DOR Taxation web site

Rulings By Number

 Number

 Title and Description

2014

 
 PLR-14-001

Nonprofit Corporation a “Taxpayer”

 

A nonprofit corporation is a “taxpayer”  for purposes of a gross conservation easement credit. A land trust is not eiligble for the credit.

 GIL-14-001 Promotional Videos
  The production of a video is a non-taxable sale of services, even though some inconsequential property is transferred from seller to buyer.  If charges for the raw footage and project file reflect the value of the services to produce the raw video and not the value of the property, the raw footage and project files will also be considered a non-taxable service.  Company must pay sales or use tax on the items it uses to perform its service.
 PLR-14-002 Foot Orthotics, Braces, Splints, and Implant Kits
  Most foot orthotics, braces, and splints are exempt only if furnished to the patient by a licensed provider as part of the provider's professional service. A joint implant and pins, which are purchased together with a drill bit as a "kit", are exempt from tax, but the drill bit included in the kit is subject to tax.
 GIL-14-002 Modular Homes
  The tax liability will depend upon the type of contract the builder uses with the homeowner.
 PLR-14-003 Aggregate Mining, Asphalt and Recycled Asphalt Production
  Asphalt production inside and outside an enterprise zone is manufacturing, unless fifty percent or more of the new asphalt is comprised of recycled asphalt. If new asphalt is comprised of fifty percent or more of recycled asphalt, then production of such asphalt is not manufacturing, regardless of whether it is inside or outside an enterprise zone. Aggregate mining and recycled asphalt production is manufacturing when performed in an enterprise zone, but is not manufacturing when performed outside an enterprise zone. Use tax does not apply on aggregate materials mined from manufacturer’s own gravel pit. Lease payments related to mining may constitute the taxable sale of tangible personal property.
 GIL-14-003 Domestic Jet Fuel Used in International Flights
  Colorado sales tax applies to aviation fuel sold in Colorado to commercial airlines even if the fuel is used for international flights.
 GIL-14-004 Sales Taxability of Federal Excise Tax on Jet Fuel Sales
  Sales tax is calculated on the price charged to the customer.  However, if the purchaser is levied a direct federal tax, the sales tax calculation excludes the direct federal tax. A direct federal tax is a tax levied by the United States on the taxpayer, which, in the case of sales tax, is the purchaser.
 

 Number

 Title and Description

2013

 
 GIL-13-001

Purchase Price That Includes Sales Tax

 

Company that either provides an invoice for the sale and separately states the tax or has a conspicuous sign that shows the price of each item and separately states the amount of tax for each item offered for sale is in compliance with state law.

