DOR Taxation web site


Number Title and Description
GIL 07-014 Meal discounts
  Discussion of sales tax reporting requirements of two retailers which jointly offered discount food and entertainment program.
GIL 07-029 Suggested Retail Price / Discounts / licensing re: multi-level marketing company
  Sales tax calculated on discount price to consumer and representatives, not on suggested retail price.  Multi-level marketing company is retailer, not its representatives.  Company ultimately liable for unpaid sales tax.  Representatives do not need sales tax licenses.
GIL 08-003 Exempt wholesale sales, retailer's due diligence
  Supplier, who knows that some purchases by retailer are not for resale, must take reasonable steps to ensure sales are wholesale sales.
GIL-09-026 Agent's responsibility for tax returns and remittance / income tax for industrial banks
  Sales tax license and registration must be under taxpayer's name, not agent of taxpayer who invoices and collects tax from lessees.  Sale of finance lease accelerates sales tax obligation.  General discussion of income tax regarding industrial banks.
PLR-12-002 Affiliate Nexus

Company has nexus in Colorado because it is a component member of a combined group of corporations and another component member has a business presence in Colorado. In addition, Affiliated Company is an indirect representative of Company when it acts on behalf of Company to solicit and facilitate sales and sales-related activities because, among other reasons, it accepts returns on behalf of Company and participates in a loyalty points program with Affiliated Company. Therefore, Company must open a sales tax account and retailer’s use tax account to report and collect local and special district sales taxes for sales shipped into local jurisdictions in which Affiliated Company's stores are located.

 GIL-13-006 Resale Exemption Certificates
  Colorado allows Company, as a wholesaler, to accept sales tax licenses and exemption certificates issued by another state.  If Company contracts to sell its product directly to the consumer and the consumer has an exemption certificate issued by another state, then Company is not required to collect sales tax from the consumer.  However, if Company sells its product to a retailer and the retailer does not have a sales tax license or exemption certificate issued by Colorado or another state, then Company must collect sales tax from the retailer, even if the ultimate consumer has an exemption certificate issued by Colorado or another state.