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
For Further Information:
FYI Sales 52
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