Exemptions
| Number | Title and Description |
| 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 07-011 | 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 07-015 | Wheelchairs, Scooters |
| Wheelchairs are exempt, but scooters and related accessories are taxable. | |
| 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. Important - This GIL has been superseded by PLR-10-001. | |
| 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 07-028 | 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 07-032 | Drug Test Kits |
| Kits qualified for exempt medical supply. Distributor may not have nexus. Consumer must pay use tax. | |
| GIL 07-034 | Cholesterol and Blood Test Kits |
| Cholesterol and blood testing kits are not taxable. | |
| 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 08-006 |
Cosmetic Medical Equipment / Therapeutic Devices |
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Cosmetic products that are primarily for cosmetic purposes are not exempt therapeutic devices even though they are provisioned only by medical practitioners. This GIL has been amended. See GIL-08-006 amended.
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Cosmetic Medical Equipment / Therapeutic Devices |
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| Collagen gel used for cosmetic purposes is exempt if furnished by a doctor as part of professional services to a patient, but not exempt as a therapeutic or prosthetic device. | |
| 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-08-026 | Medical Implants |
| Discussion of screws and plates used for bone fractures as medical supplies exemption and exempt sales to charitable organizations and to 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 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 obligation of owner. Repair work of subcontractor is discussed. | |
| GIL-08-032 | Medical Items |
| Discussion of exemption for flu vaccine, urine test, and other medically-related items. | |
| 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. | |
| 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-09-013 | Medical Supplies |
| General discussion of exemptions for medical supplies furnished by a doctor or sold to a charitable entity | |
| 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-09-022 | Medical Supplies |
| General discussion of exemptions for custom disposable instruments for patients undergoing joint replacement surgery. | |
| PLR-10-001 | Carbon Dioxide / Nitrogen for Beverages / Rental Charges for Gas Cylinders and Tanks. |
| Sale of carbon dioxide for beverage is exempt from tax, but sale of nitrogen as a propellant of beverage is taxable. Rental charges for gas cylinders and tanks used by retailer are not exempt as shipping containers. | |
| PLR-10-002 | Transportation Services |
| Charges for transportation services are presumed exempt, but are taxable if purchaser must use the service, seller does not separately state the charge for services, or the service is inseparable from the sale of taxable good. | |
| PLR-10-004 | Medical Device / Service v. Sale of TPP |
| Sale of catheter is not an exempt therapeutic 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 an 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 |
| Acceptance testing by buyer under Colorado's Uniform Commercial Code is part of sales transaction and not a separate taxable use. | |
| GIL-11-005 | Insulin Infusion Pumps |
| An infusion pump and related disposable supplies are exempt as an "insulin measuring and injecting device" because the pump measures an insulin dosage and injects the insulin. | |
| 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. | |
| PLR-11-009 | Photovoltaic Energy Systems |
| The purchase and lease of 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. | |
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Electronically Delivered Newspapers and Magazines |
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Monthly newspapers and magazines delivered electronically are subject to sales tax. |
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| PLR-12-001 | Drug-Device Combination Products |
| 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 service 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-12-004 | 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. | |
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Welding Gases and Tools |
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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 a bundled transaction depends on the items in the bundle, the value of the items, and whether the items are separable. | |
| 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 land. 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. | |
| 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-12-017 | 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-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. | |
| 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-13-005 | 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. |