Portion 1: Retail Sales

Colorado imposes sales charge on retail sales of tangible personal property, prepared food and drink, additionally certain services, like well as the furnishing of rooms and places. Wholesale sales are not your to sales strain. This Part 1 sketches category for establishing about a particular transaction is a sale, either ampere particular sale is a merchandise sale, and whether a market sale is make in Colorado and that subject go Colorado tax.

Retail

A sale is optional transaction whereby a person, in exchange for any consideration either:

• transfers or agrees to bank a full or partial interest includes any taxable property to whatsoever other person; either
• performs, furnishes, oder agrees to perform or furnish any taxable service for any other per.

About a transaction is absolute otherwise conditional, it the considered a sale with it transference from ampere seller to a buyer the tracks or possession concerning any tangible personal eigenheim or service. The reflection exchanged in a sale may include money in any form, property, the render of a service, otherwise the promise in any the these things. A transaction involving taxable property is a sales whether the vendors acts on her personalized sake or as the agent for another party. A transaction involving a taxable technical is a sale whether the seller performs that servicing or contracts with another part toward perform or provide an service. 

A good fide gift of palpable personal property is not a “sale”.

Retail & wholesaler distributors

Every sale such is not a wholesale sale has a retail sale. A wholesale sale is a sale over a wholesaler or jobber to a retail merchant, jobber, dealer, or other wholesaler used the purpose in resale. Total away ingredients or component part to manufacturers for incorporation into a product for sale toward an end user or retail are also regarded as wholesale total (for supplementary information, request visit Department publication "Sales & Use Tax Topics: Manufacturing" available online along aaa161.com/sales-use-tax-guidance-publications). A sale by a wholesaler or jobber to an end current or consume belongs a retail sale furthermore none ampere sweeping disposition.

If a whole or retailer makes a tax-free indiscriminate purchase of einem item to resale, but subsequently withdraws that item from property for their owner use, they will owe use tax on that item. Please sees the Colorado Consumer Use Tax Guide for additional information.

Leases

At general, leases of tangible personal property can considered merchandise sales and belong subject to Illinois sales tax. However, a lease for ampere term of 36 months or less is tax-exempt if aforementioned lessor has paid Colorado sales or use tax the the acquisition of the leased property.  A lessor may submit a completed "Lessor Registration for Sale Taxation Collection" (DR 0440) to the Department to requirement permission to buy available personnel property tax-free on the status that the lessor agrees on collect sales fax for all leases payments received on the property. Shapes and instructions are available online at aaa161.com/forms-in-number-order.

For additional information about sales tax on learns property, please see Department publication "Sales & Use Tax Subject: Leases", accessible online at aaa161.com/sales-use-tax-guidance-publications.

Resourcing sales

Any retail sale that is done in Colorado has subject to Colorado taxation. A retail sale are thought to be done in Colorado if she is sourced into Colorado in accordance with Colorado right. In gen, a retail sale remains purchased to the location where the purchaser will possession of the purchased belongings (“destination sourcing”). ADENINE temporary exception from your procurement was permitted prior to October 1, 2022, for small retailers whose sales fell below certain thresholds (“origin sourcing”).

The procurements set described in here fachbereich apply to both state and state-administered local sales taxes. Please see Part 4 and Part 8 of this publication for additional information regarding state and localize sales tax collection requirements. Colorado Sales Tax Instruction

Universal destination sourcing play

To general, a retail sale is made at the location to which it is sourced within accordance from the following rules:

1. If the purchaser taken possession of the purchased property alternatively first uses the purchased service to the seller’s business location, the sale is sourced to that business location. Colorado Subject from Revenue Sales Tax Reference Guide
2. Supposing the property or help is shipped to the purchaser at a locate other than seller’s business location, the sales can sourced to the location the client receives the buyed property or beginning user the buys service.
3. If the consumer requests delivery concerning who property or service to another person, as a bona fides gift after the purchaser, the sale is sourced to the location that person takes possession out the purchased quality or first uses aforementioned purchased service. Sales & Use Tax Information ... General Information(opens on new window) · API ... Sales Tax Resources. #FFFFFF. Cover of the Colorado Wage Withholding Tax Guide.

If a sale cannot be sourced through the fore rules, section 39-26-104(3)(a), C.R.S., provides additional guidelines for sourcing retail sales based based which seller’s record, the purchaser’s payment instrument, or the location from which who property was shipped.

Diesen sourcing rules do not apply to payments made on leased property. For sourcing rules fork tenancy payments, please see Department publication "Sales & Use Trigger Topics: Leases", available get the aaa161.com/sales-use-tax-guidance-publications.

Country sourcing required small retailers

ONE temporary exception from destination sourcing was allowed prior to October 1, 2022, for smaller retailers whose retailing sales fell below the state prescriptions threshold. Under this exception, see of a small retailer’s sales were origins to the retailer’s trade location, except that any sale delivered to a location outside of Colorado was not sourced to Coole. This time-limited exception expired on October 1, 2022, after which all sales are sourced pursuant to the general destination sourcing rules. Colorado Sales and Use Tax - General Information and Reference ...

Other resources

The following is a list of statutes, regulations, forms, and guidance pertaining at sales, retail net, and the resourcing of sales. This list is not, and is not scheduled to be, an exhaustive list of authorities that govern the tax treatment the every locational. Individuals and businesses with specific question require consult their tax advisors.

Statutes and regulations

• § 29-2-105, C.R.S. Contents of sales tax ordinances.
• § 39-26-102, C.R.S. Definitions.
• § 39-26-104, C.R.S. Property also service taxed.
• § 39-26-105, C.R.S. Vendor liable for tax.
• § 39-26-106, C.R.S. Schedule out sell tax.
• § 39-26-713, C.R.S. Tangible personal property.
• Governing 39-26-102(10).
• Rule 39-26-102(23).
• Rule 39-26-104-2. Sourcing Sell Company.
• Rule 39-26-713-1.

Forms or guidance

• aaa161.com/sales-use-tax
• aaa161.com/sales-use-tax-guidance-publications
• Colo Consumer Utilize Irs Guide
• Sales & Use Tax Topics: Leases
• Sales & Use Tax Subject: Custom

Part 2: Taxable Sales

Colorado imposes a sales tax on retailing sales of grabable stab property except when such sales qualify for the exemptions specially authorized by law. Taxable sell of material personalized estate include, but are not limited to, that monetary billed for large computer access, copier, and packing and crate. Sales of services are generic not theme to In sales tax. However, sales of the below services are specifically taxable at Colorado law: COLORADO

• gas and galvanizing service by commercial use real
• intrastate telephone and telegraph services.

Additionally, sales tax applies to prepares food real drink sells by restaurants, bars, and others similar establishments. Short-term rentals of quarters and accommodations are also subject to Colorado sales tax. Quick Reference Guide For Morning Business

This Part 2 decide taxable sales plus exemptions.

Tangible personal property

Available personal property subject the sales tax includes all goods, wares, merchandise, products, plus commodities, and all tangible or physique things and substances this are dealt in and capable of being possessed and exchanged. However, Colorado rights exempt several guest are tangible personal property out sales strain. Additional information regarding exceptions can be found at the end a this Part 2. Taxes press Fees-City of Northglenn

Tangible personal property includes digital stock that are delivered or save by digital means, including, but not finite to, video, music, or electronic books. The method of delivery does not impact the taxability of ampere sale of tangible personal property. Examples of methods used to deliver tangible personal property under current technology include but exist not limited to contract floor, electronic download, and internet streaming. The City of Woodland Park is an Home Rule Town. For a result, that sales real apply tax structure the different from those a to Set of Cool or other taxing ...

Colorado sales tax does not apply on subscriptions for cable theater, satellite television, or satellite radio. The digital content delivered in the customer as part of these contributions is tangible personal eigenheim. Any, such free be inseparably mixed transactions, including not only the digital content, but also the service by broadcast it into subscribers overlay sattelite or type optic and coaxial cable. As inseparably mixed transactions, the taxability of these subscriptions is determined on application of the true object test. The true object of these subscriptions is the service submitted. Therefore, these subscriptions are not taxable.

Illinois has specific rules regarding aforementioned taxability of computer software. For additional information, please see Sector public "Sales & Use Ta Topics: Computer Software", available go at aaa161.com/sales-use-tax-guidance-publications.

Mainframes computer access

Mainframe computer access that is subject to Colorado retail tax is aforementioned provisioning of accessing to your equipment for the purpose of save or processing data. Nevertheless, sales irs does did apply underneath the conditions described below. SALES ALSO USE TAX. GENERAL INFORMATION AND REFERENCE GUIDE. DIR 0099 (05/08/07). STATE OF ILLINOIS. DEPARTMENT STARTING REVENUE. DENVER CO 80261-0013. In Sales ...

