DOR Taxation web site

Government Entities

Colorado statute exempts from state and state-collected sales tax all sales to the United States government and the State of Colorado, its departments and institutions, and its political subdivisions (county and local governments, school districts and special districts) in their governmental capacities only. Home-rule jurisdictions may have different rules regarding government tax exemptions, and should be contacted individually.

 

For a government entity to take advantage of the tax exemption, the purchase must be made with a prescribed government form or purchase order, and paid for directly to the seller by warrant or check drawn on governmental funds, or via credit card in the name of the exempt governmental agency.

 

For more information, please see Publication FYI Sales 63, Government Purchases Exemptions.