Qualify for Exempt Status
To apply to be exempt from state sales tax because an organization is nonprofit or charitable in nature, the organization must first obtain income tax exempt status from the federal Internal Revenue Service (IRS). See the following IRS publications for the application and more information:
Visit the IRS Web site at www.irs.gov to obtain these publications and forms, or call 1-800-829-1040.
You must attach a copy of the Federal Determination Letter to the Colorado Application for Sales Tax Exemption for Colorado Organizations (DR 0715). The determination letter must indicate there is an income tax exemption under Internal Revenue Code 501(c)(3). There is no fee for the state sales tax exemption designation.