C.R.S. § 39-28.6-107 — Returns and remittance of tax - civil penalty - rules

(1) Every distributor shall file a return with the department each quarter. The return, which must be upon forms prescribed and furnished by the department, must contain, among other things, the total amount of nicotine products purchased by the distributor during the preceding quarter and the tax due thereon. (2) Every distributor 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 one and one-tenth percent of any amount remitted to cover the distributor's expense in the collection and remittance of the tax. If any distributor is delinquent in remitting the tax, other than in unusual circumstances shown to the satisfaction of the executive director of the department, the distributor is not allowed to retain any amounts to cover his or her expense in collecting and remitting the tax and, in addition, the penalty imposed under section 39-28.6-111 (2)(b) applies. (3) The department shall require distributors to use electronic funds transfers to remit tax payments due pursuant to this article 28.6 to the department and shall require distributors to file tax returns electronically. The department may promulgate rules governing electronic payment and filing. (4) (a) Any person, firm, limited liability company, partnership, or corporation, other than a distributor, in possession of nicotine products for which taxes have not otherwise been remitted pursuant to this section is liable and responsible for the uncollected tax that is levied pursuant to section 39-28.6-103 on behalf of the distributor 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 nicotine 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, and the state treasurer shall credit fifteen percent of the proceeds to the tobacco tax enforcement cash fund created in section 39-28-107 (1)(b) and eighty-five percent to the old age pension fund created in section 1 of article XXIV of the state constitution. (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 nicotine products that fails to make a payment required pursuant to subsection (4)(a) of this section or who is a distributor by virtue of being the first person who receives the nicotine 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. The department shall remit any money received pursuant to this subsection (4)(b) to the state treasurer for deposit in the tobacco tax enforcement cash fund created in section 39-28-107 (1)(b). Source: L. 2020: Entire article added, (HB 20-1427), ch. 248, p. 1201, § 18, effective January 1, 2021.