 PLR-13-001 Apportionment
  Company may file under an alternative method of apportionment as described in the letter.
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.
 PLR-13-002 Invoice Component Fees
  Fees charged by a company in the business of retrieving and copying medical records of health providers for use by insurance companies, lawyers, and other third-parties are not subject to sales and use tax.
 GIL-13-003 Rental and Labor Charges
  If a retailer provides both taxable tangible personal property and non-taxable services, the taxability of the transaction is generally be determined on whether the “true object” of the transaction is the sale of a service or rental of tangible personal property.
 PLR-13-003 Computer Software and Computer Software Maintenance Contracts
  Software that is prepackaged, has a nonnegotiable license agreement, and is delivered on a tangible medium is taxable.  Nonnegotiable software license agreements presented to the buyer on-line qualify as a tear-open, nonnegotiable license. Optional maintenance agreements are generally viewed as a service and are not subject to sales and use tax.
 GIL-13-004 Special District Taxes
  Sales of fuel for industrial purposes are exempt from state, state-administered cities, counties, and special districts sales taxes.
 PLR-13-004 Installation, Repair and Inspection Charges and Payments to Third Party Subcontractors
  Company’s charges for installation, repair, or inspection of fire suppression system built into real property are subject to sales tax when billing clients on a time and material basis for work performed by a subcontractor. Company’s payments to subcontractors for this work are not subject to sales tax.
 GIL-13-005 Tear Serum Testing Modules
  The exemption for “blood test” does not include a test relating to tears produced by the eye, even though the tests are similar in some respects.
 PLR-13-005 Retrieving and Copying Medical Records
  Fees charged by a company in the business of retrieving and copying medical records of health providers  are not subject to sales and use tax because Company is providing a service.
 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.
 PLR-13-006 Hardware, Software and Services
  The hardware and software purchased by Company is consumed by Company in the provisioning of services to clients and is not rented to clients. Company, who provides routing of intrastate telephone calls and other communications, is providing intrastate telecommunication services in Colorado.
 GIL-13-007 Maintenance Agreements
  Company's client pays an IT services company to install free Microsoft patches and software upgrades, which are taxable standardized software, indicates that the true object is the sale of a nontaxable service rather than the sale of tangible personal property.
 PLR-13-007 Third Party Administrator of Insurance Claim Obligations
   Company’s purchases from suppliers are exempt wholesale purchases when Company resells the goods to the insurance companies. Therefore, Company must collect the applicable sales taxes from insurance companies.
 GIL-13-008 Fees Associated with Company-Owned Vending Machines
  The taxability of various fees charged by a vending machine operator whose vending machines are located at customers' locations are discussed.
 PLR-13-008 Digital Imagery
  A static digital image sold under the various methods to various customers is the sale of tangible personal property for purposes of Colorado income tax apportionment. The sale is not a Colorado sale if the destination of the product is not in Colorado and Company is taxable in the destination state. Regardless of whether the destination state treats the sale of digital images to the federal government as sourced to the origination state (Colorado), Company must source a sale to the federal government to the destination state for Colorado apportionment purposes.
 GIL-13-009 C Corporation Income Tax Return
  A company engaged only in the solicitation of orders for other companies is liable for income tax if it has nexus in Colorado. Public Law 86-272 does not apply because company is engaged in a service and not the sale of tangible personal property.
 PLR-13-009 Consigned Merchandise Procured for Auction
   Company, which has nexus in Colorado, must collect sales tax on property sold at its auctions, which are conducted outside Colorado, if the taxable tangible personal property is delivered to a buyer who is located in Colorado, or delivered to a person who is designated by buyer to receive the goods and who is located in Colorado.  Company also has an obligation to collect Colorado use tax if the sale is deemed to occur outside Colorado but is delivered into Colorado to the buyer for use, storage, or consumption in Colorado.  Company does not have an obligation to collect sales or use tax if the property is sold at auction conducted outside Colorado and the property is delivered to the buyer or consumer who is located outside Colorado.
 GIL-13-010 Re-Rental Equipment
  A company that leases equipment from a rental company and that uses its own employees or subcontracts with an independent contractor to operate the equipment cannot claim a resale exemption.
 GIL-13-011 Plumber's Fees
  The method a plumber uses to invoice customers determines how sales and use tax is collected.
 GIL-13-012 Sutures and IV Catheters
  Sutures qualify for an exemption but IV catheters do not.
 GIL-13-013 Meal Included in 501(c)(3) Organization’s $25,000 Proceeds Limit
  The net price of the dinner charged by a charitable entity for a fundraising event is included in the gross proceeds calculation of the $25,000 net proceeds exemption.  
 GIL-13-014 Software License Renewal
  A charge for a license renewal to use taxable software is subject to tax when the original license and software were delivered by a tangible medium but the renewal is delivered electronically with no transfer of tangible personal property because the license renewal  is simply a charge for the continuing right to use taxable tangible personal property.
 GIL-13-015 Fees and Charges Applied to Utility Bills
  The taxability of charges for connecion, disconnection, late-payment and other items are discussed.
 GIL-13-016 Fair Market Value Lease Rate
  The Department generally uses the lease price resulting from arms-length transactions as the best method for valuing an airplane lease price that is not the result of an arms-length transaction.  If arms-length pricing is not available, the Department will look at various cost components, including interest rates, to calculate the fair market value of airplane lease payments.
 GIL-13-017 Seeds and Plants, Food and Dietary Supplements, Medical Supplies, Test Kits, and a Coupon Book
  Exemptions listed under §39-26-716, C.R.S. apply to commercial agriculture and livestock operations.  Seeds and orchard trees that are not used for a commercial agricultural purpose are not exempt. Colorado excludes dietary supplements from the definition of food. See ruling for discussion of medical supplies, test kits and coupon books.
 GIL-13-018 Entry Towers
  If entry towers are fixtures, their taxability will depend upon the type of contract Company uses with the owner. Contractors who charge the owner a lump sum amount do not collect sales tax from the owner, and, instead, pays sales tax when they acquire the building materials from the supplier or manufacturer.  If a contractor uses a “time-and-material” contract with the owner, then the contractor must collect sales tax from the owner on the marked-up price of the entry tower, but not on the labor charges.
 GIL-13-019 Sale of Domestic Jet Fuel for Commercial International Flights
  Colorado exempts from its fuel excise tax specially blended kerosene and other fuel products if they are exempt from federal aviation fuel taxes and used in aircraft operated by scheduled air carriers or commuter airline operators.
 GIL-13-020 Electronically Delivered Software
  Electronically delivered goods, such as music, movies and books will still be viewed as taxable sales of tangible personal property after July 1, 2012, which is the effective date of amendments to the statutory definition of tangible personal property that exclude electronically delivered computer software. The amendments also exclude from tax charges by application service providers (ASP).
 GIL-13-021 Public Law 86-272
  A company will exceed the protections of P.L. 86-272 if an employee participates in activities that are considered more than activities closely related to solicitations.  A company whose employee regularly accepts returns on behalf of company or regularly handles warranty claims will likely be viewed as having engaged in activities that exceed those protected by P.L. 86-272 and, therefore, subject the company to a Colorado income tax filing obligation.
 GIL-13-022 Material Safety Data Sheet
  Reports and completed applications for governmental regulatory compliance activities are generally treated as a service. However, access to data, without any significant analysis of the data by Company, would generally be treated as a taxable digital product.
 GIL-13-023 Lease of Medical Equipment
  A lessor of a “true lease” must pay sales taxes when it acquires the property if the lease term is three years or less, unless the lessor obtains prior permission from the Department to collect sales or use tax on lease payments. If the lessor uses a leases that is more than three years in duration or if the lease is a finance lease (regardless of whether it is more or less than thirty month duration), then lessor must collect sales or use tax on the lease payments, including the final “purchase” payment, and lessor does not have the option to pay sales or use tax when it first acquires the property.
 GIL-13-024 Colorado Source Income
  Out-of-state accounting firm, which has a non-resident employee working remotely in Colorado, has nexus in Colorado if the employee's income exceeds $50,000, and, thus,  the firm must allocate income to Colorado based on where the cost to perform the service is incurred.
 GIL-13-025 (amended) Liquefied Petroleum Gas and Excise Taxes
 GIL-13-025 Liquefied petroleum gas used for home heating and other non-vehicle purposes does not fall within the definition of special fuels and, thus, are not be subject to the excise tax when used in such a manner. Because the tax must sometimes be paid before the ultimate use is established, only fuel that the distributor is reasonably certain will be used for home heating or other non-vehicle purposes may be sold without the excise tax. The Department will presume that propane delivered to a stationary tank located next to a residence that does not have any attachments to extract the propane, except for a delivery line to the home, is used solely for home heating and can be sold tax free.
 GIL-13-026 Innovative Motor Vehicle Credit
  A taxpayer can claim an innovative motor vehicle credit for each motor vehicle it purchases or leases so long as the vehicle is registered, titled, and used in Colorado.
 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.
 GIL-13-028 Bagged and Packaged Salads
  Bagged salads that do not include salad dressing or utensils qualify as food for home consumption. Bagged salads that contain all the ingredients of a prepared salad, including the salad dressing, and packaged salads in the shape of a bowl that contain a variety of lettuce, vegetables, salad dressing, a utensil, and may include meat, are “prepared salads” subject to tax.
 

