As part of the Master Settlement Agreement (MSA) and the Colorado Tobacco Escrow Funds Act, the Department of Revenue (DOR) must compile information about cigarettes and roll-your-own tobacco (RYO) sold in Colorado.
DOR uses the information to reconcile excise taxes owed on cigarette and roll-your-own tobacco (RYO) sales.
The Office of the Attorney General uses the information to reconcile the amount of escrow funds tobacco product manufacturers need to deposit each year.
Cigarette Sales Report
Cigarette and RYO distributors who sell non-participating manufacturer (NPM) manufactured cigarettes and affix a cigarette tax stamp, who sell NPM manufacturer RYO or who sell tax-exempt NPM cigarettes or RYO in Colorado must fill out and submit monthly to DOR a Licensed Distributor Reporting Form for Cigarette Sales on Non-Participating Manufacturer Brand (DR 1285).
- The distributor lists by brand family the total number of sticks of cigarettes and equivalent stick count for RYO sold in Colorado during the sales month.
- DOR uses the report to confirm the amount of excise tax due on cigarette and RYO sales.
This reporting form is due by the 20th of the month following the close of the reporting month.
Cigarette Transfer/Export Report
Cigarette and RYO distributors who transfer NPM cigarettes and RYO within Colorado or export NPM cigarettes and RYO outside of Colorado must fill out and submit monthly a Licensed Distributor Reporting Form for Tracking Transfers and Exports of Non-Participating Manufacturer Cigarette Brands for Escrow Purposes (DR 1284) to the Colorado Office of the Attorney General (OAG).
- The distributor lists by brand family the total number of sticks of cigarettes and total number of ounces and equivalent stick count for RYO that was transferred within the state or exported outside the state.
- The OAG uses this information to help reconcile escrow fund amounts due each year.
The reporting form is due by the 20th of the month following the close of the reporting month.
This reporting form is used strictly for tracking tobacco product to assist the OAG and manufacturers in confirming the number of sticks, including RYO converted to sticks, on which the escrow is due. It is not used for tracking taxes paid or owed and, as such, is not a tax document.
Non-NPM Sales Exemption Report
Licensed distributors who do not sell NPM manufactured cigarettes in Colorado, who purchase stamped NPM manufactured cigarettes from Colorado licensed distributors or who sell in Colorado only tobacco products not subject to the MSA must fill out and submit annually to DOR a Tobacco Distributor’s Certification for Exemption MSA/Non-Participating Manufacturer Brands (DR 1286).
This form shows DOR and the OAG why a licensed distributor will not be required to file a DR 1284 or DR 1285 monthly.
Only fire-safe cigarettes may be sold or offered for sale in the State of Colorado, or sold or offered for sale to persons located in the State of Colorado. Click here to see the Fire-Safe Cigarettes page.