of the distributor
or remote retail seller until the full purchase price is paid, expenses incurred in
attempting to collect any account receivable or any portion of the debt recovered,
an account receivable that has been sold to a third party for collection, or
repossessed property.

(e) This subsection (2) is repealed, effective December 31, 2028.

Legislative History

Source: L. 86: Entire article added, p. 1115, � 13, effective July 1. L. 2004: Entire section amended, p. 266, � 2, effective August 4. L. 2005: (2)(a) amended, p. 910, � 11, effective June 2; (2)(a) amended, p. 926, � 12, effective June 2. L. 2015: (1) amended, (HB 15-1301), ch. 336, p. 1364, � 3, effective June 5. L. 2020: (1) amended, (HB 20-1427), ch. 248, p. 1196, � 15, effective January 1, 2021. L. 2023: (2)(a), (2)(b)(I), (2)(b)(III), (2)(c), and (2)(d) amended, (HB 23-1015), ch. 142, p. 610, � 7, effective January 1, 2024. L. 2024: (2)(a) amended and (2)(e) added, (HB 24-1036), ch. 373, p. 2533, � 28, effective August 7.