2022 Colorado Code
Title 39 - Taxation
Article 28.5 - Tax on Tobacco Products
§ 39-28.5-101. Definitions

As used in this article 28.5, unless the context otherwise requires:

1. "Delivery sale" means the sale of tobacco products to a consumer in this state when:
   1. The consumer submits an order for the tobacco products to a delivery seller for sale by means other than an over-the-counter sale on the delivery seller's premises, including, but not limited to, telephone or other voice transmission, the mail or other delivery service, or the internet or other online service; and
   2. The tobacco products are delivered when the seller is not in the physical presence of the consumer when the consumer obtains possession of the tobacco products by use of a common carrier, private delivery service, mail, or any other means.

   (1.2) "Delivery seller" means a person located outside of this state who makes delivery sales.

   (1.4) "Department" means the department of revenue.

   (1.5) "Distributing subcontractor" means every person, firm, limited liability company, partnership, or corporation who purchases tobacco products from a distributor for resale to a retailer in this state.

2. "Distributor" means every person who:
   1. First receives tobacco products in this state;
   2. Sells tobacco products in this state and is primarily liable for the tobacco products tax on such products;
   3. First sells or offers for sale in this state tobacco products imported into this state from any other state or country; or
   4. Is a delivery seller.

3. "Manufacturer's list price" means the invoice price for which a manufacturer or supplier sells a tobacco product to a distributor exclusive of any discount or other reduction.

   (3.3) "Modified risk tobacco product" means any tobacco product for which the secretary of the United States department of health and human services has issued an order authorizing the product to be commercially marketed as a modified risk tobacco product in accordance with 21 U.S.C. sec. 387k, or any successor section.

   (3.7) "Moist snuff" means any finely cut, ground, or powdered tobacco that is not intended to be smoked but does not include any finely cut, ground, or powdered tobacco that is intended to be placed in the nasal cavity.

4. "Sale" means any transfer, exchange, or barter, in any manner or by any means whatsoever, for a consideration, including all sales made by any person. The term includes:
   1. A gift by a person engaged in the business of selling tobacco products, for advertising, as a means of evading the provisions of this article or for any other purposes whatsoever; and
   2. A delivery sale.

5. "Tobacco products" means cigars, cheroots, stogies, periques, granulated, plug cut, crimp cut, ready rubbed, and other smoking tobacco, snuff, snuff flour, cavendish, plug and twist tobacco, fine-cut and other chewing tobaccos, shorts, refuse scraps, clippings, cuttings and sweepings of tobacco, and other kinds and forms of tobacco, prepared in such manner as to be suitable for chewing or for smoking in a pipe or otherwise, or both for chewing and smoking, but does not include cigarettes which are taxed separately pursuant to article 28 of this title.

Source: L. 86: Entire article added, p. 1113, § 13, effective July 1. L. 2005: (1.5) added, p. 721, § 5, effective June 1. L. 2020: IP, (1), (2), and (4) amended and (1.2), (1.4), (3.3), and (3.7) added, (HB 20-1427), ch. 248, p. 1192, § 11, effective January 1, 2021.

Editor's note: Section 27(2) of chapter 248 (HB 20-1427), Session Laws of Colorado 2020, provides that changes to this section take effect on the date of the governor's proclamation or January 1, 2021, whichever is later, only if, at the November 2020 statewide election, a majority of voters approve the ballot issue referred in accordance with section 39-28-401. The ballot issue, referred to the voters as proposition EE, was approved on November 3, 2020, and was proclaimed by the Governor on December 31, 2020. The vote count for the measure was as follows:

FOR: : 2,134,608

AGAINST: : 1,025,182