Last updated 2026-08-18
TL;DR
Most choose-and-cut Christmas tree farms in Colorado skip the state nursery license because of a cut-your-own exemption. You still need a sales tax license from the Colorado Department of Revenue ($16 plus a $50 deposit) and probably a business registration. Sell pre-cut trees or move trees between lots, and you owe a nursery dealer license fee of $110 per outlet plus up to 4 weeks of processing.
Do you need a license for a Christmas tree farm in Colorado?
It depends entirely on how you sell. Colorado’s nursery law requires a Nursery Stock Dealer License from the Colorado Department of Agriculture (CDA) if you sell, offer for sale, or distribute nursery stock, and Christmas trees count as nursery stock. The law carves out a clean exemption for choose-and-cut operations.
The CDA exempts "any person selling Christmas trees from a cut-your-own operation where the trees were grown on the premises and the seller does not otherwise sell or distribute nursery stock" from the nursery dealer license requirement [1]. So if your only sale method is letting customers walk into the field and cut their own tree, and you never sell a pre-cut tree or any other plant, you skip that license.
Add a roadside stand of pre-cut trees, a lot, or a farmers market booth, or move trees between locations, and the exemption disappears. Now you need a nursery dealer license.
The nursery question is separate from tax. Selling Christmas trees directly to consumers triggers Colorado sales tax no matter what, so you need a state sales tax license from the Colorado Department of Revenue [2].
Here’s the real answer. Many Colorado Christmas tree farms run fully legal with no nursery license, but every farm selling to the public needs a sales tax license and probably a business registration.
How much does a Christmas tree farm license cost in Colorado?
The costs fall into three buckets: nursery license (if needed), sales tax license, and business registration. A choose-and-cut farm can be legal for as little as $16.
- Nursery Stock Dealer License: $110 for the first outlet per year, plus $55 for each additional outlet if you sell from more than one fixed location [1].
- Sales Tax License: A standard retail sales tax license costs a one-time $16.00 fee plus a $50.00 deposit. The deposit is refundable after two years if you file every return on time and pay what you owe [2].
- Business Registration: Form an LLC or other entity instead of operating as a sole proprietor, and the Colorado Secretary of State charges $50 to file Articles of Organization. A sole proprietor pays nothing unless they register a trade name ($20) [3].
A choose-and-cut operation that needs no nursery license spends $66 to $116 upfront: the $66 sales tax license plus deposit, plus possibly a $50 LLC fee. A farm selling pre-cut trees from one outlet spends $226: the $110 nursery fee, the $66 sales tax license, and the $50 registration. The nursery license renews yearly. The sales tax license never expires as long as you keep filing returns.
| License/Permit | Fee | Recurring? |
|---|---|---|
| Nursery Stock Dealer (per outlet) | $110 | Annual |
| Sales Tax License | $16 + $50 deposit | One-time (deposit refundable) |
| Business Registration (LLC) | $50 | One-time |
| Trade Name (if sole proprietor) | $20 | One-time |
How long does it take to get licensed for a Christmas tree farm in Colorado?
A choose-and-cut-only farm can be fully paper-legal within a week. A farm that needs the nursery license should plan on a month. That timeline covers licenses only, not land prep, planting, or the 6 to 8 years trees take to reach sale size.
If you need a nursery dealer license, budget about a month. The CDA asks that you "allow 3-4 weeks for processing" [1]. No inspection is required before the license issues in most cases. They review the application, check your compliance history, and mail the license.
The sales tax license moves much faster. Apply online through the Colorado Department of Revenue, and you get your license number the same day, with a physical copy arriving by mail in about a week [2]. Business registration through the Secretary of State also runs online, usually within one business day [3].
How to apply for a Christmas tree farm license in Colorado
Step one is deciding whether you fall inside the cut-your-own exemption. Read the exact wording from the CDA [1] and be honest with yourself. If you plan to sell even one pre-cut tree, start with the nursery dealer application.
Nursery Stock Dealer License application: Download the application packet from the CDA Division of Plant Industry. Fill in your business name, physical address, and the species of trees you plan to sell. Mail the completed form with a check for $110 (per outlet) to the address on the form. Expect a 3-4 week turnaround.
Sales tax license: Go to the Colorado Department of Revenue’s online portal and create an account. Select the retail sales tax license application. Pay the $16 fee and $50 deposit electronically. Your license number comes back right away.
Business registration: If you’re not a sole proprietor, file with the Colorado Secretary of State online. For an LLC, submit Articles of Organization and pay $50. The system returns a filing confirmation within one business day [3].
No single "Christmas tree farm license" bundles all this. You’ll hold two or three separate documents. Keep them in one folder. You’ll also need a separate revenue account for filing your quarterly sales tax returns.
Key exemptions for Colorado Christmas tree farms
The cut-your-own rule is the exemption that matters, and it has precise conditions. Under Colorado Revised Statutes § 35-26-104, you’re exempt from the nursery dealer license if all four hold: you sell only Christmas trees, the trees grow on the premises where sold, the sale happens by the customer cutting and removing the tree, and you do not otherwise sell or distribute nursery stock [4].
The exemption is binary. Add a single pre-cut fir from another farm to your sales lot and it vanishes. Sell potted trees, wreaths made from boughs, or any other plant, and it vanishes too.
A second exemption covers anyone selling less than $1,000 of nursery stock per year, but that small-dollar threshold rarely fits a working Christmas tree farm. It’s useful only for a hobbyist moving a few trees.
Some growers assume they need a nursery license just because they sell trees. Not true in Colorado if you stick to choose-and-cut. The CDA will not chase a genuine cut-your-own operation that sells nothing else.