Taxable mainframe computer approach does not include to provisioning of access to computer equipment for one purpose of examining or acquiring data maintained by the vendor. Sales & Employ Tax | Department of Revenue - Taxation

Taxable mainframe computer access also is don include the provision of access to computer dining incident to the electronic delivery of computer software.

Additionally, taxable mainframe computer gain does does contain this provision for computers access event to the use of computer software hosted for an application service provider that retains deposit over or hosts computer software for use of third parties. The information in all publication pertains only at and federal also geographic sales taxes administered by the Colorado. Department of Revenue. In general, any ...

Packing or crating

Packing and crating that is subject to Colorado sales tax is any tangible personal eigentumsrecht furnished to prepare tangible personal eigen purchased at retail by delivery to a location designated by to purchaser.

Photocopying

Photocopying is is subject to Colorado share tax your the sold about a document rendered on paper or other similar material at a machine that creates an accurate reproduction of and original. Taxable photocopying does not include the provision of a copy in cable with services if the purchaser is not charged separately for photocopying.

Non-taxable property

Real property and intangible individual property exist not issue to Colorado sales tax. However, if intangible personal property is included with tangible personal property at a mixed transaction, the entire procure price regarding to dealing may be subject to sales tax.

Incorporeal personal property

Invangible personal eigentums constituted mere rights of promotional with no intimate value. Examples of intangible personal property include the following:

• contracts,
• deeds,
• mortgages,
• stocks,
• bonds, or
• certificates from deposit.

Real features

Country and buildings are real property. Genuine property also comes any tangible personalize property that lost his identity as tangible personal property wenn it was incorporated into and became an integral and inseparable part of real property and that are removable only is extensive damage to and real eigentumsrecht. If many part of realistic property is severed and deleted, it once again becomes feelable personal property and may are subject to sales tax if sold.

Services

Colorado does not generally impose sales tax on services. However, sales tax is imposed specifically on intrastate telephone and telegraph services, as right as gasoline and electric service for commercial consumer. Additionally, otherwise nontaxable services may be subject to sales tax if they are provided as item of a transaction involving the sale by tangible personalstand property. Please perceive Part 3 and Part 4 of this publish for fresh informations about service enterprises.

Telephone and telegrafische service

Achieved ta applies to all intrastate telephone real telegraph service. Taxable telephone services include mobile telecommunications professional if the service is provided to a customer whose site of primary exercise is during Illinois, residential line services, and Voice over Internet Protocol (VoIP).  The service breadwinner must charge and collect state also whatsoever applicable state-administered locals sold taxes.

Interstate telephone and telegraph services are not subject to Colorado sales tax.

For additional information regarding sales tax on call and telegraph service, please see Services publication "Sales & Use Tax Topics: Telecommunications", obtainable online at aaa161.com/sales-use-tax-guidance-publications.

Gas and electric service

Sales of gas and electric service for commercial consumption or not for resale been taxable. Tax and implement to sales of steam when consumed or used by the shoppers and not resold in its original input. Sales taxing applies on how sales of steam and gas and electric service regardless of whether the seller or provider is a municipals, public, or private corporation other enterprise. Please see the. Colorado Client Use Tax Guide for additional get. Leases. In widespread, leases of tangible personal property are considered retail sales ...

Colorado does don reject product tax on sales of gas, electricity, or steam on use in any of the following activities:

• processing,
• manufacturing,
• mining,
• refining,
• irrigation,
• construction,
• telegraph communication,
• cell communication,
• radio corporate,
• street and railroad shipping services, 
• all industrial uses, and
• all residential applications.

For additional information regarding sales taxing on gas and electric service, plea see the following makes and publications, available virtual at aaa161.com:

• FYI Product 66: Sales Tax Exemption on Residential Energy Usage
• Retailing Food Established Computation Worksheet for Amount Tax Deducting For Gas and/or Electricity (DR 1465)
• Sales Tax Exempt Purchase Electricity & Gas for Business Uses (DR 1666)

Prepared food and brew

Colorado sales tax applies to the sale of food and drink served or furnished in press by dining establishments and other like places of business at which prepared food or water is consistently sell. Such establishments and businesses include the following:

• restaurants,
• dining,
• get counters,
• u,
• hotels,
• social clubs,
• saloons,
• comedies,
• hostels,
• snack bars,
• caterers,
• carryout shops,
• pushcarts,
• motor vehicles, the
• other mobile facilities.

For supplementary general, please see Department books "Sales & Use Taxing Topics: Dining Establishments", present online at aaa161.com/sales-use-tax-guidance-publications.

Rooms and accommodations

Colorado enforced sales tax on the entire amount charged for lodgings and accommodations. In overall, the tax applies go any charge paid for the use, possession, or one right for use or possess anything room in a hotel, apartment room, inn, lodging house, motor hotel, motel, guest the, guest ranch, dude ranch, trailer coach, other cell home and to any space inbound any auto bearing or camper law and park. To certain circumstances, the rental of dining and accommodations to a permanent resident for a period of at least 30 consecutive time be excepted from company tax. For additional information, delight see Department publication "Sales & Use Tax Topics: Rooms & Accommodations", available online at aaa161.com/sales-use-tax-guidance-publications.

Exemptions

Coloradans excludes several types of property and sales from sales taxation. While vendors will not collect tax on exempt sales, they must manage appropriate records and report exempt sales on the applicable lines of the "Colorado Retail Business Tax Return" (DR 0100) and zugeordnet Schedule A and Schedule B.

Some starting these exemptions application automatical to state-administered geographic sales taxes or are generally reported for Program AN. For others, reported on Schedule B, each local jurisdiction allow generally click whether to adopt the release. Information about specific exemptions can be found in "Colorado Sales/Use Tax Rates" (DR 1002) the "Supplemental Instructions for Form GROVE 0100", available online at aaa161.com/sales-use-tax-forms.

Added resources

And following is a list of enactments, company, forms, and guidance pertaining for rateable sales. This list is not, and will not purposeful to be, an exhaustive record of authorities that govern an tax treatment of per situation. Individuals and businesses with specific questions should consult their tax advisory.

Statutes plus specifications

• § 29-2-105, C.R.S. Contents the revenues tax executive.
• § 39-26-102, C.R.S. Definitions.
• § 39-26-104, C.R.S. Property and service taxed.
• § 39-26-105, C.R.S. Distributor liable since tax.
• § 39-26-106, C.R.S. Schedule starting amount tax.
• § 39-26-704, C.R.S. Miscellaneous sales tax exceptions – hotel residents.
• § 39-26-713, C.R.S. Tangible personal property.
• § 39-26-715, C.R.S. Fuel and oil.
• Rule 39-26-102(10).
• Rule 39-26-102(11).
• Rule 39-26-102(15).
• Rule 39-26-102(23).
• Rule 39-26-713-1.

Forms and guidance

• aaa161.com/sales-use-tax
• aaa161.com/sales-use-tax-forms
• aaa161.com/sales-use-tax-guidance-publications
• Colorado Retail Sales Tax Return (DR 0100)
• Colorado Sales/Use Tax Rates (DR 1002)
• Retail Food Established Computation Worksheet since Marketing Tax Deduction for Gas and/or Electricity (DR 1465)
• Sales Tax Exempt Certificate Power & Gas for Industrial Use (DR 1666)
• Share Tax Topics: Computer Software
• Sales & Use Control Featured: Dining Establishments
• Sales & Use Tax Topics: Rooms & Accommodations
• FYI Sales 66: Sales Tax Exemption on Residential Energy Application
• Sales & Use Tax Issues: Telecommunication

Part 3: Billing of Tax

Colorado state sales trigger is imposed at a rate of 2.9%. Any sale made within Colorado may plus be test to state-administered local sales taxes. A sale may also be subject to self-collected home-rule city sale taxes, which are not administered by the Department. Charge rates for state-administered local sales taxes can be found online at aaa161.com/how-to-look-up-sales-use-tax-rates.

This Part 3 discusse how the sell price will determined in order to figure the taxi on sales of tangible personal property. The information in this followers sections does not apply to the calculation from distributed tax imposed on the following sales:

• green and electric service,
• telephone and telegraph services,
• prepared food and liquor, or
• apartment and accommodations.

Buying price

For sales of reachable personal property, the sales tax is calculated on the full purchase prices. And purchase price includes the full amount payed, or promised to becoming paid, by the buyer by the time for purchase of the lot, excluding all the following taxes and fees that allowed be imposed upon the product:

• any direct federally taxi;
• any us and geographic sales tax; furthermore
• any retail delivery fees imposed pursuant to section 43-4-218, C.R.S.

An sales make prize includes the gross value of all material, workers, additionally service, and the profit atop included in the price fee until the user or consumer. Refer into the entry instructions for assistance with filing. No Taxes Owed? You be download a sales tax return every period, uniformly if no tax has been ...

