Form Dr 0099 - Colorado Sales And Use Tax Guide (Page 10 of 12) in pdf

Charitable Organizations

Tax Return. A separate aviation return reporting form is sent

to taxpayers to facilitate such reporting.

Charitable organizations which hold IRS section 501(c)

(3) qualification letters and have a Colorado exemption

The aeronautics division of the Colorado Department

certificate may be exempt from collecting sales tax during

of Transportation distributes the funds to Colorado FAA

fund raising events. If the charitable organization conducts

designated public use airports.

sales for a total of 12 days or less during a calendar year

If a vendor sells aviation jet fuel in Colorado, it must contact

and the net proceeds from all these events do not exceed

the department to be set up to receive reporting forms.

$25,000 in that calendar year, the sales are not subject to

For more information, refer to FYI Sales 57: Sales and Use

sales tax. Net proceeds are the total gross events receipt(s)

Tax Applicable to Gasoline and Special Fuels.

less expenses attributable to the event(s).

Lodging Businesses

However, if sales are conducted more than 12 days in a

calendar year, all sales are subject to state, RTD, CD, RTA

Lodging owners or their management companies who rent

and state administered local taxes. For example, if the

rooms and accommodations for less than 30 days must

charitable organization chooses to conduct sales on a 13th

collect and remit sales tax. This includes lodging services,

day during the calendar year, the entire amount of gross

such as hotels, motels, condominiums, space rentals,

sales from all 13 days is subject to sales tax. If, however,

camping facilities and services, auto camps and trailer parks.

a charitable organization makes more than $25,000 in net

County Lodging Tax (CLD)

proceeds during a calendar year, it may make the sales that

The county lodging tax is a tax levied only in certain counties

generate the first $25,000 in net proceeds without registering

within Colorado and is applied specifically to lodging services,

with the department or collecting sales tax. As soon as the

such as hotels, motels, space rentals, condominiums,

organization reaches $25,000 in net proceeds, it must obtain

camping facilities and services, auto camps and trailer parks.

a sales tax license from the department and begin collecting

Lodging owners or their management companies are liable

sales tax.

for the county lodging tax on all receipts from lodging when

Vending Machine Operators

the stay was less than 30 consecutive days.

Owners, operators, lessors and lessees of vending machines

County lodging tax rates vary depending upon the county

who have control of the receipts must obtain a Colorado sales

where this tax is applicable. Refer to the form DR 1002:

tax license. At the time you obtain your sales tax license, you

Colorado Sales/Use Tax Rates.

must also purchase an identification decal or sticker for each

County lodging tax is remitted quarterly to the department on

machine. Each decal costs 10 cents. To obtain the stickers,

the form DR 1485: County Lodging Tax Return.

complete the form DR 0235: Request for Vending Machine

Decals. The sticker allows department agents to identify the

Local Marketing District Tax (LMD)

machine and its owner. Machines without stickers are subject

A local marketing district tax is a tax on lodging services

to confiscation by the department. For more information,

leased or rented for less than 30 days. This includes hotels,

refer to FYI Sales 59: Vending Machines.

motels, condominiums and camping spaces, and in some

areas houses, guest ranches and mobile homes. Lodging

Contractors Improving Real Property

owners or their management companies are liable for the

Contractors

who

build

and

construct

real

property

local marketing district tax on all receipts from lodging when

improvement and who bid work under lump sum contracts

the stay was less than 30 consecutive days.

are considered to be the end users and consumers of

Local marketing tax rates vary depending upon the

materials used during the contract work and must pay sales

county/city where this tax is applicable. Refer to the Form

tax to their vendors on all purchases.

DR 1002: Colorado Sales/Use Tax Rates for rates. Local

Contractors and subcontractors performing only lump-sum

marketing tax is remitted on the form DR 1490: Local

contracts do not need a sales tax license. However, they

Marketing District Tax Return with the same filing frequency

must pay all applicable Colorado sales and use taxes on

and due date as the form DR 0100: Colorado Retail Sales

all purchases of building supplies, construction materials

Tax Return.

and all other tangible personal property. The only non-

For more information, refer to FYI Sales 11: Sales Taxes

taxable purchases of building materials contractors and

Due on Unit Rentals of Hotels, Motels, Bed-and-Breakfasts,

subcontractors may make are those for construction work for

Condominiums and Time Shares.

tax-exempt organizations.

Record-Keeping

Retailer – Contractors are contractors who are also retail

merchants of building supplies or construction materials.

You must keep records of all of your business transactions to

Retailer-contractors must open and maintain Colorado sales

enable both you and the department to determine the correct

tax accounts.

amount of sales and use taxes for which you are liable.

For more information, refer to FYI Sales 6: Contractors and

These records must include:

Retailer Contractors- Definitions and Sales Tax Requirements

•

Complete, accurate beginning and ending inventories

and the publication Components of Contractor Compliance.

•

Purchase receipts

Aviation Fuel Vendors

•

Sales receipts

Vendors who sell aviation jet fuel at Colorado airports are

•

Canceled checks/bank statements

required to collect state sales, RTD and local taxes, report

gallons sold by location and pay such sales separately from

•

Invoices

other retail sales reported on the form DR 0100: Retail Sales

Colorado Sales and Use Tax Guide: Colorado.gov/Tax

Page 10

Form Dr 0099 - Colorado Sales And Use Tax Guide Page 10

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