(1) (a) An excise
tax at the rate of 8.0 cents per gallon, or the same per unit volume tax applied to
metric measure, on all malt liquors and hard cider, 7.33 cents per liter on all vinous
liquors except hard cider, and 60.26 cents per liter on all spirituous liquors is
imposed, and the taxes shall be collected on all such respective beverages, not
otherwise exempt from the tax, sold, offered for sale, or used in this state; except
that, upon the same beverages, only one such tax shall be paid in this state. The
manufacturer thereof, the holder of a winery direct shipper's permit, or the first
licensee receiving alcohol beverages in this state if shipped from without the state,
shall be primarily liable for the payment of any tax or tax surcharge imposed
pursuant to this section; but, if the beverage is transported by a manufacturer or
wholesaler to a point outside of the state and disposed of there, then the
manufacturer or wholesaler, upon the filing with the state licensing authority of a
duplicate bill of lading, invoice, or affidavit showing such transaction, shall not be
subject to the tax provided in this section on such beverages, and, if such tax has
already been paid, it shall be refunded to said manufacturer or wholesaler. For
purposes of this section, manufacturer includes brew pub, distillery pub, and
vintner's restaurant licensees.
(b) The department shall promulgate rules concerning the excise tax applied
to powdered alcohol at 60.26 cents per liter for the amount of liters of water
suggested to be added by the manufacturer's packaging.
(c) (I) Effective July 1, 2000, a wine development fee at the rate of 1.0 cent
per liter is imposed on all vinous liquors except hard cider sold, offered for sale, or
used in this state. An amount equal to one hundred percent of the wine
development fee collected pursuant to this subsection (1)(c)(I) shall be transferred
from the general fund to the Colorado wine industry development fund created in
section 35-29.5-105. Such transfers shall be made by the state treasurer as soon as
possible after the twentieth day of the month following the collection of such wine
development fee.
(II) In addition to the excise tax imposed pursuant to subsection (1)(a) of this
section, an additional excise tax surcharge at the rate of 5.0 cents per liter for the
first nine thousand liters, 3.0 cents per liter for the next thirty-six thousand liters,
and 1.0 cent per liter for all additional amounts, is imposed on all vinous liquors
except hard cider produced by Colorado licensed wineries and sold, offered for
sale, or used in this state. An amount equal to one hundred percent of the excise
tax surcharge collected pursuant to this subsection (1)(c)(II) shall be transferred
from the general fund to the Colorado wine industry development fund created in
section 35-29.5-105. Such transfers shall be made by the state treasurer as soon as
possible after the twentieth day of the month following the collection of such
excise tax surcharge.
(d) (I) An excise tax of ten dollars per ton of grapes is imposed upon all
grapes of the vinifera varieties or other produce used in the production of wine in
this state by a licensed Colorado winery or vintner's restaurant, whether true or
hybrid. The excise tax imposed pursuant to this subsection (1)(d) shall be paid to the
department by the licensed winery or vintner's restaurant at the time of purchase of
the product by the winery or vintner's restaurant or of importation of the product,
whichever is later. An amount equal to one hundred percent of such excise tax shall
be transferred from the general fund to the Colorado wine industry development
fund created in section 35-29.5-105. Such transfers shall be made by the state
treasurer as soon as possible after the twentieth day of the month following the
collection of such excise tax.
(II) The excise tax imposed in accordance with this subsection (1)(d) does not
apply to produce used in the production of hard cider.
(e) The policy of this state is that alcoholics and intoxicated persons may not
be subjected to criminal prosecution because of their consumption of alcohol
beverages, but rather should be afforded a continuum of treatment in order that
they may lead normal lives as productive members of society. The general
assembly finds that the cost of implementing a statewide treatment plan is greater
than originally estimated. By increasing the excise tax on alcohol beverages in
Colorado, it is the intent of this general assembly that the increased revenues
derived from this subsection (1) be viewed as one of the sources of funding for the
future development of alcoholism treatment programs under the statute enacted in
1973 and for the payment of other related direct and indirect costs caused by the
consumption of alcohol beverages.
(2) The state licensing authority shall make and publish such rules to secure
and enforce the collection and payment of the tax as it may deem proper if the
rules are not inconsistent with the provisions of this article 3.