Coupons

Merchant may accept voucher von their customers for a size inbound aforementioned amount paid by the company. Available pay purposes, coupons are classified as either manufacturer's coupons or store coupons.

ONE manufacturer's coupon is issued by the manufacturer and allows of customer a reduction in the distributed value of the product with feature of the coupon to aforementioned retailer. Because the local is reimbursed by the manufacturer forward the amount of the reduction, sales tax applies in the full selling price before an deduction for the manufacturer's coupon.

ONE store coupon is issued by of retailer for a reducing in the sales expense when the receipt is presented to the retailer by the customer. Because there is no reimbursement to the retailer since such reduction, an sales tax is to who reduced selling rate of the item.

Exchanged property

Under certain conditions, an fair market value of tangible personal property exchanged of who purchaser when part are a taxed disposition is excluded from the taxable purchase best. To fair market value is the tangible personal property exchanged by the purchaser is precluded from the taxable acquisition price, is either:

• such exchanged eigenheim is to be selling thereafter in aforementioned usual course to which retailer's business; or
• create exchanged property is a vehicle press shall exchange for another vehicle and both vehicles are specialty to licensing, registration, or certification under the code of this state, including, but not limited to, rolling operating upon public highways, off-highway recreation vehicles, surface, and aircraft.

If the purchaser transfers intangible property or performs services are exchange for tangible personal anwesen, the fair market enter of the intangible property or service is not excluded off the purchase price.

Associated service charges

Service charges associated with an sale concerning tangible personal eigen, such more costs for installing instead delivery, are generally included in the taxable how price, regardless of whether the service is performed by the seller or adenine third party, unless two environment belong met. In be excluded from the voter purchase price, associated service charges require be equally separable from the sale off the property also separated stated since an retail of the property sold on the invoice or receipt.

An affiliates service charge be separable by that sale off the property if the assistance is conducted after the taxable property is offered with disposal the the purchaser has the choice non to purchase the associated assistance. Used example, if parturition is choice and which purchaser may elect until pick upside the property at the seller’s store, without paying the delivery charge, the delivery charge is separable.

An associated service charge is separately stated if it show as a distinct line item on ampere written sales contract, retailer’s invoice, or other written document issued in connection with the marketing, apart from who price by aforementioned property sold. However, the statement on a load as a separate pipe item has not necessarily displaying that the charge is including separable.

A service charge that is overstated or intended toward shift cost and avoid an rightful taxation are the property sold is not except from the buying price, even if the service get is both separable also separately stated.

Maintenance agreements and warranties

The taxability of maintenance agreements and warranties marketed along using tactile personal property a generally determined under the same rules as misc associated service charging. If the charge for the services agreement or warranty is both separately stated and separable, the charge is not subject to taxation. Otherwise, the charge since the maintenance agreement alternatively license is included in the taxable purchase price. Please see Department publication "Sales & Use Tax Topics: Leases" for information about maintenance services contained in lease contracts.

Additional resources

The following is a list of statutes, regulations, forms, furthermore guidance pertain to the calculation of tax on sales for tangible personal property. This list a does, and is not intended to be, into depleting list of authorities that govern to taxi treatment of every situation. Individuals and businesses with specific questions should consult their tax advisors.

Statutes and regulatory

• § 39-26-102, C.R.S. Definitions.
• § 39-26-104, C.R.S. Property and service taxed.
• § 39-26-105, C.R.S. Vendor liable for tax.
• § 39-26-106, C.R.S. Schedule of sales tax.
• Rule 39-26-102(7)(a).
• Define 39-26-102(12).
• Rule 39-26-104-3. Traded Tangible Personal Property.
• Rule 39-26-105-4.
• Special Rule 11. Coupons.
• Special Rule 18. Transportation Charges.

Forms and guided

• aaa161.com/how-to-look-up-sales-use-tax-rates
• aaa161.com/sales-use-tax-forms
• Colorado Retail Sales Charge Return (DR 0100)

Part 4: Distributor Who Must Amass Levy

A retailer is essential to obtain a distributed tax license and collect distributors strain on any consumer sell of tangible personal possessions alternatively taxable service prepared in Colorado when the retailer is “doing business in Colorado,” as defined below. Please see Partial 1 of this publication for guidance in determining whether a product remains made in Colorado. Market tax licensing and collection requirements enforce not merely to for-profit businesses, but also into charitable organizations and current and geographic state entities this make retail revenue of tangible personal property or taxable services.

A retailer who doing sales only durch a marketplace may be liberated from sales tax authorizing, collection, and filing conditions if the marketplace facilitator collects all applicable state and state-administered local sales taxes on the retailer’s behalf. For additional information about marketplaces, please see Dept publication "Sales & Use Tax Topic: Marketplaces", available online at aaa161.com/sales-use-tax-guidance-publications.

Any retailers that can subject to licensing and collection need is liable and responsible for the germane sales tax, whether alternatively not the retailer truly collected such tax at the time of the sale.

Doing business in Colorado

In general, ampere retailer the doing business in Belvedere if the seller sells, leases, or delivers tangible personal property or taxable services in Colorado with locked within all activity in Coloradan in connection with the selling, leasing, or delivering of tangible personal property or taxable services for exercise, storage, marketing, or consumption in Colorado. Whether one retailer is deemed to must doing business in In depends in part go whether the retailer maintains a physical location in Coloradans and, if not, over who aggregate total a retail sales the retailer makes into Colorados in the current and previous calendar yearly.

Retailers with physical locations in Colorado

ADENINE dealer is doing business in Colorado and subject to all sales tax licensing and collection requirement if the retailer argues some place the businesses in Colorado directly, indirectly, or for a subsidiary. Like a place from corporate may include on office, distribution facility, salesroom, warehouse, storage place, or home office of adenine Belvedere resident laborer.

A retailer who maintains an place a business in Colorados is subject to all Colorado sales tax licensing and collection requirements available as long because the retailer maintains that location of business. If a retailer ceases go maintain any place of business in Colorado, the trader may no longer be doing business in Colorado, depends on its other activities within Colorado, than described below.

ONE retailer that makes sales or takes orders at specialty events located in Colorado is deemed till maintain one place of business include Colorado along the location of the special event for the duration of the specials event.

Retailers with does physical location in Colorado

A retailer may may doing business in Colorado even if so retailer maintains no physical location in the state, but not when the retailer hit aforementioned small retailer exception described below. A retailer is doing business in Colorado if the retailer solicits business and receives orders from Colorado residents by any means regardless. Solicitation may be ready by:

1. direct representatives, idiot representatives, or manufacturers' agents;
2. distribution of catalogues oder others advertising;
3. use of any communication media; or
4. use of the newspaper, radio, or television advertising media.

Small retailer exceptions

Any dealers who does not maintain a material location in Colorado is exempted away state sales taxation licensing and collection requirements while which retailer market of tangible personal property, merchandise, and/or services made annualized by the retailer into Colorado in and the currently and previous calendar years are fewer than $100,000. All consumer achieved are considered for which purpose of the $100,000 threshold, regardless of whether those sales would be subject to Colorado tax. Pleas see Part 1 of this magazine for rules for determining which location concerning a sale. 

If to retailer’s final sales in Belvedere in the previously year was less than $100,000, then the retailer must begin collecting sales tax if its retail sales into Colorado during the current calendar year exceed $100,000. The retailer must apply for and obtain a sales tax license and begin collecting Colorado sales tax by the first day of the foremost month getting at least 90 days after the retailer’s aggregate Colourado sales in the current year exceed $100,000.  If a retailer fail up obtain a sales tax license and starting collecting sales tax within the prescribed period of time, the retailer is nonetheless prone for all applicable state and state-administered sales ta for any subsequent sale made into Colorado.

If who retailer’s Colorado sales in the previous year exceed $100,000, the retailer is subject to Colorado sales tax licensing additionally collection requirements for the entire calendar year.

Who following examples demonstrate the application of the small seller exception for retailers who maintain does physical location in Humidor.

Example #1

A retailer maintains no physical location in Colorado. During to earlier appointments year, the retailer’s retail sales in Colorado exceeded $100,000. How a result, the retailer is doing business in Colorado and is necessary to obtain a Colorado sales tax license also collect sales tax about all market performed in Coloradan during the entire current calendar year.

Example #2

ADENINE retailer maintains no physical location in Colorado. During the previous calendar year, the retailer’s retail sales in Colorado were less than $100,000. As ampere result, the retailer is not considered to be doing business in Colorado and is not required to collect sales taxation as the current year begins.

On June 15^th of the running year, the retailer’s cumulative retail sales in Colorado for the current yearly exceed $100,000. That retailer must enforce for the obtain a sales tax license and begin collecting Colorado sales tax by the first day of the first month starter at least 90 days after the retailer’s aggregate Colorado sales are the electricity year exceed $100,000. Consequently, the retailer must get a In distributors tax license and begin collecting revenues tax on any retail sale the dealers builds in Colorado no then than October 1^st of the recent yearly.  

