Regulation 28-101. Reserved Regulation 28-102. Any wholesaler having a change of business location may upon proper application to and approval by the director transfer the license from the old location to the new location. A wholesaler having a change of name or trade name without a change in ownership may upon proper application to and approval by the director have the license transferred to the new name or trade name. Regulation 28-103. Wholesalers duly licensed by the department operating within the state of Colorado may sell or exchange with another duly licensed wholesaler within the state stamped or unstamped cigarettes. Proper accounting for the packages, cartons or cases so sold or exchanged must be made to the department of revenue by wholesalers involved in such sale or exchange. Regulation 28-104. Reserved.

Regulation 28-105.

(1) Every licensed wholesaler desiring to procure the authorization from the department for the use of a metering machine shall be required to either:

a. Post with the department of revenue a bond by a surety company authorized to do business in this state in the amount of $1,000.00 per metering machine in the form approved by the executive director; or b. Execute an assignment of savings account or deposit or certificate of deposit, as specified under C.R.S. 11-35-101 in the amount of $1000.00 per metering machine. Said assignment shall be (i) in the form approved by the executive director (ii) duly notarized by an authorized representative of the licensee, and (iii) delivered to the executive director prior to the initial use of the metering machine. (2) Any licensed wholesaler qualifying for the use of an approved metering machine to affix imprints required by this act may apply to the department for permission to facilitate the reading, inspecting, setting or resetting and resealing of such metering machine and the payment of any tax due thereon by requesting that such periodic inspection be made at the district office of the department of revenue located nearest the wholesaler. If there is no district office located within the vicinity of the wholesaler's place of business, the wholesaler may request that the inspection be made by a banking institution approved by the department. Application to have a banking institution make the inspection shall be made to the department by the wholesaler and such application shall state the name of the bank, the persons employed by said bank who will handle such transaction, the number and description of the metering machine or machines used, and such other information as may be required by the department. The bank will not be granted authorization to make such inspections unless proof is submitted that it is designated by the state in which it is located as an approved depository for trust funds. The determination of approval will rest exclusively with the department. The department also reserves the right to revoke the authority of any bank previously authorized to make metering machine inspections.

If the department approves such application for processing of the inspection which includes reading, setting, resetting and sealing of metering machines through a bank, it will be necessary for the bank to place on record with the department an acceptance of the responsibility for such periodic inspections, and the bank shall be responsible for the collection and remission of any taxes due as a result of the inspection. Said bank will also be responsible for any seals delivered to it for affixing to the machines. Every such inspection shall be reported immediately on the appropriate departmental form and shall be accompanied by the payment of the tax for the number of units set on the machine. Each such inspection, reading, and setting or resetting, together with the tax payment shall be subject to final audit and determination of the tax due by the department.

(3) Every licensed wholesaler utilizing a metering machine to affix impressions to packages of cigarettes to indicate payment of the tax may pay to the department the amount of tax less the wholesaler's discount, when applicable, for each unit set on the machine at the time of the initial setting, and may pay the amount of tax less the wholesaler's discount, when applicable, for each unit placed on the machine at the time of any resetting. At the wholesaler's option, payment of the tax, without the discount, may be made on or before the tenth day following the reading of the metering machine.1 1House Bill 1001, enacted August 16, 1986, provides that the cigarette wholesaler is allowed the discount if payment of the tax is made on or before the twentieth day following the reading of the metering machine. This statutory provision supersedes the reference to the “tenth day” found in this Regulation.

Such payment and the inspection, setting or resetting of machines shall not relieve the wholesaler of the liability for the making of a monthly return to the department. Regulation 28-106. Reserved.

Regulation 28-107. (1) Only those cigarettes distributed by a manufacturer's agent or representative for advertising purposes may be distributed or given to consumers without affixing a stamp or other indicia of tax payment to each package. In such instances, however, the manufacturer, represented by such person giving away the sample cigarettes, shall make monthly reports and payment of tax at the same rates prescribed by law. Such reports and payments shall be made directly to the department. Any package of cigarettes, other than those distributed for advertising purposes, must have a proper Colorado stamp or imprint affixed thereto or be subject to confiscation. Regulation 28-108. Reserved Regulation 28-109 Cigarette Report Required. Every wholesaler of cigarettes subject to tax under this article shall report as required in regulation 39-28-202, unless exempt from reporting under regulation 39- 28-202(5).

Regulation 28-110. Reserved Regulation 28-111. Reserved Regulation 28-112. Reserved Regulation 28-113. Reserved Regulation 28-114. Reserved Regulation 39-28-202 (1) Definitions. For purposes of this Section, the following definitions apply: a. “Cigarette” has the same meaning as prescribed in § 39-28-202(4), C.R.S. b. “Department” means the Colorado Department of Revenue. c. “Master Settlement Agreement” has the same meaning as prescribed in § 39-28-202(5), C.R.S.

d. “Non-participating manufacturer” means a tobacco product manufacturer that is not a “participating manufacturer.”

e. “Original participating manufacturers” means Brown & Williamson Tobacco Corporation, Lorillard Tobacco Company, Philip Morris Incorporated and R. J. Reynolds Tobacco Company, and the respective successors of each of them. f. “Participating manufacturer” means and includes the “original participating manufacturers” and “subsequent participating manufacturers.”

g. “Subsequent participating manufacturers” means tobacco product manufacturers that have become signatories to the Master Settlement Agreement but that are not original participating manufacturers, and the respective successors of each of them. h. “Tobacco distributor” means a tobacco products distributor or resident or non-resident cigarette wholesaler that is liable for the taxes on cigarettes or tobacco products imposed under 39-28 and 39-28.5 C.R.S. Title 39, Articles 28 and 28.5. i. “Tobacco product manufacturer” has the same meaning as prescribed in § 39-28-202(9), C.R.S.

j. A tobacco distributor has “sold” cigarettes in Colorado when the distributor has stamped a cigarette package or container for sale in Colorado as described in § 39-28-104, C.R.S., or otherwise has become liable for the excise taxes imposed on cigarettes under C.R.S. Title 39 Article 28 or roll-your-own tobacco that constitutes tobacco products under 39- 28:5 C.R.S. Title 39, Articles 28:5.

