Form Dr 0099 - Colorado Sales And Use Tax Guide (Page 9 of 12) in pdf

Retailer’s Use Tax Payments

Independent Distributors of Housewares, Cosmetics

and Other Products

Payments can be made electronically through Revenue

Online by eCheck, credit card or by Electronic Funds Transfer

These companies may elect and agree to remit the sales

(EFT). If you cannot pay electronically, you can mail your

tax to the Department of Revenue. In this case, individual

check with your return.

distributors are not required to have sales tax licenses.

However, you are still required to collect sales tax on items

•

There is a fee for online tax payments by eCheck or

you sell. Check with your company to determine whether or

credit card.

not arrangements have been made to remit the sales tax to

•

There is no fee to pay by EFT; however, you must

the Colorado Department of Revenue. If the company has

be registered. You can sign up for EFT through your

not elected to collect and remit sales taxes, each individual

Revenue Online account or by completing and sending

distributor must obtain a sales tax license.

in the form DR 5785: Authorization for Electronic Funds

Rental Businesses

Transfer (EFT) Payments.

Equipment – If you have a leasing company and collect

For more information on EFT, refer to the form DR 5782:

sales tax on lease/rental agreements, you must secure a

Colorado

Department

Revenue

Electronic

Funds

leasing permit in addition to your sales tax license. Complete

Transferred (EFT) Program for Tax Payments.

and return the form DR 0440: Permit to Collect Sales Tax on

Information For Particular Types of

the Rental or Lease Basis. Leasing businesses with multiple

locations must complete one form DR 0440 for each location.

Businesses

There is no fee for the leasing permit.

Mobile Businesses

This requirement is applicable to all businesses that rent or

lease tangible personal property to customers on a short or

Businesses that sell goods via a mobile vehicle must obtain

long term basis. If the lease on a rental is for a period of less

a sales tax license for the business. These businesses will

than three years and the form DR 0440 is not filed, you must

pay the $16 license fee and $50 deposit. Appropriate state

pay sales tax up front on all rental equipment. Sales tax must

and local sales taxes for the areas where sales are made

not be shown on late charges or invoices during the term of a

must be collected and remitted to the department. For local

lease period that is less than three years. Examples include,

tax rates, refer to form DR 1002. A separate return must be

but are not limited to, motor vehicles, construction equipment,

filed for each jurisdiction where sales are made.

formal wear, videos and digital equipment, computers and

Small Home Businesses

peripherals, lawn and garden equipment.

An individual who makes retail sales from a private residence

Motor Vehicles – If your business rents motor vehicles

that total $1,000 or less in a calendar year is not required to

for less than 30 days; you must collect and remit $2.00 for

have a sales tax license. However, taxes on these sales must

each rental per day. Motor vehicle means vehicles designed

be collected and paid by April 15 of the following year on

for travel on public highways and used to transport people

the form DR 0100A: Retail Sales Tax Return for Occasional

or property. This includes motorcycles, low speed electric

Sales. For more information, refer to FYI Sales 8: Sales Tax

vehicles, cars, trucks, trailers, semitrailers and recreational

Requirements for Small Home Businesses.

vehicles (RVs), but does not include low power scooters,

Vendor’s at Farmers Markets

vehicles that operate only upon rail or tracks laid in place

on the ground or that travels through the air or that derives

People engaged exclusively in the business of selling

its motive power from overhead electric lines. Rentals made

commodities exempt from state sales tax (such as vegetables,

to the federal government for official use are not subject to

fruit or rice for home consumption) are not required to get a

this fee. Collections of this fee are reported and paid by the

Colorado sales tax license.

20th of the month following the reporting period on the form

If the farmer or retailer at a farmer’s market sells prepared

DR 1777: Vehicle Daily Rental Fee Return.

(ready-to-eat) food or other tangible property, that business

Note: This fee should be stated separately on the rental

should have its own sales tax license.

contract as the Colorado Road Safety Program Fee.

If the location of the farmer’s market is in a jurisdiction

Seasonal Businesses

that taxes food for home consumption, farmers or retailers

should collect and pay the local tax either on their own sales

If your business is seasonal and you make retail sales during

tax license account or through the account of the market

only part of each year, you must obtain a standard sales tax

organizer if the farmer/retailer is not required to have a sales

license. Examples of seasonal businesses are ski rental

tax license.

shops, fireworks and Christmas tree stands, the Renaissance

Festival and other businesses which are in operation during

If the farmer’s market organizer is only collecting applicable

only certain months of the year.

local sales tax (because state sales tax is not required), the

organizer can request to not pay the $50 sales tax deposit

When you apply for your license, you’ll indicate which months

normally required for a standard sales tax license.

of the year your retail business will be active. The department

will send you returns only for those months during which

Note: This information pertains only to state-collected tax

you do business. The return is due on the 20th of the month

jurisdictions. Vendors should contact home-rule cities and

following the reporting month. If your seasonal business is

counties directly for their tax registration, collection and filing

conducted in several locations, you must have a separate

requirements.

license for each location.

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

Page 9

Form Dr 0099 - Colorado Sales And Use Tax Guide Page 9

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