 Number

 Title and Description

2012

 
 GIL-12-001

Prescription Reviews

 

Pharmacist's review of patient’s medication record is a service and not subject to sales and use tax, unless the sale of service and tangible personal property are inseparable and the “true object” of patient is the report.

 PLR-12-001 (amended) Drug-Device Combination Products
 PLR-12-001 Product, which provides a framework over which bones grow and heal, is exempt as material furnished by a licensed provider as part of the provider’s professional services to the patient, even if Product is purchased by hospitals, clinics or surgery centers.  Product does not qualify for the durable medical equipment exemption and may not qualify for the prosthetic device exemption.
 GIL-12-002 Bio-Engineered Medical Device/Orthotic
  A shoe insert does not qualify for the prosthetic device exemption.
 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-12-003 Lay-a-way Service and Cancellation Fees
  A lay-a-way service is not a sale until final payment. The lay-a-way service fee is included in the sales tax calculation if the fee for the service is not optional. If the lay-a-way is canceled before title or  possession is transfered to customer, then the lay-a-way service fee and cancellation fee is not subject to sales tax because there was no taxable sale.
 PLR-12-003 Charges for Services
  Charges for services, as described in the ruling, are not subject to sales or use tax, regardless of whether Company provides copy/print center services. Company’s charges for certain services would become subject to sales or use tax if Company does not separately state charges for tangible personal property used by Company to provide the services.
 GIL-12-004 Fluoride Varnishes and Streaming Videos to Dentist's Office
  Fluoride varnishes sold to a dentist's office may qualify as material furnished to a patient as part of a licensed provider's professional service. General discussion on whether electronically delivered informational videos delivered to a business are subject to tax.
 PLR-12-004 Drug-Device Combination Products
  Product, which provides for bone void filling and fracture repair of the pelvis and extremities, is exempt as material furnished by a licensed provider as part of the provider's professional service to the patient, even if Product is purchased by hospitals, clinics or surgery centers.
 GIL-12-005 Internal and External Fabrication Labor Costs
  Fabrication labor costs performed by a fabricator on goods that the fabricator later converts to its own use are not included in fabricator’s use tax calculation; but fabrication costs are included in the sales tax calculation if the fabricator sells its fabricated goods at retail. Charges for fabrication services performed by a third party are included in the sales tax calculation of the fabricator’s retail sale of the fabricated goods to the ultimate consumer if the third party provides the fabricator with both the materials and fabrication services.
 PLR-12-005 Welding Gases and Tools
  Welding gases that are a fuel or energy source used in one of the enumerated industries are exempt from sales and use tax. Oxygen and inert gases used in welding are not exempt fuel gases.  Hand-held torches and welding attachments, parts, and related tools are not machinery or machine tools exempt from Colorado sales and use tax.
 GIL-12-006 Application Service Providers
  Computer software that is used by a consumer via an ASP is not taxable computer software because the software is not considered to be delivered to the consumer in a tangible medium.
 PLR-12-006 Food and Nutritional Products
  Products qualify as 'food' and, therefore, are exempt from state sales and use taxes if sold for domestic home consumption. Products are subject to local sales taxes of local jurisdictions that elect to levy sales and use taxes on food, unless product is purchased with SNAP or WIC benefits. The tax treatment of bundled transactions depend on the items in the bundle, the value of the items, and whether the items are separable.
 GIL-12-007 Transportation Charges
  Transportation charges that are inseparable from the sale of the good are taxable. Non-optional charges by wholesaler to retailer for drop shipment transportation of goods are not "freight-in" charges and are taxable if passed on to customer.
 PLR-12-007 Subscription Fees
  A subscription fee for an online publication, which is a duplicate of Company's newspaper, is not subject to state and state-administered local sales and use taxes because it is still considered a newspaper. A subscription fee for access to stock screens, comparative performance ratings, and emerging stocks is a service and, thus, not subject to state sales or use tax.
 GIL-12-008 Sales to Native American Tribal Members and Tribal Governments
  A sale of tangible personal property to a Native American tribal member is exempt from sales tax if the sale occurs on the tribal member's tribal lands. However, sales to non-tribal members on tribal lands are not exempt, and sales to tribal members off the member's tribal lands are not exempt sales
 PLR-12-008 Net Capital Gain From The Sale of Business Assets
  Taxpayer, a limited liability company, and its members cannot subtract from Colorado taxable income the net capital gain resulting from the sale of the Taxpayer’s goodwill because the sale did not qualify as a sale of an ownership interest.
 GIL-12-009 Durable Medical Equipment
  A medical device can qualify for the durable medical equipment exemption if it (a) can withstand repeated use; (b) is primarily and customarily used to serve a medical purpose; (c) is generally not useful to a person in the absence of illness or injury; and (d) is not worn in or on the body.
 GIL-12-010 Tangible Personal Property Assembled in Colorado
  Colorado generally exempts from sales and use tax tangible personal property purchased by a manufacturer who integrates the property into a finished manufactured or processed product and holds the same for resale. This exemption applies regardless of whether the finished goods are sold inside or outside Colorado.
 GIL-12-011 Reimbursable expenses
  In general, reimbursable expenses are not subject to sales or use tax, unless the reimbursement is more properly viewed as a resale of taxable goods. However, if goods or services for which reimbursement is sought are more fairly construed as being consumed by a company rather than by the company’s client, then the reimbursement charge to the client is not treated as a resale of the goods or services. 
 GIL-12-012 Non-resident Leases of Passenger Cars
  The place where the vehicle is registered will determine which state and local taxes apply. If the person leasing the vehicle is, at the time the lease is executed, a non-resident of Colorado and immediately takes the vehicle to another state for use outside of Colorado, then Company/dealer is not liable to collect any taxes on the leased vehicle.
 GIL-12-013 Training Classes for Corporations
  The provision of education and training is generally a non-taxable service.  If tangible personal property is transferred from the educational service provider to the student, this may change the tax obligation. Company may need to remit income tax if it has sufficient nexus to be considered to be doing business in Colorado.
 GIL-12-014 Full-Service Truck Washes
  Full-service truck washes are generally viewed as a non-taxable service. However, Company must pay use tax on supplies used within the wash process.
 GIL-12-015 Manufacturing Equipment Exemption for Bakeries
  Large-scale wholesale bakery would likely be treated as a as manufacturer. If Company is engaged in manufacturing, then purchases of machinery or machine tools and parts thereof are exempt from state sales and use tax when the machinery is used in manufacturing.
 GIL-12-016 Affiliate Nexus
  The affiliate nexus rule applies to state-administered localities.
 GIL-12-017 Products for the Blind and Legally Blind
  The optical sales and services exemption explicitly excludes Braille reading devices. Products may qualify for the durable medical equipment exemption if the Braille devices serve a “medical” purpose and are dispensed and purchased pursuant to a prescription.
 GIL-12-018 Special Mobile Machinery
  When Company and lessee / purchaser are located in the same tax jurisdiction, then Company must collect sales tax for that state-administered local tax jurisdiction, but does not have an obligation to collect the local sales taxes of other local tax jurisdictions in which Company does not have a sufficient nexus.
 GIL-12-019 Nexus
  Nexus can be established by the presence of taxpayer's employees in this state, even if their work is not directly related to the taxable transaction.