(2) The Department shall maintain a current list of participating manufacturers and make it available to tobacco distributors.

(3) A tobacco distributor shall report monthly to the Department such information as is required by the Department to ascertain the quantity of each non-participating manufacturer's cigarettes sold in Colorado by the tobacco distributor during the preceding month and the amount of Colorado excise tax paid on those cigarettes or tobacco products. The tobacco distributor shall certify to the Division that such information is true and correct. The monthly information required by the Department shall include, but not be limited to:

a. The brand names of each non-participating manufacturer's cigarettes received by the tobacco distributor in Colorado.

b. The brand names of each non-participating manufacturer's cigarettes received by the tobacco distributor outside Colorado and sold by the tobacco distributor in Colorado. c. The name and address of the non-participating manufacturer of each brand of cigarettes identified by the tobacco distributor.

d. The number of individual cigarettes of each brand of non-participating manufacturer's cigarettes received by the tobacco distributor in Colorado. e. The number of individual cigarettes of each brand of non-participating manufacturer's cigarettes sold by the tobacco distributor in Colorado. f The number of individual cigarettes of each brand of non-participating manufacturer's cigarettes that the tobacco distributor exported from Colorado without payment of the taxes imposed by C.R.S. Title 39, Articles 28 and 28.5.

g The number of individual cigarettes of each brand of non-participating manufacturer's cigarettes for which the tobacco distributor obtained a tax refund under § 39-21-108, C.R.S.; and h The invoice number relating to the tobacco distributor's: I. Purchase or acquisition of non-participating manufacturer's cigarettes received or sold by the tobacco distributor in Colorado; and II Export, if any, of non-participating manufacturer's cigarettes from Colorado. (4) The report required under subsection (3) shall be on a form prescribed by the Department and shall be filed by the tobacco distributor with the Department by the 20th day of the month following the month for which the report is made. Reports for cigarettes sold in Colorado after January 1,2000 and before the effective date of this Section are due 60 days after the effective date of this Section, unless previously reported to the Department.

(5) Exemption from monthly reports. Tobacco distributors who reasonably anticipate that they will not sell cigarettes or roll-your-own tobacco products of non- participating manufacturers are exempt from the reporting requirements of this regulation if the tobacco distributor submits to the Department a written certification affirming the same, on a form prescribed by the Department. If a tobacco distributor files a certification, the tobacco distributor is not required to file the monthly reports, except as set forth below. The certification shall exempt the tobacco distributor from filing reports for the twelve consecutive months following the month in which the Department receives the certification. A tobacco distributor who files a certification must renew the certification at least once every twelve months. If a tobacco distributor who previously filed a certification thereafter sells cigarettes or roll-your-own tobacco products of a non-participating manufacturer, such tobacco distributor must thereafter file reports on a monthly basis, beginning with the month in which such sales are made, unless and until such time as the tobacco distributor files another certification. The tobacco distributor shall sign the certification certifying that the tobacco distributor has diligently reviewed its records and, to the best of the tobacco distributor's knowledge and information, the certification is true and accurate. (6) A tobacco distributor shall keep all records relating to or reflecting its purchase and sale of non- participating manufacturer's cigarettes after January 1,2000, for a period of four (4) years after the date of sale. The tobacco distributor shall make the records available to the Department within three business days of a request by the Department.

(7) In addition to the penalties set forth in Sections 39-21-118, 39-28-108 and 39-28.5- 110, C.R.S., subject to the requirements of 39-28-102(1) and 39-28.5-104, C.R.S., the Department may commence a license revocation hearing for a tobacco distributor, if the tobacco distributor fails to comply with this Section within ten days of written demand from the Department, the Department shall not reinstate the license of a distributor until the distributor has fully complied with the provision of this Section.

Regulation 39-28-303 - A tobacco product manufacturer who has not previously submitted a completed DR 0231 Tobacco Product Manufacturer Certification as provided by CRS 39-28-303, shall provide a completed DR 0231. Upon receipt of the DR 0231, the tobacco product manufacturer's approved brands will be listed in the Certified Brands Directory on the department's web site within 30 days. The brands cannot be sold, offered for sale, or possessed for sale in Colorado until listed in the Certified Brands Directory.

Regulation 39-28-303(2)(c) A stamping agent must provide an electronic mail (email) address to the department for purposes of receiving notice of any addition or removal or potential addition or removal from the directory of a tobacco product brand manufacturer or brand family. A stamping agent is defined as:

● A person that is authorized to affix tax stamps to packages or other containers of cigarettes or tobacco products.

● A person that is required to pay the tobacco products tax. The email address shall be provided on the DR 1285, Licensed Distributor Reporting Form for Cigarette Sales of Non-Participating Manufacturer Brands or the DR 1286, Tobacco Distributor's Certificate for Exemption MSA/Non-Participating Manufacturer Brands. Any subsequent change of the electronic mail address shall be submitted to the department by email or in writing within five (5) business days after the change of the email address.

Regulation 39-28.5-106(1). Tobacco Report required.

Every distributor subject to tax under this article shall report sales of roll-your-own tobacco as required in regulation 39-28-202, unless exempt from reporting under regulation 39-28-202(5).