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Filing Returns and Payment of Taxes

Filing Requirements

Once you have obtained a sales tax license, the Department of Revenue will send you preprinted “Combined Retail Sales Tax Return” forms DR 0100. If you have a wholesaler license, you will file annually.

If you have a retail license and you collect less than $300 in state sales tax each month, you may  file quarterly. If you collect $300 or more in state sales tax every month, you must file monthly.

All sales tax returns are due the 20th of the month following the end of the taxing period (i.e., the return for April-June is due July 20). If the 20th falls on a Saturday, Sunday or holiday, the due date is the next regular business day. If you have a single or multiple event license, an individual return must be filed for every event. Each return must be filed by the 20th of the month following the month in which an event is held. County lodging tax, local Marketing District Tax (LMD) and Home Rule city collected sales taxes are each filed separately. If your sales tax return is not filed or postmarked on or before the due date, you must pay a 10 percent penalty plus an additional . percent for each additional month up to a maximum of 18% on the total tax due plus interest on the amount due.

You must file a sales tax return for every period, even if no tax was collected for the period. Each applicable line must be completed on the DR 0100.

If you sell, rent or lease tangible personal property, or rent accommodations for less than 30 days, you must collect retail sales tax. For more information about sales tax responsibilities or existing sales tax accounts, contact the Colorado Department of Revenue at 303-238-SERV. You can also visit its website at www.taxcolorado.com. If you use products on which Colorado sales tax has not been paid, consumer use tax is due!

SPECIAL SITUATIONS

Mail Order and Delivery

When you have a mail order business or you sell a product contingent upon delivery to another location, by state rules you must collect the taxes you have in common with the delivery location. For example, if your business is in Durango and your delivery site is in Durango, you must collect 7.9%, the same amount you would collect if it were purchased at your business location without delivery; there is no difference in the amount of tax collected. Effective December 1, 2018, if your business is in Durango and you deliver to Grand Junction, you must collect the taxes that apply for Grand Junction. However, Grand Junction is a “self-collected” Home Rule city. Therefore, it is recommended that you contact the city directly regarding the collection of the city sales tax if your business will be doing the actual delivery into Grand Junction or any other “self-collected” Home Rule city. Further, if you have a branch of your business in the destination location, you must collect all the taxes that would be normally collected by the branch location. In this example, you would collect 7.65% based on the taxes collected in Grand Junction. The rule regarding branch locations and delivery applies to all locations. Finally, with the exception of auto sales, if your customer takes possession of your product at your place of business, you must collect all the sales taxes for your area, regardless of where your purchaser resides or intends to use the item. NOTE: Internet sales are the same as catalog sales for Colorado sales tax purposes.