 Number

 Title and Description

2011

 
 GIL-11-001

Lay-a-way and Partial Payment Plans

 

Sales tax is not due on installment payments made on lay-a-way and partial payment plans until final payment is made.

PLR-11-001

Direct Marketing Advertising Material

 

Out-of-state direct marketing company subject to consumer's use tax for material mailed to Colorado recipients.

 GIL-11-002 Sales Tax on Personal Property Tax
  Charge for reimbursement for personal property tax incurred by lessor and separately stated on lease invoice is included in calculation of sales tax owed by lessee.
 PLR-11-002 Financial and Non-Financial Institutions File Combined Report
  Affiliated corporations must file a combined report that includes both affiliated financial and non-financial institutions.
 GIL-11-003 Auctioneer Administrative Fees
  Auctioneer fees that are not optional and viewed as inseparable from the sales transaction are included in the sales tax calculation.
 PLR-11-003 Authentication Services
  Sales of authentication services by means of a digital certificate are not subject to Colorado sales or use taxes.
 GIL-11-004 Auctioneer's Sales Tax Obligation on Motor Vehicles
  An auctioneer who sells a motor vehicle on behalf of an owner is, unless an exception applies, a retailer and must collect and remit sales tax administered by the department.
 PLR-11-004 Direct Mail Advertising Materials and Fulfillment Services
  Separately stated charges for the sale of direct mail advertising materials to a client who directs and advertising agency to instruct a printer to print and mail the material to customers located outside Colorado are not subject to sales and use tax. Separately stated charges of an advertising agency to its client for mailing fulfillment services are not subject to sales or use tax.
 GIL-11-005 Insulin Infusion Pumps
  An infusion pump and related disposable supplies are exempt as an “insulin measuring and injection devices” because the pump measures an insulin dosage and injects the insulin.

 PLR-11-005

Collecting and Reporting Adjustment Payments

 

Company collects and reports sales and use taxes as set forth in the Discussion section.

 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 for the manufacturer’s coupon.

 PLR-11-006

Local Sales Tax

 

The collection of local sales and use taxes depends on the local tax jurisdiction in which both the retailer and customer are located. The means by which a product is delivered can affect whether local sales and use tax applies.