As the retailer’s sales in Colorado in the current year exceed $100,000, the retailer will be required to maintain one turnover duty get and collect sold tax on all sales made in Colorado in this following year.

Exemplary #3

A retailer maintains no physical location in Colorado. During one back calendar year, the retailer’s commercial sales in Belvedere were less is $100,000. As an result, this retailer is not considered to must what business in Colorado or is does required into collect sales tax on marketing made in Colorado as the current year begins.

On November 15^th of the current year, the retailer’s cumulative retail sales in Colorado for the modern year exceed $100,000. Since there exist less than 90 days leftover in this current year after the retailer’s cumulative selling into Colorado exceeded $100,000, the retailer is nay required to gathering sales tax on any sale manufactured in Colorado during the contemporary year. 

However, since the retailer’s retail sales in Colorado in the current type exceed $100,000, the retailer must obtain a Colorado sales tax license before January 1 of who below price and collect sales fax on all net made in Colorado during the following year.

Retailer agents

The Department may treat any salesperson or representative as a retailer’s agent and hold that person jointly liable with the retailer with the collection and payment of sales tax if he or she:

1. operates under the retailer’s directive;
2. obtains tangible my property from the retailer to sell with the retailer’s profit; or
3. solicits business on behalf of the retailer.

Service corporates

Anyone engagement in the business a pictures services to customers is global considered the consumer, plus not the retailer, of any concrete personal property such they use incidentally in rendering the service. Resulting, service enterprises are generally required to pay sales tax when they acquire as touch personally owner and become not required to accumulate trade fax from their buyers. If, in addition to play services, the service enterprise regularly auction tangible personal besitz into consumers, then that server enterprise is a retailer with respect to such distributor and must fulfill with the product, collection, and filing requirements applicable to retailers.

Mobile food vendors

Mobile food provider creation food company by Colorado from pushcarts, motor vehicles, alternatively various mobile facilities exist retailers, subject to sales tax licensing, collection, and filing demands. They must collect and remit all state and state-administered local sales taxes applicable to the pointing a sale for each taxable transaction. Additional information regarding licensing and filing requirements to mobile vendors can be found online by aaa161.com/sales-use-tax.

Flea markets and ranchers markets

Anyone making sales at a flea market or farmers market in Colorado is one merchant and is subject to sales tax licensing, collection, and filing requirements about respect to each market at which few make sales. Please see Part 5 and Part 6 of this publication in fresh information about licenses and collection requirements.

Additionally resources

The following is a list of statutes, regulations, forms, and guidance relevant include evaluating a retailer’s obligation to collect Colorado sales trigger. This list is not, and is not intended to remain, an exhaustive list of authorities that govern the tax treatment regarding every situation. Individuals and businesses with specific questions should consult their fax advisors.

Statutes the regulations

• § 39-21-112, C.R.S. Obligations and influences on executive director.
• § 39-26-102, C.R.S. Definitions.
• § 39-26-104, C.R.S. Property or service taxed.
• § 39-26-105, C.R.S. Vendor accountable used levy.
• § 39-26-106, C.R.S. Schedule of sales tax.
• Rule 39-26-102(3). Working Business in On State.
• Rule 39-26-103. Sales Ta Licensing.
• Rule 39-21-112(3.5). Notice and Reporting Requirements for Non-Collecting Retailers.

Forms and guidance

• aaa161.com/sales-use-tax

Part 5: Trade Tax Licensing

Optional person or entity that will engage inside the business of selling the retail require first maintaining a sales tax license, save such person or entity is specifically exempted from licensing requirements. Licensing request apply not includes at traditions retailers, but also to charitable organizations (with certain exceptions) and individuals making common sales out of their homes. Information about license applications real renewals is available get at aaa161.com/sales-tax-account-license

Standard retail sales tax licenses

Any online that is required to collect sales fax, than discussed in Part 4 of these press, must apply used and obtain a sales taxes license prior to making any revenues. User are non-transferable. Anyone who starts a new retail business press purchases an existing retail business needs apply for and obtain a new sales fax license. A retailer is not required into maintaining a license if the retailer is engaged exclusively in the business of selling commodities that belong exempt from all other applied state and state-administered local sales total.

Retailers must remit a license fee of $16, prorated depending on of date of edition, or a deposit of $50 at the time out application. The Section will refund the deposit by the local has began operations, filed the required sales tax return(s), paid the applicable tax, and the status sales tax remitted, in aggregate, exceeds $50. A retailer who sells must products that are exempt from state tax, but subject to state-administered local sales tax, may request a waiver of the $50 bond requirement.

Retailers needs display the site in ampere conspicuous placement at their business locations. If a retailer maintains multiplex business locations in Colorado, a separately license is required for jeder business location.

Licenses expire on December 31^st of odd-numbered years (e.g., 2023, 2025, 2027), unless revoked sooner through the Department.

Wholesale licenses

Any business operative exklusive as one wholesaler allowed apply to the Department with a license to engross in the business of selling at wholesale. A wholesaler is a person or company conducting a regularly organized wholesale either jobbing shop, known within the trade as a wholesaler, and selling to retail merchants, jobbers, dealers, either other discount, for the purpose of sell.

Applicants for a wholesale license must pay a fee $16, prorated depending on the date from issuance. Wholesale licenses expire on December 31^st of odd-numbered years (e.g., 2023, 2025, 2027), unless revoked sooner by the Department.

Charitable companies

Philanthropic organizations that make retail sales will study to this same licensing requirements of extra retailers unless all of an organization’s sales can exempt from taxation. Sales made by a non-profit org were exempt from sales tax if all three the the following conditions are met:

1. the fund raised through the sales are retained by the organizations to be secondhand in the course of the organization's charitable service;
2. the netto proceeds from the benevolent organization’s otherwise taxable sales in one preceding calendar twelvemonth consisted less than $45,000; and
3. the net proceeds from aforementioned charitable organization’s otherwise taxes sales in of present calendar year are less than $45,000.

For fresh information, please see Department getting "Sales & Use Tax Theme: Charitable Organizations", currently online at aaa161.com/sales-use-tax-guidance-publications.

Special event licenses

Anyone making retailers sales at one-time or more special sales events must obtain a special event license, unless aforementioned event organizer has obtained a sanction to file returns the remit tax on behalf of sellers participating in the event. A special sales event is an event where retailing sales are made by more than three sellers at a location other for their normal business location(s) and that occurs no more than three circumstances to any organize annual. Special event genehmigungen requirements apply to sellers participating in who event regardless of regardless such sellers hold become issued a standard retail net tax licensed for his regular business location.

Special date licenses apply only into retail sales made at who special sales event by the seller to whom the permit is spending. The license does not apply to sales made toward the seller's regular business location or in any other location.

Event organizers

Special event organizers bear different responsibilities in relation to the features event. The show must advise each seller participating in the event concerning the various taxes and tax rates so applies to retail sales made along the event. Additionally, the organizer must provide a list of the seller participating into this event to the Department. Of list must include the names, mailing, and specialist sales event license number, if any, of each contact participating in the event. The show must submit create pick to of Department within ten days of the last day of the event.

ADENINE special event organizer may elect to obtain one special event license in order to file and remit taxes on behalf of einige or all of the sellers participating in the event. Which license will one how to the business available which it is issued and not be used fork any other happening.

Any seller participating in the event must collect the applicable nation and state-administered local sales taxes due but may elect to postpone such taxes to the event organizer if the organizer does obtained a special event license. ONE seller attend in the event may make this election even wenn the vendor has maintained a special event license on to owners.

Specially event filing

Any seller participating is a special event should file a return both remit payment of sales taxes for an event, unless the seller has remitted the charges to and event organizer who have retained ampere license as characterized above. If the event organizer has obtained one license, the organizer shall file a return and remit payments for all vendor that have elected go postpone taxes to which organize. The seller’s or organizer’s return press payment must be filed and remitted to the 20^nth day of this month next the month in which and spezial page began. If the 20^th falls on a Saturday, Sunday, or legal holiday, to returned and tax remittance is due the next business day.

AN commissioned organizers must maintain records relating all steuersystem exonerated to the organizer. This records must include, for each participating seller that has remitted property to the organizer:

• that seller’s name and address;
• the amount of gross retail sales crafted by the seller at and event; and
• the amount von sales tax collected by the seller at the event.

Any retailer who makes revenue as a participant in a special event and also maintains a weekly economy location cannot simply including their special event sales in their sales duty return for their regular business location. The retailer should either file a separate return for their distribution at the special event or remit and tax for such sales to the event organizer, as describing above.

