Colorado Cottage Food Laws

Colorado Cottage Food Law: Comprehensive Guide

An in-depth guide to Colorado’s Cottage Foods Act, covering eligible and prohibited foods, training requirements, labeling, sales limits, sales venues, tax obligations, and practical steps for entrepreneurs looking to start a home-based food business under state law.

Quick Facts

Overview / Introduction

Colorado’s Cottage Foods Act was enacted in 2012, allowing home-based producers to sell non-potentially hazardous foods directly to consumers without state licensing or inspection. (cdphe.colorado.gov) This legislation was later updated, with an unofficial annotated version noting recent changes. (cdphe.colorado.gov)

Sales Limits

Net revenue allowance: The Act permits producers to earn up to $10,000 per product type (for example, different flavors of muffins count separately). (cdphe.colorado.gov)

Licensing & Registration

Licensing or inspections are not required under the Cottage Foods Act for eligible products. (cdphe.colorado.gov)

Training Requirements

Producers must complete one of the following food safety training options:

• Food Safety Training for Colorado Cottage Food Producers (in-person via Colorado State University Extension), valid for three years. (cdphe.colorado.gov)
• An online Food Handlers Card via State Food Safety. (cdphe.colorado.gov)
• A training course offered by a local public health agency. (cdphe.colorado.gov)

Home Kitchen Inspection

No home kitchen inspection is required under the Cottage Foods Act. Producers operate without regulation or licensure. (cdphe.colorado.gov)

Allowed Foods

The following non‑potentially hazardous foods are allowed:

• Pickled fruits/vegetables with finished equilibrium pH ≤ 4.6
• Dry spices, dry teas, dehydrated produce, nuts, seeds
• Honey, jams, jellies, preserves, fruit butter
• Flour, candies, fruit empanadas, tortillas – items not requiring refrigeration
• Up to 250 dozen whole eggs per month
• Baked goods (e.g., muffins, fruit pies, cookies, cakes)
• Roasted coffee beans
• Buttercream made with ghee or vegetable oil (but not butter)
• Candies like cotton candy and fudge
• Freeze‑dried produce (cdphe.colorado.gov)

Prohibited Foods

Ineligible (prohibited) products include:

• Meat products (bacon, jerky, chicharron, poultry, fish, shellfish), even as ingredients or toppings
• Baked/fried goods with cream, custard or meringue fillings/toppings
• Buttercream made with butter
• Sauces (barbecue, pasta, salad dressings, etc.)
• Beverages
• Condiments (ketchup, mustard, hot sauce)
• Pumpkin, sweet potato, or cream pies
• Cut fresh produce, juices, concentrates, purees
• Pepper jellies/jams with fresh peppers or homemade dehydrated peppers
• Freeze‑dried meals
• CBD or THC‑containing products (cdphe.colorado.gov)

Labeling Requirements

All cottage food products must be packaged and labeled. Required label elements include:

• A disclaimer: "This product was produced in a home kitchen that is not subject to state licensure or inspection. This product is not intended for resale." displayed clearly at point of sale (placard, sign, or card). (cdphe.colorado.gov)
• Producers may not label products “allergen free”; labels must disclose that produced in a home kitchen and may contain common allergens. (cdphe.colorado.gov)
• To label an ingredient “organic”, producers need USDA NOP certification. They may list ingredients as organic if the term does not appear on the primary label. (cdphe.colorado.gov)

Where You Can Sell

• Products must be delivered directly from producer (or designated representative) to an informed end consumer. No resale permitted. (cdphe.colorado.gov)
• Sales to restaurants, grocery stores, or other retail establishments are not allowed. (cdphe.colorado.gov)
• Only sold within Colorado. (cdphe.colorado.gov)
• Sales venues: in-person, multiple events even simultaneously, allowed if direct to informed consumer. (cdphe.colorado.gov)
• Internet sales are permitted, but must remain intrastate (within Colorado), and delivery arranged directly to consumers. (cdphe.colorado.gov)
• Catering is not allowed under this Act. (cdphe.colorado.gov)

Sales Tax & Business Registration

Cottage food businesses are subject to income and sales tax, and possibly local business licensing or tax permits. (cdphe.colorado.gov)

Resources:

• Sales Tax Basics guide from Department of Revenue (cdphe.colorado.gov)
• Sales Tax Guide and Publications (cdphe.colorado.gov)
• Register new business via mybiz.colorado.gov (cdphe.colorado.gov)
• File Colorado Retail Sales Tax Return via revenueonline (free) (cdphe.colorado.gov)
• For special events, use DR 0589 Special Event Application and DR 0098 Special Event Tax Return if applicable (cdphe.colorado.gov)
• DR 1002 Sales/Use Tax Rates for tax rate lookup and home‑rule jurisdiction info (cdphe.colorado.gov)

Special Exemptions (Pending Legislation)

HB26‑1033 (2026) proposes significant expansions to the Cottage Foods Act. If enacted after 2026, it would:

• Remove the $10,000 net revenue cap per product
• Allow sales of refrigerated foods and meat products, with added food safety training and course documentation
• Empower local health agencies to inspect and fine for non‑compliance, and recover enforcement costs (leg.colorado.gov)

Getting Started: Practical Steps

1. Confirm your product’s eligibility (non‑potentially hazardous) as listed under the Act. (cdphe.colorado.gov)
2. Complete food safety training using one of the three approved options. (cdphe.colorado.gov)
3. Prepare compliant labels and point-of-sale signage, including the required disclaimer and allergen notice. (cdphe.colorado.gov)
4. Register your business at mybiz.colorado.gov, and familiarize yourself with sales tax obligations, including use of revenueonline, DR forms, and checking rate publications. (cdphe.colorado.gov)
5. Plan your sales strategy: direct to consumer at markets, events, or via intrastate online orders. Ensure delivery remains within Colorado. (cdphe.colorado.gov)
6. Track revenue per product to ensure you remain under the $10,000 cap. (cdphe.colorado.gov)
7. If upcoming changes under HB26‑1033 are enacted, be prepared to adapt training, allowed products, and compliance oversight. (leg.colorado.gov)

Official Resources

Refer to these authoritative state sources for current rules, forms and guidance:

• Colorado Department of Public Health & Environment (CDPHE): Cottage Foods Act overview and resources (cdphe.colorado.gov)
• Colorado Department of Agriculture, Plants Division for organic labeling guidance (cdphe.colorado.gov)
• CDPHE training links: CSU Extension, State Food Safety, local health agencies (cdphe.colorado.gov)
• Colorado Department of Revenue: Sales Tax Basics, mybiz, revenueonline, DR publications (cdphe.colorado.gov)
• Colorado General Assembly: HB26‑1033 bill text and status (leg.colorado.gov)

Official Sources

This guide was compiled from the following official sources:

• cdphe.colorado.gov
• cdphe.colorado.gov
• leg.colorado.gov