 GIL-11-007 Freight-in Transportation Charges
  Transportation charges incurred from transporting tangible personal property from the place of production or the manufacturer to the seller or to the seller's agent or representative are deemed “freight -in” charges and are subject to tax
 PLR-11-007 Software Application or Service
  Users true object is the use of the service provided rather than the lease of computer servers or software
 GIL-11-008 Bi-weekly Newspapers / Printers
  A newspaper distributed every two weeks does not qualify as a “newspaper” that is exempt from Colorado sales and use taxes. A printer must collect sales tax from the distributor of a non-exempt newspaper.
 PLR-11-008 Food and Nutritional Products
  Products in question qualify as 'food' and, therefore, are exempt from state sales and use taxes if sold for domestic home consumption. These products are subject to local sales taxes of those local jurisdictions that have elected to levy sales and use taxes on food, unless the product is purchased with SNAP or WIC benefits.
 GIL-11-009 Rebates
  Programs offering consumers rebates for certain purchases are not deducted from sales price when computing sales tax.
 PLR-11-009 Photovoltaic Energy Systems
  The purchase and lease of a photovoltaic energy systems by an entity other than the ultimate user is exempt from state and state-administered sales and use taxes under the Renewable Components exemption, except an on-site monitoring system which is subject to sales and use taxes.
 GIL-11-010 Liquor-filled candy
  Liquor-filled candy does not qualify as exempt food for state sales and use taxes and state-administered local sales tax purposes.
 PLR-11-010 Partial Purchase Price Exemption
  A portion of the purchase price of a fuel used in manufacturing a tangible personal property is exempt from sales and use taxes if a portion of the fuel material is a necessary and desirable component of the manufactured product.
 GIL-11-011 Services Related to Medical Devices
  Colorado does not impose sales tax on the provisioning of medical-related services.
 GIL-11-012 Local Sales Tax on Internet Sales
  An internet retailer who has a business presence in a local tax jurisdiction must collect that jurisdiction's sales tax. 
 GIL-11-013 Lease Payments
  In a 'true' lease, lessor is required to pay sales tax on a purchase from a vendor if the sale takes place in Colorado or pay Colorado use tax if its purchase from a vendor occurs outside Colorado.  In a finance lease, the “lessor” must collect tax on the “lease” payments.

 GIL-11-014

Electronically Delivered Newspapers and Magazines

  Monthly newspapers and magazines delivered electronically are subject to sales tax.

 Number

 Title and Description

2010

 
 PLR-10-001 

Carbon dioxide / tanks

 

Supplier's sale of carbon dioxide to retailer for beverage carbonation is exempt wholesale sale, but sale of nitrogen as beverage propellant is a taxable retail sale. Supplier's rental charges for gas cylinders and storage tank are not exempt under container exemption.

 PLR-10-002 

Transportation Services

 

Charges for transportation services are presumed exempt, but are taxable if seller does not separately state the charge for services or the service is inseparable from sale of taxab le goods.

 PLR-10-003 

Patient Meals

 

Medical facility is the consumer of patient meals prepared by food service company and facility must pay sales tax on the charges by the food service company, including charges for overhead and management fees. 

 PLR-10-004  Medical Device / Service v. Sale of TPP
  Sale of catheter to a healthcare provider is not an exempt theraupetic device because it is not sold pursuant to a written recommendation. A healthcare provider is a provider of a service and cannot claim a resale exemption for the catheter by itemizing it on the patient's invoice.
 PLR-10-005  Conversion of association into corporation
  Conversion of a church organized as an unincorporated association into a corporate sole does not create a sale or use tax obligation because the corporation is an exempt entity. Declined to address whether conversion constitutes a sale or is supported by consideration.
PLR-10-006 Use tax inapplicable to buyer's acceptance testing.
  A buyer's acceptance testing under Colorado's Uniform Commercial Code is part of the sales transaction and not a separate taxable use.
 GIL-10-001 Daily Rental Fee
  Daily rental fee applies only to retailers who typically lease motor vehicles for less than 30 days, regardless of whether the vehicle was leased for more than 30 days.
 Number  Title and Description

2009

 
 GIL-09-001

Taxability of service charge / nexus of call center employing independent contractors to perform work for clients in state

 

Taxability of mark-up charged by in cases of resellers, agents, brokers, third party contracts.  Income derived from Colorado sources is taxable.  General discussion of nexus for income and sales tax purposes.

 GIL-09-002 Sales of building materials between controlled companies
 

General discussion of application of sales and use tax for contractor and manufacturer who are controlled companies.

 PLR-09-002 Apportionment of income for debit card company
 

Debit card company is a financial institution and must apportion income based on market approach.

 GIL-09-003 Taxability of FCC license and coordination charge re: two-way radios
 

General discussion of taxability of FCC license and coordination charge made in connection with sale of two-way radio.

 PLR-09-003 Fracturing materials
 

Company directed to collect state use tax and county sales tax on fracturing materials pending final decision in Noble Energy case.

 GIL-09-004  Gift Baskets
 

Sales tax on gift baskets containing taxable and non-taxable items whose prices are not separately stated is computed on the full purchase price unless the value of the taxable item is de minimis.

 PLR-09-004   Optional services offered with rental car
 

Separately stated charges for optional services (roadside assistance, toll fees, and carbon off set programs) are not included in calculation of sales tax due on rental of motor vehicle.