Ongoing license renewal requirements
The Nursery Stock Dealer License expires one year from its issue date. CDA sends a renewal notice to the mailing address on file, and the renewal fee matches the original at $110 per outlet [1]. Miss the date and you cannot legally sell. Late renewal can force a fresh application instead of a simple renewal, so treat the annual date as immovable.
The sales tax license does not expire as long as you file a return for every period, even one with zero sales. The $50 deposit comes back after two years of clean filing. Stop filing and the license can be revoked [2].
Business registration with the Secretary of State requires a periodic report for LLCs every year. It costs $10 and is due by the end of the anniversary month of your formation [3]. A sole proprietor with a trade name renews that registration every year too.
Other permits you might need for your farm
Licensing isn’t the only paper you’ll face. County zoning and land use rules may limit where you run a retail Christmas tree farm. Some counties require a special use permit for agritourism or retail sales on agricultural land. Call your county planning department before you plant a single seedling.
Water rights matter in Colorado. Irrigate your trees and you need a legally recognized water right or access to a reliable ditch share. The Colorado Division of Water Resources handles that permitting [5]. Dryland farming skips the water paperwork but slows growth and narrows your species choices.
Sell food or host events and you may need a health department permit and liability insurance. None of these block the licenses above, but they shape whether you can actually open. Start with the paper closest to the tree sale itself, then work outward to land and operations.
What else to know before you plant
The license and permit side of a Colorado Christmas tree farm is light, especially for choose-and-cut. That’s the good news. It also means the real weight sits on the land and the trees. Growing a marketable 6 to 7 foot fir takes 6 to 8 years in Colorado’s climate, with annual shearing and pest control. The license is one afternoon of paperwork. The farm is a decade-long commitment.
When you’re ready to move from paper to planting, ChooseAndCutPath’s $149 Shear-Year + Choose-and-Cut Kit maps the seasonal shearing, pest scouting, and customer flow tasks so you don’t reinvent every step. But first, get the revenue license, understand the exemption, and know exactly what you’ll sell.
For a broader look at startup steps, see our guide on how to start a Christmas tree farm in Colorado. Comparing costs across states? The Alabama license overview and Alabama cost breakdown show how far apart two states can be. And when renewal season lands, Alabama’s renewal process gives a sense of annual upkeep.
Frequently asked questions
Do I need a nursery license if I only sell cut-your-own Christmas trees?
No. Colorado exempts a person who sells Christmas trees from a cut-your-own operation if the trees were grown on the premises and the seller does not otherwise sell or distribute nursery stock. Add pre-cut trees or other plants and the exemption disappears, so then you need the license.
What if I sell pre-cut Christmas trees at a lot or farmers market?
Then you need a Nursery Stock Dealer License from the Colorado Department of Agriculture. The license costs $110 per outlet per year, plus $55 for each additional outlet. You still need the sales tax license on top of it.
How much does a Colorado sales tax license cost?
The Colorado Department of Revenue charges $16.00 for a standard retail sales tax license plus a $50.00 deposit, so $66 upfront. The deposit is refundable after two years of timely filing and payment.
How long does it take to get a nursery dealer license in Colorado?
The CDA advises allowing 3 to 4 weeks for processing. You mail in the application with your check, and the license arrives in about a month. No pre-licensing inspection is required in most cases.
Can I run a Christmas tree farm as a sole proprietor?
Yes. You don’t need to register with the Secretary of State unless you use a trade name. A trade name registration costs $20. Many small farms run as sole proprietors with no LLC at all.
Do I need a federal license to grow Christmas trees?
No. The U.S. Department of Agriculture does not require a federal license for growing or selling Christmas trees. State and local requirements are the only ones you’ll face.
How long does it take to grow Christmas trees to sale size in Colorado?
From planting a seedling or transplant to a 6 to 7 foot harvestable tree usually takes 6 to 8 years, depending on species, elevation, and irrigation. The license application, by contrast, takes weeks.
Does a Christmas tree farm need an employer identification number (EIN)?
An LLC or partnership needs an EIN from the IRS. A sole proprietor with no employees can use their social security number, though many still get an EIN for banking. It’s free and instant online [6].
Is there any inspection required for the nursery license?
The CDA mainly reviews the application for completeness and any past violations. It does not require a pre-licensing inspection in most cases. It may still inspect your records or plants at any time after issue.
What if I sell Christmas trees only one weekend a year?
The exemption does not depend on volume or number of days. If you only offer cut-your-own trees and no other stock, you are exempt from the nursery license. The sales tax license still applies because you’re making retail sales.
Can I plant and sell trees on leased land?
Yes, as long as you have the landowner’s written permission and the land is zoned for it. The nursery license does not require you to own the land, only that you sell trees grown on that specific premises.
Sources
- Colorado Department of Agriculture, Nursery Stock Dealer License: License fee of $110 per outlet per year; exemption for cut-your-own Christmas tree operations; 3-4 weeks processing time.
- Colorado Department of Revenue, Sales Tax License: Sales tax license fee is $16.00 plus a $50.00 deposit, refundable after two years.
- Colorado Secretary of State, Business Division Fees: LLC Articles of Organization filing fee $50; Trade Name Registration $20; annual report fee $10.
- Colorado Revised Statutes § 35-26-104, via Justia: Exemption from nursery dealer license for persons selling Christmas trees from a cut-your-own operation on premises where grown.
- Colorado Division of Water Resources: The Colorado Division of Water Resources handles water rights and irrigation permitting.
- Internal Revenue Service, Apply for an EIN Online: An EIN is free and can be obtained online from the IRS.