Sales And Use Tax General Information And Reference Guide (Page 6 of 12) in pdf

Colorado Sales and Use Tax 6

Tax Information:

Prepaid Wireless Service Fee

Mass Transit District Tax

Retailers of prepaid wireless service are required to collect a fee of 1.4%

A sales tax in Eagle, Pitkin and Summit Counties is imposed on all

of the purchase price of the service. Prepaid wireless service includes

transactions that are subject to state sales tax. The tax is remitted when

you ﬁle your return through your Revenue Online account or on the

retail purchase of prepaid service, purchases made on the Internet and

recharge minutes.

“Colorado Retail Sales Tax Return”(DR 0100).

The proceeds of this fee are distributed to local Colorado E911 authorities.

Multi-Jurisdiction Housing Authority (MHA)

The fee is remitted on the form “Prepaid Wireless Fee” (DR 0526) at

Summit County has a multi-jurisdictional housing authority sales tax.

the same time a retailer or wholesaler remits their sales tax return. For

Public Safety Improvements (PSI)

further information, see publication FYI General 21, “E911 Surcharge.”

Montrose County has a Public Safety Improvements sales tax.

New Tire Recycling Development Fee

Rural Transportation Authority (RTA)

Retailers of new tires are required to collect a fee of $1.50 on every new

If your business is located in Eagle, El Paso, Garﬁeld, Gunnison, Pitkin

motor vehicle tire sold by a tire retailer to a consumer. The fee applies

to any passenger vehicle including motorcycle tires but not to tires of

Counties or in the City of Sterling, a Rural Transportation Authority

(RTA) may be imposed. The RTA sales tax is reported when you ﬁle

trucks that weigh more than 15,000 pounds that have been recapped

or reprocessed.

your return through your Revenue Online account or on the “Colorado

The proceeds of this fee go towards recycling programs for tires. This

Retail Sales Tax Return” (DR 0100). The RTA consumer use tax is

fee is remitted on the “New Tire Fee Return” (DR 1772) at the same

reported on “RTA Consumer Use Tax Return” (DR 0251). The RTA

retailer’s use tax is reported when you ﬁle your return through Revenue

time a retailer remits their sales tax return. For further information, see

Online or when you ﬁle the “Retailer’s Use Tax Return” (DR 0173).

publication FYI General 13 “Waste Tire Recycling Development New

Tire Fee.”

The areas that impose the RTA may be found in publication “Colorado

Sales/Use Tax Rates,” (DR 1002).

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Metropolitan District Tax (MDT)

When a purchaser, who has no intent of reselling, takes ﬁrst possession

Aspen Park Metropolitan District, located in Jefferson County, and

of sold items (except motor vehicles) at your business location, you

Bachelor Gulch, located in Eagle County, levy a sales tax. See publication

must collect all applicable sales taxes for the jurisdictions in which your

“Colorado Sales/Use Tax Rates” (DR 1002) for additional information.

business is located, regardless of where the purchaser resides (even

out-of-state) or intends on using the item.

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When conditions of the sale dictate that an item be delivered by regular

Home-rule cities that collect their own local sales/use taxes may have

mail, parcel post, common carrier or your business’s vehicle, the

different guidelines and must be contacted directly. These cities are

destination is regarded as the point of sale, and the sales taxes of only

listed in “Colorado Sales/Use Tax Rates” (DR 1002), along with their

the jurisdictions which both seller and buyer share in common would

contact information.

be collected by the seller unless a “nexus” has been established.

For example, if the delivery site is within the same city in which your

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business is located, you would collect all appropriate taxes, such as city,

Counties may impose a tax on lodging services including hotels,

county, RTD/CD and state. If you deliver outside the city, county and

motels, condominiums, and camping spaces. Tax is remitted quarterly

any special taxing districts in which your business is located, the only

on “County Lodging Tax Return” (DR 1485). County Lodging Tax

jurisdiction you would share would be the state; therefore, the state

applies to gross room rental income, no reductions for rentals that are

sales tax would be collected. However, use taxes are due for deliveries

exempt from state sales tax applies.

made into special districts that impose a use tax. The use tax should be

reported on form DR 0173, Retailers Use Tax Return. If your company

has a business location (sales ofﬁce, warehouse, store, etc.) or has

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otherwise established a “nexus” within the destination city, you would

The town of Vail, the cities of Steamboat Springs and Estes Park, and

collect all sales taxes applicable for that location (detailed information

Alamosa and Gunnison County levy a Local Marketing District tax on

is provided in publication FYI Sales 62, “Guidelines for Determining

hotel and motel rooms. The tax is remitted quarterly to the Department

When to Collect State-Collected Local Sales Tax”). Deliveries shipped

of Revenue on the”Local Marketing District Tax Return” (DR 1490).

outside Colorado are not subject to Colorado sales taxes.

iscellaneous

ees

If the purchased goods are turned over to an independent contractor/

subcontractor for delivery to the customer it is the store location, not

Motor Vehicle Daily Rental Fee

the delivery destination, that is considered the point of sale. An example

This fee is applicable to motor vehicle rentals by companies whose

of this would be a carpet purchase that the retailer turns over to an

primary business is renting motor vehicles for less than 45 days. For

independent installer for delivery and installation.

such rentals, the fee applies for each day each vehicle is rented. The fee

While no sales taxes are collected for jurisdictions the buyer and seller

is paid by the customer and should be separately stated on the rental

do not share in common, special district use tax due by the seller and

contract as the Colorado Road Safety Program Fee. This $2 fee should

local use tax may be owed by the purchaser when those deliveries occur

not be included in the amounts subject to state and local sales tax. If a

in special district areas and home-rule city jurisdictions. Vendors must

vehicle is separately rented to more than one customer in a given day,

maintain adequate records to prove where deliveries took place, and that

the $2 fee should be charged to each customer. See publication FYI

deliveries occurred prior to any use by the buyers of items purchased.

General 19, “ Motor Vehicle Daily Rental Fee” for more information.

Delivery charges could be taxable. See the Glossary on pages 10 and 11

of this booklet. See publication FYI Sales 62 “Guidelines for Determining

When to Collect State-Collected Local Sales Tax” and publication

Sales And Use Tax General Information And Reference Guide Page 6

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