Sales Tax -- Exemptions
Exemptions must be itemized on the schedule included with the Retail Sales Tax Return. Exemptions taken on the "Other" line must include an explanation. Note that the exemptions may be specific to state, county, city or special district. Refer to the Colorado Sales/Use Tax Rates (DR 1002) for further information or the View Local Sales Tax Rates portion of Revenue Online.
When you file through the Revenue Online service, you will be prompted to provide the exemptions information and it will become part of the e-filed return. If the return is filed on paper, the totals from each of the columns on the Exemptions schedule must be transferred /reported on the Retail Sales Tax Return and the Exemptions schedule must be submitted with the paper sales tax return.
Additional information about some of the more common exemptions