Vape Vending Machines Sales Laws and Regulations in Colorado

Considering becoming a vape vending machine host in Colorado? Familiarize yourself with the current state laws to ensure compliance and successful operations. Here's a quick breakdown of current state regulations for vapor products, vape machines, and sales.

Whether you're a retailer, entrepreneur, or operator, understanding these regulations is essential not only for compliance but also for safeguarding your investment. Below is a detailed guide that breaks down the current rules, requirements, and best practices for operating a vape vending machine in Colorado.

1. Placement Restrictions (Vending Machines)

Per C.R.S. § 44-7-103(2):

“A retailer shall not sell or offer for sale cigarettes, tobacco products, or nicotine products by use of a vending machine.”
— No exception exists for vape or nicotine pouch vending machines. Even 21+ establishments are not exempt.

Only cigarettes may be sold via vending machines and only on age-restricted casino gaming floors:

C.R.S. § 44-7-103(3):
“A retailer may sell cigarettes by use of a vending machine only in a location where the vending machine is located on the gaming floor of a casino.”

Conclusion: Vape and nicotine pouch vending machines are effectively prohibited in Colorado under all circumstances.

2. Licensing & Permitting Requirements

🔹 License Type:

• Retail Nicotine Product Dealer License is required under C.R.S. § 44-7-104.

“A person shall not engage in the business of selling nicotine products or tobacco products at retail without first obtaining a license…”
— License must be obtained per location.

🔹 Application & Fees:

• Apply through the Colorado Department of Revenue – Liquor Enforcement Division
  • https://sbg.colorado.gov/liquor-enforcement
• Fee structure (as of June 2025):
  • $200 initial application fee
  • $100 annual renewal
  • Must also obtain a Colorado Sales Tax License through https://mybiz.colorado.gov

🔹 Additional Conditions:

• Sales must be face-to-face with age verification
• Retailers must post signage required by law stating sales to under-21 are illegal

3. Excise Taxes & Sales Tax

🔹 Excise Tax (C.R.S. § 39-28.6-103):

• 62% of the manufacturer’s list price (MLP) applies to:
  • Nicotine pouches
  • E-liquids (whether or not they contain nicotine)
  • Electronic cigarettes

“A tax is imposed upon the sale of nicotine products by a distributor at the rate of sixty-two percent of the manufacturer's list price.”

🔹 Sales Tax:

• State rate: 2.9%
• Local city/county rates: vary by location (Denver ~4.81%, Boulder ~3.86%, etc.)

🔹 Tax Registration:

• File online at: https://mybiz.colorado.gov

4. Regulatory Agencies

• Colorado Department of Revenue (CDOR)
• • Enforces licensing, sales tax, and excise tax compliance.
  • https://tax.colorado.gov
• Liquor Enforcement Division (LED)
  • Issues Retail Tobacco & Nicotine Product Licenses
  • https://sbg.colorado.gov
• Colorado Department of Public Health and Environment (CDPHE)
  • Enforces youth access rules and public education campaigns
  • https://cdphe.colorado.gov

5. Municipal Ordinances – Examples

🔸 Denver:

• Requires a separate tobacco retail license from the Denver Department of Excise and Licenses.
• Enforces zoning laws prohibiting tobacco retailers near schools and youth centers.

🔸 Boulder:

• Flavored nicotine products banned (including menthol).
• Requires a local Tobacco Retail License in addition to the state license.

🔸 Fort Collins:

• Tobacco retailers must be at least 500 feet from youth-oriented facilities.
• No self-service sales allowed.

Local ordinance search tip: Visit city.gov licensing or municipal code sites.

6. Other Compliance Requirements

• Minimum Sale Age: Federal law supersedes state minimums — 21 years
• Signage: Retailers must display:

"Sale of nicotine or tobacco products to persons under 21 is prohibited by law."

• Packaging: Must comply with all FDA labeling, including health warnings
• Sales Method: Must be direct, face-to-face. No self-service or vending.

Disclaimer: This page is intended for informational purposes only and should not be considered legal advice. Consult official Colorado government resources for the most current regulations.