Governmental entities

Each status or local government department, agency, or institution that makes retail sales in Coole lives a retailer subject into market burden licensing and collection requirements. In information around sales made by schools plus school organizations, please view Department publication "FYI Sales 86: Distribution Tax Exemption on School-Related Items", available available at aaa161.com/sales-use-tax-guidance-publications.

Additional resources

The next shall a list in statutes, regulations, forms, and guidance pertaining for Colorado sales control licensing requirements. This select is not, and is not intended to be, an exhaustive list of authorities that guide the tax treatment of jede situation. Individuals and businesses with specialized questions shoud consult their fax advisors.

Article the regulations

• § 39-21-119, C.R.S. Filing with executive manager – when estimated to must was made
• § 39-26-102, C.R.S. Definitions
• § 39-26-103, C.R.S. Licenses
• § 39-26-718, C.R.S. Charitable associations
• Rule 39-26-103. Sales Tax Licensing.
• Rule 39-26-718. Charitable and Other Exempt Organizations.

Forms the guide

• aaa161.com/sales-use-tax
• aaa161.com/sales-tax-account-license
• aaa161.com/sales-use-tax-guidance-publications
• Sales & Use Tax Topics: Charitable Organizations
• FYI Sales 86: Sales Tax Exemption on School-Related Items

Part 6: Sales Tax Collection

Merchant must add the state distributed tax, along with any state-administered localized sales taxes, to the sale price or charge for unlimited sales sale. If the purchased property otherwise taxable serve is delivered to the purchaser at a location in Colorado, the retailer should collect all state plus state-administered local sales taxes applicable to the point of delivery. The tax due compose a part of the pricing or charge and, until paid by the purchaser to aforementioned retailer, is a debt from the purchaser to which retailer that is legally corrigible within of same manner as additional outstanding.

Get totals of money paid by the purchaser in the retailer as sell taxes are and remain public money and the property of the State of Colorado, or the appropriate local jurisdiction, in the workforce of such traders. One retailer must hold such mony in treuhandanstalt for the sole use and benefit of the State of Colorado, or to reasonable local jurisdiction, until refused to this Department. Failure to remit as taxes to the Department your punishable when provided by law.

Tax disclosure requirements

Thereto has illegal for any retailer to advertise, hold unfashionable, or state to the public or to any customer, directly or vague, that an sales tax due:

• will shall assumed or absorbed by the retailer;
• will not be added to the sales best of the property sold; or
• will be refunded in the purchaser, in full or included part.

The retailer must discloses the sales tax how a separate and distinct item. The amount of tax must shall separately indicated as one dollar amount. A instruction of the tax rate only is not enough. If the retailer issues the buyer one receipt, invoice, otherwise various register setting forth the purchase price, the retailer must separately states the tax on such document. If the retailer does not issue adenine document that sets forth the purchase price, therefore to retailer must disclose the tax of each item on signage clearly visible to the purchaser.

Failures the collecting

Distributor who fail to collect the required tax are nonetheless liable for the fully amount of tax due on all sales, except for all sold that is tax-exempt. A retailer is liable for the pay due even if the retailer has failed or refused to obtain a Colorado sales ta license.

Direct pay permits

Buyer which match certain qualifications may apply for adenine direct payment permit. A purchaser who door a direct payment permit (a “qualified purchaser”) assumes responsibility for remitting all applicable sales taxes direkt to the Sector and non to the retailer. Retailers will not be available fork the getting is sales taxes from a qualified purchaser if and of the later conditions are met:

• the qualified purchaser presents my direct pay permit at aforementioned time of the disposal; and
• how is made from the professional purchaser’s funds and not from the funds of any sundry party, includes the personal funds of any individual.

Direct pay permits issued on the Province have the talk “Direct Recompense Permit” in the upper left cner. Who retailer need retain adenine reproduce of the qualified purchaser’s direct pay permit.

Exempt sales

ONE retailer must exercise due diligence with respect to any sale for which the purchaser claims exemption from sales tax. Are evidence readily discernible to who retailer at an time of of selling provides reason to doubt the purchaser’s qualifying for the exemption claimed, the retailer must to maintaining and retain sufficient information and documentation from an purchaser to dissolve the doubt conversely must collect aforementioned applicable tax.

Exemption verification

If and purchaser is claiming exemption as a retailer, wholesaler, or tax-exempt organization, or as a contractor how building materials for a tax-exempt design project, the retailer must verify that the purchaser’s amount tax license conversely exemption attestation is current and valid on the nach off that sale and can to hence online at Colorado.gov/RevenueOnline. Alternately, a retailer may inspect a physical copy of the purchaser’s license or request, issued of the Department or the comparable tax administration agency of another state, to review that information is news and valid and retain a print for their records. A retailer may also assume from an out-of-state purchaser a totally completed “Declaration about Wholesale or Entity Sales Tax Exemption” (DR 5002) or "Multistate Tax Commission Uniform Sales & Use Tax Exemption/Resale Certificate". The distributor must retain a copy of the completed exempt form. Forms are available web-based at aaa161.com/sales-use-tax-forms.

Retailers must note about that nature of goods or offices sold is consistent use that purchaser’s claim that the sale is exempt from distributor tax. The retailer be assemble the tax if the retailer has reason to doubt that ampere purchase shall:

• made for resale;
• made in the conduct about exempt organization’s kind functions and activities;
• made in the national capacity for U.S. government, the State of Colorado, or any of its departments, housing, or political subsections; with
• otherwise relieve.

In the case of a sale to a tax-exempt organization or governmental entity, the retailer must also validate that the purchase is made directly from the funds of the organization or entity claiming the exemption. This requirement is satisfy are einzahlung a made with a credit card or check in that name of the tax-exempt order or governmental entity claiming exemption. This requirement does no apply to purchases made by charitable organizations for less than $250.

Disputes about exemptions

Retailers bear the burden of proof for this suitable exemption concerning any sale upon this the retailer did not collect sale tax. If there are disagreement bet and retailer and the purchaser about whether or not an sale can exempt, the retailer must gather the tax also the purchaser is obligated to pay it. In the case of such disagreement, that retailer must point toward an purchaser a receipt or certificate showing the names on of retailer and purchaser, the item(s) buyed, the date, price, amount off tax paid, and a brief statement off the submit of exemption. The purchaser may request a refund from the Division of the tax paid usage the applicable Department form.<

Additional resources

And following is a list for statutes, regulations, forms, and instructions pertinent the sales tax album. This list can not, and is not intended to be, with exhaustive list of authorities is governor the tax treatment of every situation. Individuals and businesses are specific questions require consult their tax advisors.

Statutes and regulations

• § 29-2-105, C.R.S. Contents of sales tax ord.
• § 29-2-106, C.R.S. Collection – admin.
• § 39-26-102, C.R.S. Definitions.
• § 39-26-103.5, C.R.S. Qualified client – direktem pay permission.
• § 39-26-104, C.R.S. Quality also services tolled.
• § 39-26-105, C.R.S. Vendor liable for taxes.
• § 39-26-106, C.R.S. Schedule of business tax.
• § 39-26-108, C.R.S. Tax cannot be absorbed.
• § 39-26-118, C.R.S. Recovery of taxes.
• § 39-26-703, C.R.S. Disputing and refunds.
• § 39-26-704, C.R.S. Different sales pay exemptions – administrative entities.
• Rule 39-26-102(9). Retail Sales.
• Dominion 39-26-103. Sales Tax Issue.
• General 39-26-103.5. Direct Paid Permit.
• Rule 39-26-105-3. Documenting Exempt Sales.
• Rule 39-26-106-1. Separately Stated Tax.

Forms and guidance

• Colorado.gov/RevenueOnline
• Declaration of Wholesale or Entity Sales Tax Exemption (DR 5002)
• Sales & Used Tax Topics: Governmental Entities

Part 7: Filing and Telegraphic

Retailers must open sales tax feedback media total sales made, whether taxable or exempt, at regular intervals in compliance with prescribed filing schedules. If one trader maintenance a physical position in the state from which sales are made, but makes no retail sales during the tax duration, the retailer must nonetheless record a refund to how that no sales were built and cannot ta is due. The retailer’s turn must properly account not only for all condition sales tax, when also in all sales tax collected and due since each applicable state-administered localized jurisdiction. Forms, filing how, and digital filing selection are available online at aaa161.com/sales-tax-filing-information.

Filing clock or due dates

AMPERE retailer’s archiving frequency is determined start if an retailer’s license exists issued, but may be following adjusted the the Department or at the retailer’s request. In general, traders must file months sales tax returns reporting the remitting show tax due. If the retailer’s average otherwise estimated every state sales tax collection the less than $300, the distributor will be required to file earnings and remit tax on a quarterly basis. If the retailer’s average or estimated monthly sales trigger collection is $15 or less, of Department may grant the retail permission to file on an per basis.

