SALES TAX & USE TAX
Sales
and Use Tax Services
Many businesses who sell goods are required to collect sales tax for state and local governments. The tax rates vary largely from one municipality to another and can change at the beginning or in the middle of the year.
In some cases, the amount of taxable sales must be separated from non-taxable sales. We can provide many services related to sales tax collection including:
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Determination of what is or is not taxable and who must collect sales tax
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Analysis of sales receipts for amount of taxable sales
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Preparation of all state, county and local sales tax returns.
What is Use Tax?
Over time, municipalities, as well as states, realized that since they could not require out-of-area vendors to apply for sales tax licenses, they were unable to collect tax on certain sales. The "Use Tax" solves this problem. Use Tax laws generally place the burden of tax paying on the buyer. If goods or services are purchased that are taxable within the jurisdiction of a business, that business is required by law to pay the combined sales tax rate for those taxable items. If the vendor has failed to collect the tax, the business is required to file a use tax return (which is commonly contained within the sales tax return) for the state, county and city in order to remit the tax. Ignorance to these rules can result in the taxing authorities assessing the tax after-the-fact, including failure to file penalties and interest on the balance. Many cities require businesses to file a return even if no tax is due. Business owners would be well advised to research the regulations or contact a tax advisor.
Sales Tax Rate/Codes information:
Colorado Department of Revenue Publication DRP1002 (PDF)
This publication summarizes Sales and Use Tax Rates for most cities and counties in the state. It is a short, but comprehensive, guide to sales and use tax in the state.
Colorado Sales and Use Tax Return DR0100 (PDF)
Colorado Municipalities Tax Rates
State, County and City Webpage Links