Sales And Use Tax General Information And Reference Guide (Page 11 of 12) in pdf

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Colorado Sales and Use Tax 11

Use Tax (Consumer) — a complement to state and RTD/CD and RTA

obtaining separate licenses, if each event has a minimum of three vendors.

sales tax, it is imposed on the storage, use or consumption in Colorado

If such events occur more than three times in the same location in any

of tangible personal property upon which sales tax has not been paid;

calendar year, a Standard Sales Tax License must be obtained rather

the consumers use tax rate is the same as the state sales tax rate and

than a Multiple Events Sales Tax License.

RTD/CD tax where applicable. Businesses can ﬁle consumer use tax

Purchase Price — the full charge to acquire the item, including labor

online at www/Colorado.gov/RevenueOnline The online system has

and overhead, exclusive of any sales tax. In the case of retail sales

built-in tax rates for the jurisdictions applicable to the business address.

involving the exchange of tangible personal property, the purchase

The tax system is easy to use, calculates the amount of tax owed based

price would exclude the fair market value of the property exchanged if

on the purchase total, and will help you avoid ﬁling errors. Consumers

such exchanged property is to be subsequently sold in the usual course

use tax can also be paid with a “Consumer Use Tax Return” (DR 0252)

of the retailer’s business. Example: When a new automobile purchase

or “RTA Consumer Use Tax Return” (DR 0251).

transaction includes the trade-in of another automobile, the fair market

value of the trade-in may be subtracted from the purchase price of the

Use Tax (Local) — consumer use tax that may be imposed by state-

new car before sales tax on the new car is calculated if the car traded

collected municipalities and counties on motor vehicles, building and

in is to be resold by a dealer holding a sales tax license.

construction materials; local use taxes are administered and collected

by the local taxing jurisdictions. Contact them directly for information

Retail Sale — any sale of tangible personal property made within the

about rates and compliance requirements.

state that is not a wholesale sale.

Use Tax - Retailer’s — an equivalent to the state sales tax collected

Retailer — a person doing retail business, known to the trade and

by out-of-state vendors who do not maintain business locations in this

public as such, and selling to the user or consumer, and not for resale.

state but who are otherwise “doing business in this state” as deﬁned by

Revenue Online -- a Web site where taxpayers can conveniently

Colorado law. Such vendors should obtain a Colorado Retailer’s Use

and securely conduct business with the Department of Revenue on

Tax License by completing a tax account application (CR 0100) and

their computers, laptops, smartphones and tablets. The information

should collect state use tax as well as RTD/CD, and RTA taxes where

available in Revenue Online does not represent the entirety of your

applicable. See the form Colorado Sales/Use Tax Rates (DR 1002).

information with the Department of Revenue. But the service makes

The Retailer’s Use Tax Return (DR 0173) can be ﬁled electronically

it possible for you to manage your accounts without the need to

on Revenue Online. Signing up for access will allow your to manage

contact the department by phone, email or in person. You may also

your tax account and ﬁle and pay online. There must be a separate

ﬁle returns and pay taxes through your Revenue Online account.

return with the correct branch number on each RTA Tax remittance,

either for Roaring Fork RTA, Pikes Peak RTA, Baptist Road RTA, or

Sale — any transaction whereby a person in exchange for any

South Platte Valley RTA.

consideration (such as money or its equivalent, property, the rendering

Use Tax — Retailer’s — Special Districts — an equivalent to the

of a service or promise of any of these things) transfers or agrees to

special district sales tax collected by out-of-district vendors who do not

transfer tangible personal property or performs a taxable service.

maintain business locations in the district but who are otherwise “doing

business in” the district as deﬁned by §39-26-102(3) C.R.S.

Service Fee — Also known as the vendor’s fee. Colorado allows sales

tax licensees to keep a percentage of the state sales tax collected as

Vendor — same as “retailer.”

a service fee for collecting the monies. The fee may be kept by the

licensee only if the tax return is ﬁled on time. Many local jurisdictions

Wholesale Sale — a sale by wholesalers to retail merchants, jobbers,

grant service or vendor’s fees as well. See the publication “Colorado

dealers or other wholesalers for resale, that is not subject to sales tax;

Sales/Use Tax Rates” (DR 1002) for local vendor’s fee rates. The correct

it does not include a sale by wholesalers to users or consumers not for

vendor’s fee will automatically be deducted for a timely ﬁled and paid

resale. These transactions are retail sales and subject to sales tax.

return on Revenue Online.

Wholesaler — a person doing a regularly organized wholesale or jobbing

Single Event — any sales event conducted away from an established

business, known to the trade as such and selling to retail merchants,

place of regular retail business. The event occurs only once. Individual

jobbers, dealers or other wholesalers who intend to resell the merchandise.

vendors may be relieved of obtaining Single Event Sales Tax Licenses

if there are a minimum of three vendors and the license is obtained by

Tax Workshops and Education

the event organizer. It is the license holder who remits the sales taxes.

The department offers live and online workshops on Colorado sales tax

Tangible Personal Property — all goods, wares, merchandise, products

laws, Colorado sales tax returns, Revenue Online, and use tax laws. Most

and commodities, and all tangible or corporeal things and substances

live workshops are held in the Denver Metro area, Colorado Springs, Fort

which are dealt in, capable of being possessed and exchanged; the term

Collins, Pueblo, and the Western Slope. CPE credit is available, unless

does not include real property, such as land and buildings nor does it

include contracts, deeds, mortgages, stocks, bonds, certiﬁcates of deposit

otherwise stated. Due to limited seating, reservations are required for

all live workshops. Visit the main Workshops and Education Web page

or membership and other items having no intrinsic value.

for details on topics, formats, locations,

and information on how to make a reservation.

Sales And Use Tax General Information And Reference Guide Page 11

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