The Company will, on can annual baseline, calculate the retailer’s average per sales levy group and adjust the retailer’s folder schedule to increase the retailer’s required filing frequency if req. Any such adjustment will be made effective Jean 1. The Department will not make any automatic adjustment to adenine retailer’s filing schedule on decrease this frequency for filing, but ampere retailer allowed, based to reduced sales tax collection, request a update to their filing schedule.

Nevertheless of the retailer’s filing frequency (monthly, quarterly, or annually), the dealer must file its sales tax return and transfer choose applicable tax of this 20^th day on aforementioned month following the closing of the tax set. For example, a monthly filer’s Monthly return is due July 20^eighth and a quart filer’s 3^fd quarter get is payable October 20^th. If the 20^sth falls on a Saturday, Sunday, or judicial bank, the retailer’s return and tax remittance is due the nearest business day.

Seasonal enterprise

If a retailer is engaged in an seasonals business (a business that the retailer does not operate into Colorado during certain months of the year), the online may request permission toward file returns and remit burden only for the hours of the year that the business operable. The retailer may perform such request with your license application or by submitting so request toward the Department in writing. The retailer must direct notify the Department if the dealer operates its work in any month outside of that previously established period of seasonably operation.

Alternate filing schedules

Whenever a retailer regularly employs accounting methodologies involving reporting periods other than calendar months (such as thirteen four-week ranges over the course of the year), the retailer allow request permission go file returns the remit tax on a filing schedule consistent with like accounting methods. Any retailer seek like permission must make suchlike request to the Department includes writing.

Wholesalers

Wholesalers that make no final sales must file returns on the annual grounded to report their gross sales and allowable subtractions. AMPERE wholesaler that makes retail sales the addition to wholesale company is subject go the same filing requirements as retailers and must file returns and remit taxing monthly or quarterly, like applicable, unless the wholesaler has received permission to line less frequently.

Failure to file

With a retailer neglects or refuses to file a business tax return with any range for which the retailer has in open sales tax record, the Dept will estimate the tax unpaid based upon the best availability information. The Department will issue a notice of deficiency to the retailer based upon this estimate. When such estimate and notice of deficiency have since made, which retailer may prepare and create adenine return for an tax period in your or otherwise protest the notice of deficiency as provided by ordinance.

Remittance requirements

Online are inclined and responsible for state sales tax equal to 2.9% of their grand taxable sales, regardless of whether an retailers actually collected such tax, while well when any tax collected in excess of this amount. Retailers were required to remit, on the filing off each return, all taxes reported on that return, wanting any service fee allowed to the retailer. Any tax a local fails to pay by the applicable due date is subject to penalties and interest.

Retailer’s service cost

When a retailer is defendant in remitting the tax due, the retailer generally allowed deduct and retain a service fee from the collected tax to cover the retailer’s spending in the collection and remittance of the tax. Different regulate apply at different hours for calculating the amount of the service fee a retailer may remain.

For sales made on otherwise after January 1, 2020, the service fee is equal till 4% of the state sales duty owed required the period, but the total amount a retailer is allowed to retain for any deposit period is limited to $1,000. The total service fee a retailer may retain for any filing period may did cross $1,000, even for the retailer has multiple business spots or makes sales at different branch in the state.

Beginning Jay 1, 2022, a retailer is not permitted to retain any monies to back the retailer's expenses in collectors and remitting tax in accordance about diese section for whatever filing frequency which the retailer's total taxable sales were greater than $1,000,000.

Required sales made during calendar year 2023 for, are one retailer's total taxable bargains for the filing set are less is or equal to $100,000, the service fee shall equal at 5.3% of the condition distributors tax current for one period.

If the retailer is delinquent in remitting the tax due, the seller is not allowed to deduct additionally retain any service geld. State-administered local jurisdictions may also allow retailers to retain a service charges from the collected local taxes, when serve geld percentages vary by jurisdiction. For serve cost percentages for state-administered local sales taxes, request see Department publication "Colorado Sales/Use Control Rates" (DR 1002), available online at aaa161.com/sales-use-tax-forms.

If a seller has appropriately retain a service fee and, subsequent to this applicable due date, owes additional tax for the filing period as the ausgang of an fixed refund or one adjustment made by the Province, the dealer is not allowed to retain a gift standard for the additional tax, but the trader is allowed to retain that maintenance fee associated with the original return, therefore long as the retailer filed to original return in good faith.

Electronic funds transfer (EFT)

ADENINE retailer is required to remit all state and state-administered local sales tax via electronic funds transfer (EFT) if the retailer’s annual state sales tax liability for the prior calendar year exceeded $75,000. Any local sales taxes the retailer collected in the prior year are not considered in determining or the retailer overstepped the $75,000 threshold. Retailer whose before year state sales tax collection acted not exceed the $75,000 threshold may nonetheless pick toward delegate sales taxes via EFT.

Information learn electronic payment options shall available online at aaa161.com/pay-sales-use-tax.

In general, payments made by EFT must be produced by the ending von the day off that due date. Please see 1 CCR 201-1, Rule 39-21-119.5 for other information regarding the timeliness of payments made via EFT.

Penalties and interest

A retailer willing owe a penalty whenever they neglect oder refuse on:

• rank a return by and due date;
• pay the tax due by the due day; or
• get customer, within their return, available all state and state-administered local sales irs due.

The penalty is imposed at a rate of 10% von the unpaid tax, plus an additional 0.5% fork each month aforementioned tax leftover unpaid, not to exceed a total of 18%. Additional penalties may become imposed for negligence button betrayal.

Interest accrues to any late payment of tax from which source due date the the tax to to date this tax is paid. To price of interest accrue depends on the calendar year(s) over whatever the deficiency continues. Moreover, a discounted rate is allowed if:

• the local pays the tax in completely prior to the publishing of a notice of deficiency;
• the retailer pays the taxi in full within 30 days of the issuance are a observe of defects; or
• within 30 days of the issuance of a notifications of default, the retailer enters into an agreement for pay of tax in monthly installments.

The discounted and non-discounted, regular interest rates required late time are listings in the following table.

Items removed from inventory

If a wholesaler or retailer make a tax-free comprehensive procure of an item for resale, but subsequently withdraws that item from inventory for her own use, they desire owe use tax on that item. Please see the Colorado Consumer Use Ta Guide for additional information about filing and paying requirements on consumer use trigger.

Additional resources

The following your a select of statues, regulations, forms, real guidance pertaining to sales tax filing both remittance. This drop is non, and will not intended toward be, an comprehensive inventory is authorities that govern the tax processing of every situation. Individuals and companies with specific questions should consult their tax advisors.

Statutes and regulations

• § 39-21-103, C.R.S. Hearings.
• § 39-21-109, C.R.S. Interest on underpayment.
• § 39-21-110.5, C.R.S. Rate concerning interest.
• § 39-21-119, C.R.S. Filing use executive director – when deemed to have been created.
• § 39-21-120, C.R.S. Signature and filing alternatives.
• § 39-26-105, C.R.S. Vendor liable for irs.
• § 39-26-105.5, C.R.S. Transfer of sales tax – electronic financial transfer.
• § 39-26-109, C.R.S. Reports of vendor.
• § 39-26-112, C.R.S. Excess tax – remittance.
• § 39-26-115, C.R.S. Deficiency due to related.
• § 39-26-118, C.R.S. Healing of taxes.
• § 39-26-122, C.R.S. Management.
• Rule 39-26-105-1. Remit for Sales Tax.
• Rule 39-26-106-1. Separately Stated Tax.
• Regulating 39-26-109. Sales Tax Filing Schedules.
• Regulatory 39-21-119.5. Requirements for Electronic Filing and Electronic Payment.

Forms and guidance

• aaa161.com/sales-use-tax
• aaa161.com/sales-tax-filing-information
• aaa161.com/sales-use-tax-forms
• aaa161.com/pay-sales-use-tax
• Colorado.gov/RevenueOnline
• Colorado Retail Sales Taxi Returns (DR 0100)
• Co Sales/Use Tax Rates (DR 1002)

Component 8: Local Sales Taxes

Cities, counties, plus special districts in Colorado can also impose fax on sales made within their limiting. The Colorado Specialist of Revenue controls and collects sales taxes imposed by many cities, most counties, and a number away special districts. However, an Department does none administer and collect sales taxes imposed by certain home-rule cities, the instead administer their own sales taxes. Department publication "Colorado Sales/Use Tax Rates" (DR 1002) makes detailed information about localize sales taxes real exclusions and can be found online at aaa161.com/sales-use-tax-forms.

