DOR Taxation web site

Local Taxes

Number Title and Description
GIL 07-012 Nexus / Local sales tax
  Discussion of collection of local sales and use taxes.
 PLR-11-005 Collecting and Reporting of Adjustment Payments
  Company collects and reports sales and use taxes as set forth in the Discussion section.
 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.
 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 in purchased with SNAP or WIC benefits.

 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 sale tax.

 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 point 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. 
 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 a bundled transaction depends on the items in the bundle, the value of the items, and whether the items are separable.
 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-12-016 Affiliate Nexus
  The affiliate nexus rule applies to state-administered localities.
 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.
 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-14-005 Mail Order Sales
  Company is doing business in Colorado and is required to collect sales tax on sales made into Colorado. Company must collect local sales taxes in jurisdictions in which Company shares with the purchasers. If Company ships product into a local jurisdiction in which it does not have a direct or indirect location, then Company should report the sale on its Retailer’s Use Tax Account and collect state use tax and, if the customer is within a special district that levies a use tax, any applicable special district use tax.