 GIL-09-005

Lessor/seller of motor vehicle must collect and remit sales tax on sale of motor vehicle

 

Lessor who sells motor vehicle to lessee at the expiration of a motor vehicle lease must collect and remit sales tax.

 GIL-09-006 Gas meter reading fee
 

Fee charged by propane distributor is taxable if the service is not separable from sale of taxable sales of propane.

 GIL-09-007 Room rental to church members on ski vacations
 

Sales tax exemption for church does not apply to lodging by church members if primary activity was a ski vacation.

 GIL-09-008

Sales Nexus created by related service activity in state / Income tax nexus.

 

Non-taxable services may create nexus for sales tax collection for one to two sales per year by nonresident single member LLC.  Income generated from sources within Colorado subject to Colorado income tax.

 GIL 09-009 Enteral Feeding Pump
  Feeding pump is not exempt product.
 GIL 09-010

Corporation apportions income to Colorado proportionately based on cost of employee located in Colorado 

 

A corporation must apportion to Colorado a portion of its income generated from services provided to customers outside Colorado because a portion of the cost of providing that service was incurred in Colorado.

 GIL-09-011 Preparation of sales tax return and exemption certificates
 

Internet service that prepares sales tax exemption certificates and sales tax returns is a non-taxable service.

 GIL-09-012 Income Tax Nexus / PL 86-272 / warehouse
 

Company, whose only contact with Colorado is to make drop shipments of goods to recipients located in Colorado and to maintain a warehouse in Colorado, has nexus with Colorado for income tax purposes and is not protected by PL 86-272.

 GIL-09-013 Medical Supplies
 

General discussion of exemptions for medical supplies furnished by a doctor or sold to a charitable entity

 GIL-09-014

Taxability of service charge of call center employing independent contractors to perform work for clients in state

 

Taxability of mark-up charged by in cases of resellers, agents, brokers, third party contracts.

 GIL-09-015 Dietary supplements
  Dietary supplements are not exempt from sales and use tax.
 GIL-09-016 Sales tax calculated as a percentage
 

Sales tax is calculated by multiplying the tax rate by the sales price.  The department does not authorize retailers to use sales tax charts.

 GIL-09-017 Sales of propane and firewood
 

Sale of propane and firewood for residential purposes is exempt.  Retailer must provide reasonable documentation to establish sales are exempt.

 GIL-09-018

Print and mail services / data transfer / address confirmation / electronic data search.

  Taxability of printed material discussed.
 GIL-09-019 Display Items
  Retailer may be liable for use tax for items pulled from inventory.
 GIL-09-020 Nominal purchase price taxable
 

Nominal price paid by lessee to purchase vehicle at expiration of finance lease is subject to sales or use tax.

 GIL-09-021 Pet recovery products and services
  Sales tax due on bundled sales of taxable products and non-taxable services.
 GIL-09-022 Medical Supplies
 

General discussion of exemptions for custom disposable instruments for patients undergoing joint replacement surgery.

 GIL-09-023 Obligation to file returns if no reportable sales
 

Company must register and file sales tax returns even if it does not have any sales tax liability for the reporting period.

 GIL-09-024 Modular home.
  Modular home retailer liable for sales or use tax in Colorado
 GIL-09-025 Downloaded data
  Documents downloaded by customers from the Internet subject to sales or use tax.
 GIL-09-026

Agent's responsibility for tax returns and remittance / income tax for industrial bank

 

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.

 GIL-09-027 Maintenance and Service agreements
 

Sales tax applies to maintenance and service agreements sold in connection with sale of taxable goods, unless agreement is in a separate contract or retailer obtains permission to exempt a percentage of sales price.  No exemption if customer has no option but to purchase maintenance/service agreement as part of purchase of taxable goods.

 GIL-09-028 Insurance company income tax nexus
 

Insurance company does not create nexus if only contact is to register with the Secretary of State to do business in Colorado, but may have nexus if insurance law requires taxpayer to  administer claims in state.

 GIL-09-029 Oilfield fishing equipment
 

Taxability of oilfield fishing equipment will depend on whether the true object of the transaction is a service or the rental of taxable tangible personal property.  The department will consider a number of factors, including whether customer charged a lump sum, whether customer must use taxpayer's equipment operator, and whether customer has obligations typical of a lessee.

 GIL-09-030 VoIP
  Intrastate Voice over Internet Protocol is a taxable telecommunication service.
 Number  Title and Description

2008

 
 GIL 08-001 Custom software, installation, repair, transportation, training
 

Custom software, installation, repair, transportation,and training are generally non-taxable services.

 PLR 08-001 Income Exemption / Gross Premium Tax
 

Insurance company is exempt from state income tax because it is "subject to" gross premium tax, even though it is also exempt from gross premium tax.

 GIL 08-002 Hosting and networking services
 

Charges by an out-of-state company for webhosting and network connectivity charge where servers are not located in Colorado are not taxable.

 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 08-003

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 08-004 Scooters, boot walkers, heel pads
 

Sales of scooters, boot walkers, and heel pads are not exempt therapeutic devices.

 GIL 08-005 Merchandising services
  Retailer provided service of merchandising is not taxable.
 GIL 08-006 Cosmetic medical equipment / therapeutic devices
 

Products that are primarily used for cosmetic purposes are not exempt therapeutic or prosthetic devices even though they provisioned only by medical practitioners.  This letter has been amended by GIL-08-006 amended.

