DOR Taxation web site

Discounts / Credits

Number Title and Description
GIL 07-001 Credit for taxes paid to another state on leased vehicles
  Discussion of credit for taxes paid to another state on leases of motor vehicles if the legal incidence of tax falls on lessee, not lessor, even though lessor may collect the tax. Colorado does not require other state to give similar credit as a condition to receiving Colorado credit.
GIL 07-007 Discount / Free rental
  Satellite TV provider, which offered one month free rental of satellite receiver as an inducement to customers to purchase non-taxable satellite TV service and taxable rental of satellite box, is liable for use tax for the one month of free rental.
GIL 07-014 Meal discounts
  Discussion of sales tax reporting requirements of two retailers which jointly offered discount food and entertainment program.
GIL 07-016 Consulting and project management services, credit for taxes paid another state
  Consulting and project management services not taxable if separable from sale of surveillance products.  Retailer cannot claim credit for taxes incorrectly paid another state.
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 07-033 Tax calculation on price adjustments
  Distributor allowed to calculate sales tax on price later adjusted to reflect discount price of product sold as a sample as part of marketing effort with retailer.
PLR-08-002 Sales tax on discounted taxable and nontaxable bundled goods and services
  Sales tax calculated on retailer's costs when taxable item sold at below costs and bundled with non-taxable service.
GIL 08-011 Hostess credits / transportation
  Credits and discounts distinguished.  Credits given by direct marketer to hostess for holding a sales event at hostess' home are not allowed for purposes for calculating sales tax.  Transportation charges are taxable because customers did not have any alterative but to use retailer's transportation services.
GIL 08-017 Federally funded coupon program
  Supplements and other products are taxable.
GIL 08-022 Federally funded coupon program
  Federal program offering consumers rebates for certain purchases is not deducted from sales price when computing sales tax.
GIL-11-006 Manufacturer's Coupons
  A retailer is reimbursed by the manufacturer for the amount of the reduction in purchase price; thus, sales tax applies to the full selling price before the deduction of the manufacturer's coupon.
 GIL-11-009

Rebates

  Programs offering consumers rebates for certain purchases are not deducted from the sales price when computing sales tax. 
 GIL-13-002 Sales Tax Refunds When an Exemption Certificate Is Provided After the Sale
  The sales tax refund procedure outlined in the ruling, including the ninety day limitation on refunds by vendor, appears to be consistent with Colorado statutes.
 GIL-13-027 Drilling Equipment
  Company’s purchases of steel, cement, pipe, and other material from suppliers are not wholesale purchases because Company alters and uses the materials to build structures. If the sale of equipment occurs outside Colorado and Company pays sales or use tax to another state and Company, thereafter, moves the machinery to Colorado for use in Colorado, then Company must pay Colorado state use tax and any state-administered local use tax applicable to the location where the machinery is registered. Company is entitled to a credit against any such Colorado state and local use taxes equal to the amount of sales or use tax paid to the other state.