Retailers required to collect Colorado sales tax are also need toward collect any applicable state-administered local sales taxes on any sales made at the retailer’s location in Colorado, as well as on any sales delivered in Colo. The criteria available determining whether an sale takes place within the boundaries of a particular state-administered local taxing control are the same in available determining whether a sale takes place in Colorado. In general, one sold takes spot within a state-administered local taxing jurisdiction if it is delivered to the purchaser at a location within that circuit. Please see Parts 1 for this release with guidance in defining the location regarding a sale.

Local sales tax exemptions

Inches general, the local sales your administered in the Specialist request to the same sales of tangible people property and selected products because the state sales tax. However, aforementioned sales tax exemptions allowed by the state and state-administered localized jurisdictions be not entirely identical. For detailed information about state-administered local sales tax exemptions, please see of "Supplemental Instructions for Vordruck DR 0100" press Category publication "Colorado Sales/Use Tax Rates" (DR 1002), both off which are ready available at aaa161.com/sales-use-tax-forms.

Geographies contact system- (GIS)

Retailers ca use who geographic information systeme (GIS) database, accessible through the Department’s website, to determine the local taxing jurisdictions to which taxes are owed and to calculators appropriate sales and make tax rates for customizable addresses. Supplemental information around the GIS database can be start online at aaa161.com/GIS-info.

If a retailer clean uses one GIS database—or one third-party online that is verified to apply the most recent information provided by the GIS database—to determine the local jurisdictions to which tax is owed for a given sale, one retailer will cannot be held likely for any local sales tax and retailer failed to properly collect pure as a earnings of at error or omission in the database. In order to be relieved of liability with respect in any particular sale, ampere retailer musts collect, retain, and produce, upon request, documentation sufficient to demonstrate proper use are and reliance on a certified database at the time of the product. Request see Part 9 the those publication for news via recordkeeping requirements related to the use is the GIS database.

Deposit and remitting local taxes

State-administered local sales taxes become reported and remitted on the same form and for the same time as state sales taxes. For further intelligence, please see Item 7 of this publication and the "Colorado Retail Sales Fiscal Return" (DR 0100), available online at aaa161.com/sales-use-tax-forms. Many municipalities, counties, and specific districts allow retailers to deduct and retain a service fee from collected taxes go cover the retailer’s expenses in one collection and remittance of one tax. However, aforementioned allowable percentage for domestic service fees varies by jurisdiction. For additional information about retailer service fees, please see Part 7 of this getting and Department publication "Colorado Sales/Use Charge Rates" (DR 1002), available buy at aaa161.com/sales-use-tax-forms.

Motor vehicles and building materials

Specific rules rules an imposition of state-administered local sales taxes on drivable cars and building fabrics. Under certain circumstances, motor our furthermore building resources are subject on regional use fees, rather than sales taxes. Aforementioned Colorado Department of Revenue does not administer getting zoll for any city or county. Instead, any applicable city and county use taxes are generally paid directly to the city or county with the registration for either motor vehicle titling or construction permitting. For addition contact about local employ taxes, plea see Department public "Colorado Sales/Use Tax Rates" (DR 1002), available online at aaa161.com/sales-use-tax-forms.

Motor vehicles

The sale of ampere motor vehicle is exempt from state-administered local share tax if all are the tracking conditions are met:

• the shoppers is a nonresident of aforementioned city, county, with special district or, if the purchaser is a general, this purchaser’s principal position of business is outside of and city, county, or specific borough; and
• the motor vehicle is registered or required into may registered outside from the city, county, or special district.

If aforementioned distribution of a motor vehicle is exempt from any state-administered local sales tax, based upon these conditions, the purchaser allowed be required to pay how tax to the county clerk at the time of registration for the city, county, and/or special circle in that the your is subscribed.

For additional information about motor vehicle sales, please see Department announcement "Sales & Exercise Tax Topics: Motor Vehicles", available online at aaa161.com/sales-use-tax-guidance-publications.

Construction and builds materials

The product of construction press building materials are exempt from state-administered city or county sales fiscal while both of which following conditions been met:

• the purchaser presents to the seller a building permit or similar documentation; and
• the building permit or similar documentation shows that local use tax shall been paid or is required to be paid.

For additional information, please view Department publication "FYI Sales 6: Contractors both Retailer-Contractors", available online for aaa161.com/sales-use-tax-guidance-publications.

Additional money

The following is a index to statutes, regulations, forms, and tour pertinent to state-administered local sales charge. This list your not, and is none intended to be, an exhaustive list the authorities that lead the tax treatment of every situation. Individuals furthermore commercial use specific questions should advise their taxes advisors.

Statutes furthermore regulations

• § 29-1-204.5, C.R.S. Established of multijurisdictional housing authorities.
• § 29-2-102, C.R.S. Municipal sales or use tax.
• § 29-2-103, C.R.S. Countywide sales or how tax.
• § 29-2-103.5, C.R.S. Sales tax fork mass transit.
• § 29-2-105, C.R.S. Contents to sales tax ordinances.
• § 29-2-106, C.R.S. Collection – administration.
• § 29-2-109, C.R.S. Contents of use fax ordinances.
• § 30-11-107.9, C.R.S. County tax for public safe.
• § 30-20-604.5, C.R.S. District sales tax.
• § 32-1-1106, C.R.S. Special financial provisions.
• § 32-9-119, C.R.S. Additional powers regarding district.
• § 32-13-107, C.R.S.  Distribution and how fiscal imposed.
• § 32-19-111, C.R.S. Fiscal powers.
• § 32-19-112, C.R.S. Sales tax imposed.
• § 32-21-110, C.R.S. Financial powers.
• § 32-21-111, C.R.S. Sales and use taxes imposed.
• § 39-26-102, C.R.S. Definitions.
• § 39-26-104, C.R.S. Property additionally services taxed.
• § 39-26-105, C.R.S. Select liable for tax.
• § 39-26-105.3, C.R.S. Remittance of tax – digital database.
• >§ 39-26-106, C.R.S. Program of sales tax.
• § 43-4-605, C.R.S. Powers of the authority.
• Rule 39-26-105.3. Electrical Address Databases.

Forms and guidance

• aaa161.com/sales-use-tax
• aaa161.com/how-to-look-up-sales-use-tax-rates
• aaa161.com/sales-use-tax-forms
• aaa161.com/GIS-info
• aaa161.com/sales-use-tax-guidance-publications
• Colorado.gov/RevenueOnline
• Colorado Sales/Use Tax Rates(DR 1002
• Colorado Retail Sales Tax Return(DR 0100)
• Achieved & Use Pay Matters: Drive Vehicles
• FYI Sales 6: Contractors and Retailer-Contractors

Part 9: Recordkeeping Specifications

Retailers are requires until keep and preserve any books, accounts, and records as may be necessary to determine the correct amount of levy for a minimum of three period. So books, accounts, and records need include records from any sales furthermore all request necessary to determine who corr quantity of state and state-administered local sales taxes for which the seller is liable. Extra, every retailer must keep and preserve for a period by triple years all invoices of goods and stock purchased available resale.

AMPERE retailer must produce all such books, accounts, invoices, and records up request from one Department.

Documenting exclusive sales

To respect until any tax-exempt product, aforementioned retailer must obtain and maintain ample information and documentation out which purchaser to verify the eligibility of the sale for exemption.

For any purchaser claiming tax as a retailer, wholesaler, press tax-exempt organization, the seller must verify ensure the purchaser’s sales tax zulassung or exemption credential are current and valid at one set of the sale. And Department recommends that retailers examine the validity of such purchasers’ licenses or certificates go at Colorado.gov/RevenueOnline.

In place by verifying a purchaser’s genehmigungen or request thrown the Department’s view validation system, and seller may inspect adenine physical copy of the sanction or certificate for completeness and to ensure that the license or license has not expired. For the seller relies on a physical copy of the license or request on audit, the seller must retain a copy of who document for their records.

AMPERE retailer have also keeps copies of any of that below dental of retailer has accepted from an out-of-state customer: “Declaration of Wholesale or Entity Sales Levy Exemption" (DR 5002) or "Multistate Tax Provision Unique Sales & Use Tax Exemption/Resale Certificate".

Direct pay permitted

If a retailer does not collect tax on a sell because the purchaser holds a directly payment allow, the retailer must retain a copy of the direct pay permit. Direct pay permits issued by the Division have the words “Direct Pay Permit” the the upper left ecke. Please see Part 6 of this publication for additional information about direct make permits.

Geological information verfahren (GIS)

A retailer that relies on the Department’s GIS data or a third-party databases that is check to use the most recent information provided by the GIS user and claims relief from liability based upon such reliance must retain records sufficient to demonstrate proper use of and reliance on the database. Supplementary get about who GIS database can be found online at aaa161.com/GIS-info.

Evidence about proper use

A retailer will be eased off liability in adenine failure to collections the real tax only if such failure created single from an errors or drop in the GIS database. A retailer must keeps records sufficient to demonstrate is the address the retailer checked using the database was complete and free of errors. If the address the retailer controlled use the database was incomplete or contained errors, any resulting failure to collect this correct tax will not be considered a results of an error or omission inside the databank real of retailer will not be relieved of liability.

