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Clarify Occasional Alcohol Beverage Sale Exemption

Concerning a clarification that certain occasional sales of alcohol by way of public auctions are exempt from licensing requirements but not from the excise tax on alcohol beverages.
2020 Regular Session
Liquor, Tobacco, & Marijuana
Bill Summary

Current law provides that the occasional sales of alcohol by way of public auctions do not require a liquor license or compliance with the reporting requirements for licensed liquor distributors or retailers, so long as:

  • The previous owner of the alcohol beverages has not claimed the beverages or furnished instruction for their disposition;
  • The seller obtained the beverages as part of the foreclosure of a lien;
  • The seller salvaged the beverages; or
  • The seller operates a charitable organization and received the beverages as donations.

However, the excise tax on alcohol beverages is nonetheless applicable to those occasional sales even though the licensing and compliance requirements do not apply.

Because it is not clear that the excise tax on alcohol beverages still applies to those occasional sales, it was mistakenly identified as a tax expenditure in the department of revenue's tax expenditure report and thus mistakenly evaluated by the office of the state auditor as part of that office's evaluation of the state's tax expenditures. The bill clarifies the exemption.

(Note: This summary applies to this bill as introduced.)


Under Consideration


Bill Text


Sponsor Type Legislators
Prime Sponsor

Rep. A. Benavidez, Rep. M. Snyder



Pursuant to HJR20-1007, the Second Regular Session of the 72nd General Assembly is Temporarily Adjourned until 10:00 a.m., Monday, March 30, 2020. 

COVID-19 Resources

Temporary Guidelines for Review and Comment Meetings

The legislature will meet in limited session on Monday, March 30th. The Capitol will be open for the duration of the session for those with essential business related to the session. The building will not be available for public tours. People without essential business are encouraged to access the session through the General Assembly website and Colorado Channel.  Anybody with essential business related to the session will be required to practice appropriate social distancing measures.