The Colorado Department of Revenue has issued a general information letter on the taxability of sales of liquor-filled candy by a retailer. The short and sweet version of the Letter is that if you buy rum balls in Colorado they will be subject to tax.
Colorado exempts food for domestic home consumption from sales and use tax if the food product qualifies as “food” under the federal food stamps program and Women, Infants, and Children program (7 U.S.C. § 2012(g)). Since liquor-filled candy does not qualify as food under these programs, it is subject to Colorado sales and use tax.
Colorado General Information Letter GIL-11-10, 06/01/2011.