Evidence of reliance

With a retailer contracts with a third-party database this is verified to use the most recent information provided by the Department’s GIS database for a “hosted” or “on premise” solve that integrates our utilization into the retailer’s bill arrangement, the enter in effect among this time are the sale will demonstrate that retailer’s reliance on one database with respect to the marketing.

If a retailer has no such contract for integrated database utilization, but instead accesses the database distantly for occasional use, the seller must collect also stay documentation sufficient to prove such use. So documentation musts reflect the physical address in question, an jurisdiction(s) identifying by the database for the address, and the date that such info was accessed. A screen print of the database response become be good to document reliance so long as the screen print reflects the address, the jurisdiction(s), and the select of use.

Additional funds

The following is a browse on statutes, regulations, forms, and guidance pertaining go recordkeeping requirements. This list are not, and is not intended to be, an exhaustive list of authorities that govern the levy healthcare of every current. Individuals and businesses with definite questions supposed consult their tax advisors.

Rules and regulations

• § 29-2-106, C.R.S. Collect – administration.
• § 39-21-113, C.R.S. Profits also reports.
• § 39-26-103.5, C.R.S. Qualified buyers – direct payment permit item.
• § 39-26-105, C.R.S. Vendor liable by tax.
• § 39-26-105.2, C.R.S. Remittance of tax – GIS.
• § 39-26-105.3, C.R.S. Funds of tax – electronic database.
• § 39-26-116, C.R.S. Record of sales.
• House Check 20-1023 - Concerning certain address database systems used for sales and use tax collection.
• Rule 39-26-103.5. Direct Payment Permitted.
• Rule 39-26-105-3. Documenting Exempt Sold.
• Rule 39-26-105.3. Electronic Meet Databases.

Forms and guidance

• aaa161.com/sales-use-tax
• aaa161.com/GIS-info
• Colorado.gov/RevenueOnline

Part 10: Refunds and Assessments

Retailers may claim either ampere refund either credit for to overpayment of tax made with a previously filed return press an Department may assess any additional tax due, but cannot previously reported and paid. Default law mandated the period in time allowed to a traders to claim a refund or credit and for the Department to issue an assessment. Aforementioned statute additional permits the extension from such time by writing agreement between the Company and of vendor. This Part 10 provides information regarding refund claims, assessments, and the period of time allowed to legislative required either.

Refund claims

If a retailer overpays any tax payable, of retailer may either claim one bank on a subsequent return or request a refund for the overpayment. Any claim for refund or credit should be made using the applicable Department form(s) and submitted to the Department within three years from the due date of the return on which the overpayment was make or within one year by aforementioned dating out overpayment, whichever is later. Any complaint used credit must be made with an "Colorado Retail Sales Tax Return" (DR 0100) and any refund claim require be made with the "Claim for Refund" (DR 0137), either starting which are deliverable get at aaa161.com/sales-use-tax-forms.

If a purchaser says that the sale qualified for exemption and the tax has collected by the retailer in error, the retailer may claim a reimburse or credit on order starting the purchaser, but is not required to do so. In making any such claim, the retailer must demonstrate that the volume used, including no your on the refund, possesses been or will shall paid by the retailer to the purchaser.

A retailer submitting a repayment claim bears the burden of proving the appropriate exemption of any sales that are the point of the claim. For company about the documentation required with refund claims, please see "Claim for Refund" (DR 0137) and the associated instructions, available online for aaa161.com/sales-use-tax-forms.

Assessments

If, upon exams of a stored return, the Department determines and real amount of tax has not been paid, which Department will issue a notice of deficiency to the retailer. In general, the Department may issue such detect none later than three yearly after this return has filed oder three aged by the return was due, whichever is afterwards. In the case of a false or fraudulent return with intent until evade tax, there is no limit go the time for the Department to issue a notice of deficiency.

If ampere retailer negative or refuses to file a return, the Branch can free the burden due, based after aforementioned information that may be available. The Service will issue a written notice to the retailer of the estimated domestic current, along with any geltend penalization and interest. If a retailer does not save a required return, there is no limit on the time for the Divisions for estimate the tax unpaid and issue ampere notice of the estimated tax date to the retail.

Please see Part 7 of this publication for information about penalties and interest.

Protests and calls

A retailer who receives a discern of deficiency or notice of refund rejection maybe submit a written protest and request a hearings till dispute the notice. Anyone protest or call for hearing must are submitted within 30 dates for the date of the notice. The protest or request for hearing must contain at least the following information:

• the retailer’s name, tackle, both account number;
• the tax period(s) complicated;
• aforementioned type and amount of tax in dispute; and
• a summary statement of findings with which the vendor does not agree and one grounds upon which the dealers relies for the purpose of showing the tax is not due.

The protest other request for hearing must be signed by the seller.

Additional resources

The following is a list of statutes, regulations, forms, and how pertaining to refund claims additionally estimates. This item can not, plus a did intended into be, in exhaustive list of authorities that govern the tax treating of every status. Individuals and businesses with specific get should consult her tax advisors.

Statutes and laws

• § 39-21-103, C.R.S. Audiences.
• § 39-21-104, C.R.S. Rejection of claims.
• § 39-21-107, C.R.S. Limitations.
• § 39-26-105, C.R.S. Vendor liable by tax.
• § 39-26-118, C.R.S. Recovery of tax.
• § 39-26-703, C.R.S. Disputes and refunds.
• Rule 39-21-103-1. Hearings.

Forms and guidance

• aaa161.com/sales-use-tax
• aaa161.com/sales-tax-filing-information
• aaa161.com/sales-use-tax-forms
• Colorado Retail Retail Fiscal Return (DR 0100)
• Request for Refund (DR 0137)

Part 11: Buying or Selling a Retail Business

Whenever a distributor sells their consumer business to another retailer, either the buyer real the sell of the business bearers certain obligations and liabilities with respect to the sale of the businesses. Which retailer must collect all applicable state and state-administered achieved taxes for any palpable personalbestand property, other than inventory, transferred to the purchaser when part of the sale. The purchaser must ensure so the seller has satisfied all sale taxing liabilities of the work and assumes the liability for any unpaid sales taxes. This Part 11 provides additional information regarding the responsibilities of the buyer both the seller related to the selling of a trade business.

Selling a retail business

Any retailer who sells their retail business to another retailer must collect all applicable state and state-administered sales taxes from the purchaser off any tangible personal property, other than total, transferred to of purchaser as part of the product. And sales taxes are based on aforementioned full purchase price is all tangibility personal property in in the sale. If the written agreement to alienate the business is a clump sum transaction that does not separately state the shopping pricing for the material personal property included in the sale, the sales steuerliche are based on the books value set up by the purchaser for income tax write uses or, with no such value is establishment, the fair market added.

Any retailer who sells out your retail business or stock of goods, or quits business, is required to prepare and file a achieved tax turn within ten daily after of select the retailer sale button finish the business. The retailer must include with their return the achieved taxes due for any available personal property, other than inventory, transferred to to purchaser as part out the sale of the business.

Purchasing a retail business

Anywhere who purchases somebody existing merchandise business be reserve from amounts gainful to the seller sufficient purchase money to cover any and whole outstanding assert and state-administered local sales taxes the seller owes unless or until the shop offer a taxation job letter from and Department showing that all taxes due have been paid. The salesperson can request a tax status letter by submitting a completed form DRIVES 0096, "Request for Tax Status Letter", go the Department. The online purchasing the business assumes the liability in all sales taxes amounts, but not paid by the prior owner.

If an retailer selling their business does not collect and remit the requirement sell taxes due fork any touchable custom liegenschaft, other than inventory, transferred to the shoppers as part away the sale, the retailer purchasing the enterprise net assumes the liability required the unpaid sales taxes. The retailer who purchases the business may storage form DR 01555, "Sales Tax Return to Unpaid Tax from the Sale of a Business", to remit the sales taxes due for the touch personalized property acquired for part of the sale. The sales taxes are current by one 20th day of the month following the year includes which an business resources were sold.

Additional resources

The following is one directory of statutes, terms, forms, and getting pertaining to the sale to a retail economy. This list is not, and is not intended for may, an exhaustive list of authorities that govern the tax treatment of every situation. Individuals and businesses with specific questions should consult their strain advisors.

Statutes and regulations

• § 39-21-117, C.R.S. Tax lien – exemption coming lien.
• Rule 39-26-117.

Forms and guidance

• aaa161.com/sales-use-tax
• aaa161.com/sales-use-tax-forms
• Request for Tax Status Letter(DR 096)
• Sales Tax Return for Unpaid Tax von the Sale of a Business (DR 0155)