(3) Except as provided in subsection (1)(d) of this section, the excise taxes
and excise tax surcharges provided for in this section shall be paid to the
department upon the filing of the return provided for in subsection (4) of this
section and shall be delivered to the department on or before the twentieth day of
the month following the month in which such alcohol beverages are first sold in this
state. As used in this subsection (3), first sold means the sale or disposal that
occurs when a licensed wholesaler sells, transfers, or otherwise disposes of a
product, when a manufacturer sells to a licensed wholesaler or a consumer, or
when a holder of a winery direct shipper's permit ships to a personal consumer in
this state.
(4) Each licensed manufacturer and wholesaler of alcohol beverages within
this state shall file, on or before the twentieth day of each month, an exact, verified
return with the state licensing authority showing for the preceding calendar month
the quantities of alcohol beverages:
(a) Constituting the licensee's beginning and ending inventory for the month;
(b) Manufactured by the licensee in this state;
(c) Shipped to the licensee from within this state and received by the
licensee in this state;
(d) Shipped to the licensee from outside this state and received by the
licensee in this state;
(e) Sold or disposed of by the licensee to persons or purchasers in this state;
(f) Sold or disposed of by the licensee to persons or purchasers outside this
state, separately indicating those sales or transactions of alcohol beverages to
which the excise tax is not applicable; and
(g) For persons licensed pursuant to section 44-3-402 (3), 44-3-403 (2)(a), or
44-3-417 (1)(b), a separate report of vinous or malt liquors, as applicable, that were
manufactured or inventoried in, or transferred from, an alternating proprietor
licensed premises.
(5) Each holder of a winery direct shipper's permit under section 44-3-104
shall file, on or before the twentieth day of each calendar month, an exact, verified
return with the state licensing authority showing for the preceding calendar month
the quantities of vinous liquor shipped to personal consumers in this state.
(6) The return, on forms prescribed by the state licensing authority, shall
also show the amount of excise tax payable, after allowances for all proper
deductions, for alcohol beverages sold by the manufacturer, wholesaler, or holder
of a winery direct shipper's permit in this state and shall include any additional
information as the state licensing authority may require for the proper
administration of this article 3. The payment of the excise tax provided for in this
section, in the amount disclosed by the return, shall accompany the return and shall
be paid to the department. Each manufacturer, wholesaler, or holder of a winery
direct shipper's permit required to file a return shall keep complete and accurate
books and records, accounts, and other documents as may be necessary to
substantiate the accuracy of his or her return and the amount of excise tax due and
shall retain such records for a period of three years.
(7) The state licensing authority, after public hearing of which the licensee
shall have due notice as provided in this article 3, shall suspend or revoke any
license or winery direct shipper's permit issued pursuant to this article 3 for a
failure to pay any excise tax required by this article 3 and may suspend or revoke
the license or permit for a violation of or failure to comply with the rules
promulgated by the authority.
(8) If the excise tax is not paid when due, there shall be added to the amount
of the tax as a penalty a sum equivalent to ten percent thereof and, in addition
thereto, interest on the tax and a penalty at the rate of one percent a month or
fraction of a month from the date the tax became due until paid. Nothing in this
section shall be construed to relieve any person otherwise liable from liability for
payment of the excise tax.
(9) (a) The department shall make a refund or allow a credit to the
manufacturer, the wholesaler, or the holder of a winery direct shipper's permit, as
the case may be, of the amount of the excise tax paid on alcohol beverages sold in
this state when, after payment of the excise tax, the alcohol beverages are
rendered unsalable by reason of destruction or damage upon submission of
evidence satisfactory to the state licensing authority that the excise tax has
actually been paid. Such refund or credit shall be made by the department within
sixty days after the submission of evidence satisfactory to the department. No
refund or credit is allowed after December 31, 2025.
(b) This subsection (9) is repealed, effective December 31, 2030.
(10) (a) In order to economize and to simplify administrative procedures, the
state licensing authority may authorize a procedure whereby a manufacturer or
wholesaler of alcohol beverages or holder of a winery direct shipper's permit
entitled by law to a refund of the tax provided in this section may instead receive a
credit against the tax due on other sales by claiming said credit on the next month's
return and attaching a duplicate bill of lading, invoice, or affidavit showing such
transaction.
(b) To the extent and so long as federal law precludes this state from
collecting its excise tax on vinous and spirituous liquors sold and delivered on
ceded federal property, any manufacturer or wholesaler of such liquors making any
such sales and deliveries on such federal property within the boundaries of this
state may receive a refund of or a credit for the excise tax paid to this state on such
liquors.