 GIL-08-006 amended 

Cosmetic medical equipment / therapeutic devices

 

Collegen gel used for cosmetic purposes is exempt from sales tax if furnished by a doctor as part of professional services provided to a patient.

 GIL 08-007 For-profit day care providing food, plates, utensils
 

Day care is providing a service and is the consumer of the food products and related accessories.

 GIL 08-008 DVD production
 

Labor cost of third-party must be included in retailer's purchase price even if separately stated on the customer's invoice.

 GIL 08-009 Contractors / fixtures
 

Discussion of factors considered in determining when tangible personal property becomes a non-taxable fixture to real property.  Department will consider, among other things, how taxpayer treated the property on federal income tax return.  Discussion of lump sum and time and material construction contracts.

 GIL 08-010 Home study / school material
 

Company that offers home study program and sold books and supplies is not selling a service.  Therefore, sale of books and other goods to customer is taxable.

 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 08-012 Propane tanks (refilled or empty) / prepaid phone cards
 

Propane is exempt if sold for residential use.  Retailer must take reasonable steps to ensure exempt sales.  Discussion of taxability of customer supplied tanks and retailer supplied tanks.  Distributor of prepaid phone cards is consumer of card stock and is not entitled to resale exemption.  Retailer of taxable goods or service purchased with card is responsible for collecting tax, not the card distributor.

 GIL 08-013 Mattresses / pillows as therapeutic devices
 

Mattresses and pillows that are not specifically designed for therapeutic purposes are taxable even though they may be used for therapeutic purposes.

 GIL 08-014 Surgical equipment
  Discussion of exempt surgical equipment.
 GIL 08-015 Reporting excess sales tax paid
  Discussion of how to report on sales tax return excess tax collection.
 GIL 08-016 Software updates, upgrades
 

Upgrades of taxable software are taxable.  Software to correct bugs in original taxable software is not taxable.

 GIL 08-017 Federally funded coupon program
 

Federal program offering consumers rebates for certain purchases is not deducted from sales price when computing sales tax.

 GIL 08-018 Food supplements, soap, deodorant, products
  Supplements and other products are taxable.
 GIL 08-019 Print material
  Discussion of taxability of print material and collection of local sales taxes.
 GIL 08-020 Restocking fees, travel, training, rental of equipment
 

A retailer who charges a restocking fee has not refunded the full purchase price and, therefore, is not entitled to a refund of any tax.  Travel and training are not taxable.  Rental of property is taxable.

 GIL 08-021 Supplements, TENS, pads
  Dietary supplements are taxable.  TENS are exempt therapeutic device.
 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 08-023

Purchase options on leases, insurance, late payment, documentation fees

 

Purchase option at expiration of lease is taxable unless finance lease previously factored to a third-party.  Insurance is taxable if not separable from lease.  Late payment and documentation fee are inseparable and included in purchase price for sales tax calculation.

 GIL-08-023 (amended)

Purchase options on leases, insurance, late payment, documentation fees

 

Purchase option at expiration of lease is taxable unless finance lease previously factored to a third-party.  Insurance is taxable if not separable from lease.  A late payment fee, if assessed to reflect the vendor’s carrying cost of money, is not subject to sales tax if the charge is separately stated from the unpaid principal balance of the purchase price. A documentation fee is inseparable and included in purchase price for sales tax calculation.

 GIL-08-024 Alteration services
  Alteration services are not taxable if separable from sale of clothing.
 GIL-08-025 Patient tracking / incentive system
  System for tracking patients and incentive program is a non-taxable service.
 GIL-08-026 Medical implants
 

Screws and plates used to treat bone fractures qualify as a medical supplies exemption and may also be exempt if sold to charitable organizations or government entities.

 GIL-08-027

Signage, crating, installation, transportation, city permits, subcontractors

 

Sale of signage is taxable unless it becomes a fixture to real property or title passes prior to installation.  Manufacturer's purchase of crating is exempt wholesale sale, but is a taxable sale to consumer.  Installation is an exempt service.  Transportation is generally exempt except for freight-in charges or if inseparable from sale of signs.  City permits are not taxable if the permit is an obligation of owner.  Repair work of subcontractor is discussed.

 GIL-08-028 Nonresident directors subject to state income tax. 
 

Nonresident corporate directors who attended two-day board of directors' meeting in Colorado incurred state income tax liability based on number of days performing duties in Colorado.

 GIL-08-029 Leased property / Local sales tax
 

Local sales tax does not apply to retailer/lessor who did not have presence in local jurisdiction.

 GIL-08-030 Use tax on fabrication services
 

Use tax does not include labor costs of Taxpayer or third-party fabricators who only provide services, but includes fabrication services of third-parties who also sell raw materials, even though the sale of such goods is in a separate contract.

 GIL-08-031 Copying service
 

Company that provides copies of hospital medical records to third-parties is selling taxable goods.

 GIL-08-032 Medical Items
 

Discussion of exemption for flu vaccine, urine test, and other medically-related items.

 GIL-08-033 Condominium furnishings
 

Developer who purchased and paid tax on furnishings for condominium units that it owned and later sold to fractional interest owners is liable for sales tax on such sale and may be entitled to refund of tax paid to suppliers for such furnishings.  Developer liable for sales tax when it rents on a nightly basis condominiums to third-parties.

 GIL-08-034 Internet Games/Energy drinks/Samples
 

Internet gaming lessons are nontaxable services and nontaxable intangible personal property.  Income earned from sources within Colorado are subject to income tax, but nexus issue not addressed.  Energy drinks are generally nonexempt food supplements.  Distribution of samples is not subject to sales tax, but distributor liable for use tax.

