Opening a Convenience Store in Colorado: Licenses & Permits

Colorado lets convenience stores sell beer and wine, with conditions that shape the store itself: at least 20% of revenue from food, no self-checkout for alcohol, and 500-foot buffers from schools and liquor stores. Below is who issues what, and how each rule shapes the store you design.

Licenses and permits at a glance

Fuel tanks: the Division of Oil and Public Safety

The Division of Oil and Public Safety (OPS), part of the Department of Labor and Employment, regulates tanks under 7 CCR 1101-14:

• Installation permit: required before construction. Submit the application, site plan and $150 review fee at least 20 working days before you start, and notify the local fire department. The permit is valid for 6 months. Give 72 hours' notice before tightness testing.
• Registration: register within 30 days of first storing fuel. The fee is $35 per tank a year.
• Operators: Class A, B and C operators are required, and at least one Class C operator must be on site during operating hours at a staffed store.
• Fund: the Petroleum Storage Tank Fund reimburses eligible cleanup costs after a $10,000 deductible. Owners need $10,000 in corrective-action and $25,000 in third-party financial responsibility. Since January 1, 2025, a 10% deductible option is also available.
• EV chargers: a new OPS rule for electric vehicle chargers took effect July 1, 2026.

Beer and wine: state and local licenses

Convenience stores sell alcohol under a Fermented Malt Beverage and Wine Retailer license from the Liquor Enforcement Division (Department of Revenue) plus the local licensing authority. Existing beer licenses converted to this license on March 1, 2023. The state fee is $75 a year, and the local fee is $25 in a city or $50 outside one.

• No spirits. Spirits need a separate Retail Liquor Store license.
• 20% food: new and renewing licensees must get at least 20% of gross revenue from food items. Fuel, tobacco and nicotine, and lottery sales aren't counted. Premises with a building permit or certificate of occupancy by January 1, 2019 are exempt.
• Distances: a new license can't be issued within 500 feet of a Retail Liquor Store, measured doorway to doorway, or within 500 feet of a school or college campus, which the locality may reduce or eliminate.
• Neighborhood review: the local authority considers the reasonable requirements of the neighborhood and the desires of adult residents. Since 2024, a hearing is optional; if one is held, a sign must be posted at least 10 days before.
• At the register: no self-checkout, so an employee must complete every beer or wine sale. Sealed containers can be sold from 8 a.m. to midnight. Staff under 18 may not sell alcohol or check ID.
• Displays: where alcohol sits next to soda, juice, candy or toys, a "CONTAINS ALCOHOL 21+" sign is required, and hard seltzers or hard teas can't sit beside their nonalcoholic twins.

Tobacco and nicotine

Since July 1, 2021, retailers need a state Cigarette, Tobacco and Nicotine Product Retailer license from the Liquor Enforcement Division, $400 a year per location, displayed in the store:

• Local first: where the city or county has its own tobacco license, the state license is issued only after the local one.
• Schools: a new location can't be licensed within 500 feet of a school unless the locality allows it.
• Advertising: e-cigarette advertising must not be visible from outside the store.

Food service: the local public health agency

The local public health agency issues retail food licenses (the state health department, CDPHE, does it in nine counties). Plan review comes before construction, with a $155 application fee and a response within 14 days. A 2025 law raised the plan review fee cap to $900. 2026 annual fees are $244 for a grocery under 15,001 sq ft, $469 with a deli and $338 for limited food service. Denver sets its own fees.

Sales tax, fuel pumps and lottery

• Sales tax: a state sales tax license is $16 per location, with two-year periods starting January 1, 2026. Home-rule cities license and collect their own sales tax separately.
• Fuel pumps: OPS, not the Department of Agriculture, enforces fuel quantity and quality and tests dispensers. Meters that short-measure are taken out of service, and posted street-sign prices must match the pump. The Department of Agriculture handles scales and scanners.
• Lottery: the Colorado Lottery charges a $21 licensing fee and $40 bond a year, plus a $5 weekly communications fee. Commissions are 7% on Scratch and 6% on Jackpot games. Terminals and Scratch dispensers must be prominently displayed.

What this means for your store design

• Plan a real food program. A fifth of revenue must come from food, and fuel, tobacco and lottery don't count, so the beer and wine license depends on it. See food service build-outs and the kitchen floor plan.
• Staff the register for alcohol. No self-checkout for beer and wine, so plan the counter for a cashier-completed sale.
• Plan beer and wine merchandising with the sign rules in mind. Keep alcohol away from soda, candy and toys, or sign it. See the cooler wall planner.
• Keep vape advertising out of the windows. It can't be visible from outside.
• Check 500 feet in every direction. Schools and liquor stores can rule out a site for alcohol, and schools for tobacco. See choosing a location.

Local approvals

Your city or county also controls zoning, building permits, fire inspections, signs, the local alcohol license and any local tobacco license. Our construction checklist covers the local steps.

For Colorado store design, see convenience store design in Colorado and walk-in cooler services in Colorado.

Sources

• Colorado Division of Oil and Public Safety: installation permitting and registration, UST operator training, fund eligibility, weights and measures FAQs and rulemaking; 7 CCR 1101-14 (effective January 1, 2025).
• Colorado Beer and Wine Code and Liquor Code (2025), including C.R.S. 44-4-104, 44-4-107, 44-3-301, 44-3-311 to 313 and 44-3-901; Colorado Liquor Rules, including Regulations 47-010 and 47-950; Liquor Enforcement Division Bulletin 22-04.
• Colorado Tobacco Code and Rules (2026), C.R.S. 44-7-104.5 and 44-7-104.7.
• CDPHE, retail food licensing; SB25-285.
• Colorado Department of Revenue, sales tax license renewal; Colorado Lottery, become a retailer.

This page summarizes official sources as of October 2026. It is not legal advice. Fees and rules change, so confirm each one with the agency before you apply.