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The fact that an organization performs some charity work or funds (all or part of) a charitable group does not automatically qualify that organization for the Colorado sales/use tax exemption. Organizations that are exempt from federal income tax under 501(c)(3) will generally be approved for a sales tax certificate of exemption in Colorado.
If the Colorado Department of Revenue determines that an organization qualifies, the organization will receive a “Certificate of Exemption” that authorizes it to purchase items and services without paying state sales tax and state-administered local sales taxes when these items and services are used to conduct the organization’s regular charitable function.
This exemption does not apply to locally-collected sales tax levied by home-rule cities. Home-rule jurisdictions make their own tax regulations and must be contacted directly for information. For a list of “home-rule” cities please see the Sales/Use Tax Rates (DR 1002) guide.