Summary: There is currently an agreement allowing for credit distributors to claim for taxes paid on tobacco products that are shipped or transported by that said distributor from outside of Colorado. The agreement is set to expire September of 2018 but this bill looks to make that credit permanent. Distributors claim the purpose of extending the credit is to retain businesses that have expanded or opened due to the “Cigar On-Line Sales Equalization Act.”
The distributors are required to keep complete and accurate records that include itemized invoices of the tobacco products held, purchased, manufactured, and brought in from outside the state or transported to retailers in this state. No invoices are required for tobacco products sold within the state, but they are for all tobacco products transferred to other retail outlets owned/controlled by that distributor. These type of records must be preserved for at least three years after the initial date.