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Question: Are labor charges subject to sales tax?
Generally, labor and services are not subject to sales tax. Colorado taxes retail sales of tangible personal property and select services including telephone services, rooms and accommodations, food for immediate consumption, and certain utility services. Labor and service charges that are separable from the property being sold and that are separately stated on an invoice are not subject to state sales tax.

If the items of tangible property and the labor and service charges are lumped into one purchase price, the entire transaction is subject to sales tax.

For Further Information:
FYI Sales 52

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