 GIL-08-035 Hospital beds, wheelchairs
  General discussion of exemption for sale of hospital beds and wheelchairs.
 GIL-08-036 Surgical Stapler and forceps
 

Medical supplies exempt from sales and use tax if they leave with the patient but subject to tax if they are used and consumed by the physician.  General nexus discussion.

 

2007

 
 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 07-002 Energy drinks
 

Discussion of energy drinks as exempt food or taxable food supplement.  Drinks that do not qualify as food under the federal food stamp program are not exempt food.

 GIL 07-003 Crime remediation services
  Crime remediation contract is non-taxable service.
 GIL 07-004 Dark and lit fiber / fixtures
 

Discussion of whether dark and lit fiber optic cable used for telecommunication qualifies as taxable telecommunications service and whether cable is a fixture or tangible personal property.

 GIL 07-005 Nexus re: special events
 

Out-of-state retailer which held special events in Colorado may have nexus for sales tax collection.  Retailer's status as a 501(c)(3) does not make its sale exempt.

 GIL 07-006 Gift card stock and bundled software
 

A sale by a distributor of card stock is not an exempt wholesale because distributor is the consumer, not reseller, of card stock.  Software bundled with card stock may be taxable if not separable from sale of card stock.

 GIL 07-007 Discount / Free rental
 

Retailer which provided non-taxable cable service and taxable rental of cable box cannot avoid tax by shifting price to non-taxable service.

 GIL 07-008 Nexus of out-of-state distributor
  Discussion of nexus for out-of-state distributor .
 GIL 07-009 Energy company leases
 

Discussion of nexus of out-of-state company that leases property located in Colorado and whether property is exempt from tax.

 GIL 07-010 Animal management software and property
 

Discussion of taxability of products and services offered by retailer for animal management business.

 GIL 07-011 Drop shipments, wholesale sale documentation
 

Out-of-state supplier not liable for sales or use tax for property delivered to in-state consumer.  Out-of-state retailer may use another state's sales tax license to document wholesale sale exemption.

 GIL 07-012 Nexus / Local sales tax
  Discussion of collection of local sales and use taxes.
 GIL 07-013

Portable trailers, water / electrical / sewer satellite systems, transportation charges, repair parts

 

Discussion of taxability of various portable products supplied for drilling sites, including satellite, sewer, water, electrical systems, repair services and repair parts.

 GIL 07-014 Meal discounts
 

Discussion of sales tax reporting requirements of two retailers which jointly offered discount food and entertainment program.

 GIL 07-015 Wheelchairs, scooters
  Wheelchairs are exempt, but scooters and related accessories are taxable.
 GIL 07-016

Consulting and project management services, credits 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 07-017 Call center services
  Call center services are non-taxable services.
 GIL 07-018 Employment recruitment services
  Employment recruitment services are non-taxable services.
 GIL 07-019 Warranty contracts for leased goods
 

Contracts for service and maintenance of leased goods are not taxable if such contracts are in a separate contract from lease.

 GIL 07-020 Installation / transportation
 

Discussion of various aspects of retailer's sale and installation of product and transportation charges.

 GIL 07-021 Sales tax refunds for completed transactions
 

Buyer purchased taxable property then asked retailer to rebill the purchase to a third-party.  Retailer is entitled to refund of sales tax for completed transactions only if retailer would have granted full refund to buyer even in absence of buyer's request to rebill transaction to a third-party.

 GIL 07-022 Carbon dioxide / tanks
 

Sale of carbon dioxide by supplier to retailer for soda fountain drinks is exempt.  Lease of tanks for shipping carbon dioxide by supplier to retailer may be exempt.

 GIL 07-023 Nexus
  Out-of-state distributor does not have nexus to Colorado.
 GIL 07-024 Electricity / Research and Development
 

Discussion of availability of exemptions for use of electricity, research and development, and statute of limitation for sales tax.

 GIL 07-025 Medical equipment exemption
  External fixators and wires are exempt medical equipment.
 GIL 07-026 Nexus / training seminars
 

Out-of-state retailer which conducts the following activities in state has nexus: training seminars, sales representatives, arrange financing, and delivers product.

 GIL 07-027 Consumer surveys and service quality reports
 

Discussion of criteria for determining whether consumer surveys and service quality reports are non-taxable services or sales of property discussed.

 GIL 07-028

Exempt sales / requirements for documentation

 

Retailer must ask to view the sales tax license, determine that license is active, and that buyer's statement that the purchase is for resale is reasonably consistent with the buyer's business.

 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, not its representatives, is the retailer.  Company ultimately liable for unpaid sales tax.  Representatives do not need sales tax licenses.

 GIL 07-030 Nexus of Application service provider (ASP)
  Nexus discussion of ASP.
 GIL 07-031 Drop shipments
 

Distributor that shipped by common carrier and does not have representatives, stores, or other connection with state does not have nexus.  However, distributor that does not have nexus is, nevertheless, obligated to collect tax if it voluntarily obtained sales tax license.

 GIL 07-032 Drug test kits
 

Kits qualified for exempt medical supply.  Distributor may not have nexus.  Consumer must pay use tax.

 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.

 GIL 07-034 Cholesterol and blood test kits
  Cholesterol and blood testing kits are not taxable.