Use tax is imposed on the storage, use or consumption in Colorado of tangible personal property upon which Colorado sales tax has not been paid. For example, if you purchase a piece of machinery for your business in another state, consumer use tax must be paid in Colorado. The amount of tax is based upon the primary location where an item is used and the purchase price or fair market value. The state use tax rate is 2.9 percent, the RTD/SCFD rates total 1.1 percent, and the RTA district taxes vary from one location to another. These taxes are paid to the Department of Revenue by filing a “Consumer Use Tax Return,” Form DR 0252. If you use items taken from your sales inventory, you may report the cost and tax online 10 of your sales tax return. Using either method, county and city use taxes may also be due. If the seller collects the tax, it’s sales tax. If the seller does not collect the appropriate tax, the consumer (user) must pay use tax. File and pay at www.taxcolorado.com
Colorado Business Development Foundation
info@coloradobdf.org
www.coloradobdf.org
Small Business Navigator Hotline: 303-592-5920
© 2022 Colorado Business Development Foundation. All rights reserved.
All information within this resource book and website is for informational purposes only and is not intended to be legal, tax, business or other professional advice. It is current to the best of our knowledge as of the date of publication. You should contact an appropriate professional to discuss any issue particular to you or your business and only rely upon your own research into those issues. Use of and access to this resource book or the associated website does not create any relationship between the publisher, authors, and the reader, or any other individual or entity. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAWS, THE MATERIALS AND INFORMATION IN THIS RESOURCE BOOK AND WEBSITE ARE DISTRIBUTED ON AN "AS IS" BASIS WITHOUT WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE.