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Sales Tax -- Quick Answers
How to Make Address or Account Changes for a Sales Tax Account
Sales tax license mailing address changes or sales tax account closures may be completed through
or with the
Address Change or Business Closure (DR 1102)
. Physical location address changes cannot be done in Revenue Online because the change may impact the tax jurisdiction, sales tax rates and the Department wants to ensure the proper jurisdictions are included for the business location or site.
For physical address location/site changes or closures, send an email request to
and include the 12-digit Colorado Account Number (CAN), final date business was transacted within that jurisdiction or the location address change effective date and the name and contact information of the person requesting the closure or address change.
How Do I Amend a Return?
If you make an overpayment of sales tax due or have a credit resulting from a mistake, error or canceled sale, credit for the amount of overpayment may be taken on a subsequent sales tax form (DR 0100).
If you underreport, a separate form for the same period must be filed. If you are filing an amended return, you are required to mark the Amended Return Box. The amended return must show all tax columns as corrected, not merely the difference(s). The amended return will replace the original return in its entirety. Be sure to use the correct service fee rate for the period you are amending.
If you are no longer engaged in business and you have an overpayment or made a mistake on a prior return, you should apply for a refund using the
Claim for Refund (DR 0137)
I am Buying or Selling a Business. What Do I Need to Do with CDOR?
As the buyer of a business that sells goods, you must
Obtain a sales tax license and
Pay sales tax with the
Retail Sales Tax Return For Occasional Sales (DR 0100A)
on the tangible personal property included in the purchase of the business by the 20th day of the month following the sale.
If you are buying a business, you may request a “Tax Status Letter” from the Department of Revenue. The letter indicates the Department’s current information regarding where the business stands with tax payments and tax delinquencies. Complete a Request for a
"Tax Status Letter" (DR 0096)
. The fee is $7 per tax. The seller of the business may request the letter for the buyer or the buyer may request the letter with a power of attorney from the seller.
If you are selling a business, you must
Pay all business taxes due at the time of the sale.
Pay sales tax collected on the sale of tangible property.
Do You Offer Sales Tax Classes?
Yes. We offer online and in-person classes. Visit our
webpage for more information.
I Need Information on Deductions and Exemptions.
Sales Tax | File, Deductions and Exemptions
webpage for more information on some of the deductions and exemptions that are available.
Where Can I Find Information Delivery and Freight Charges?
Delivery and freight charges are generally not taxable so long as the charges are both separable from the purchase and separately stated on the customer invoice. The charges are considered separable from the purchase if they are for service performed after the property is offered for sale and the seller allows the buyer to use the seller's transportation service or to use alternative transportation service, including but not limited to the buyer picking up or taking the property from the seller's location.
Taxable delivery and freight charges related to tax exempt sales (tax exempt item, sale to tax exempt charity, shipping out of state, etc.) are not subject to sales tax because the delivery charges are considered part of the exempt sales.
Can I File Online with Revenue Online?
First set up a Login ID and Password with Revenue Online. You’ll then be able to file your return through
. When you get into your account with the Login ID and Password you create, the system knows the sales tax rates for your business and will help you accurately complete your sales tax return.
Internet Purchases – No Sales Tax Collected
Shoppers who make purchases online should remember to check receipts for sales tax charges and save those receipts where tax was not paid so they can pay consumer use tax.
Consumer Use Tax Quick Answers Webpage
for more information.
Are There Taxes on Labor Charges?
Generally, labor and services are not subject to sales tax. Colorado taxes retail sales of tangible personal property and select services including telephone services, rooms and accommodations, food for immediate consumption, and certain utility services. Labor and service charges that are separable from the property being sold and that are separately stated on an invoice are not subject to state sales tax. If the items of tangible property and the labor and service charges are lumped into one purchase price, the entire transaction is subject to sales tax.
How Do I Get a Sales Tax License?
Colorado Business Express
or download the
CR 0100 application
. You may also want to download the
Points of Compliance Tool Kit
. Note: If you are an out-of-state business, you must use the CR 0100 application.
For more information see the
Sales Tax Basics
Local Government Taxes
The Colorado Department of Revenue, in addition to collecting state sales and use tax, collects sales tax on behalf of several cities, counties and special districts. These jurisdictions are referred to as “state collected.” All Colorado counties that impose a sales tax are state collected, except Denver County and Broomfield County.
Cities which have enacted a “home-rule” charter, and which have elected to administer their own local sales and use taxes are referred to as “self-collected”. Self-collected jurisdictions have the right to establish their own regulations regarding those goods and services upon which to impose their local sales and use taxes. Self-collected cities must be contacted directly for that information.
State Collected County and City Taxes
County and city sales taxes collected by the state are administered in the same manner as state sales tax. If the sale is subject to state sales tax, it is also subject to state-collected local sales tax. Exceptions to this guideline as well as local sales tax rates are listed in the
DR 1002, Colorado Sales/Use Tax Rates
. For more information on guidelines for local sales tax, refer to
FYI Sales 62: Guidelines for Determining When to Collect State-Collected Local Sales Tax
Self-Collected Home-Rule Cities
Home-rule cities that collect their own local use tax may have different guidelines and must be contacted directly. A list of home-rule cities and contact information can be found in DR 1002.
Verify Sales Tax Rates
Use Revenue Online to view current sales tax rates. Through Revenue Online you can also:
View sales tax rates by specific city or county.
View sales tax rates applicable to your specific business location(s).
View amount of tax calculated by purchase amounts from $0.01 through $100 and
search local sales tax rates by a specific address. Sales tax rates are also available in the form
DR 1002, Colorado Sales/Use Tax Rates
. This publication is updated January 1 and July 1 every year.
No Tax—Zero Returns
You must file a sales tax return every period, even if no tax has been collected or no tax is due. Failure to file will result in estimated tax bills. If you do not file the required returns, the department will close your account and your sales tax license will no longer be valid. Zero returns can be filed online. Any license account, exclusive of wholesale accounts, that shows no sales tax remitted for any period of 12 consecutive months will be closed automatically by the department. Such inactivity is considered evidence that the licensee is not in the business of selling at retail.
If there is no tax to report, you can file a zero return through our
service. When filing a zero return through Revenue Online you will first need to request a Letter ID number to be mailed to the address we have on your account. Then use the Letter ID number in the sign up process. If you have a recent return that has an amount (not zero) in the Gross Sales and service line, you may use that amount instead of a Letter ID number.
If you cannot use Revenue Online, file the information for the zero return on the
"Retail Sales Tax Return" (DR 0100)
I Received a Nonfiler Notice
To resolve the notice, you can either:
File any missing tax return(s), even if you do not owe any money. Log onto
to file a return, including any zero returns, or submit a DR 0100 form. OR,
Close your sales tax license account with CDOR. Follow the instructions on the letter to close your business.
If you have already filed the return(s) for this period, log into your Revenue Online account to check the status of your return.
If the Revenue Online records show that your return has NOT been received by the CDOR, please send copies of the return(s) and any canceled check(s) and/or EFT confirmation(s) to the Department or by filing a protest and uploading attachments on
If the Revenue Online records show that your return HAS been received by the CDOR, please disregard this notification.
Overpaid Sales Tax - Refund
If you were overcharged for sales or use tax on a purchase or were charged sales or use tax on an item that is exempt from tax, you should ask the retailer to refund the tax paid in error. If they do not give you a refund, you can apply to the Department of Revenue for the refund by completing and filing, the
Claim for Refund of Tax Paid to Vendors (DR 0137B)
. This form can be used for state sales tax and city, county or special district sales taxes collected by the state. You must attach a copy of your receipt or invoice as proof of the tax paid in error.
If you overpaid sales or use tax on a tax return you filed, you may deduct the overpayment on your next return. If you cannot deduct the overpayment on your next tax return, use the
Claim for Refund (DR 0137)
, for previously remitted directly to the Department of Revenue.
For more detailed instructions, see publication
FYI Sales 90, Sales and Use Tax Refund Requirements
To make a claim for sales taxes paid in Home Rule cities, you must contact the city to obtain refund information. Contact telephone numbers for Home Rule cities are listed in the
Colorado Sales/Use Tax Rates (DR 1002)
Point of Purchase/Delivery
A taxable sale occurs where there is a transfer of title or possession. For many sales, transfers of title and possession occur at the same point in time and place. The most common example is where the purchaser pays for and takes merchandise with them in an over-the-counter transaction. Title and possession were transferred at the store, and the sales tax is due at the time of sale at the rate in effect for the store's location.
If the merchandise is paid for at the store, but the seller as a condition of the sale is required to deliver the merchandise to another destination, tax is due for each jurisdiction that is in common between the seller and the delivery point. The tax rate charged will be the tax due at the point of destination. In other words, delivery by the seller was a condition of the sale, meaning that title did not pass until the property was delivered.
Whether a mail order sale is subject to sales tax depends upon whether the seller is doing business in Colorado and where title and possession pass.
Local city and county sales taxes are not collected when the retailer or his agent delivers tangible personal property, via the retailer’s vehicle, to a destination outside the boundaries of the vendor’s local taxing jurisdiction(s) or to a common carrier for delivery outside the boundaries of the vendor’s local taxing area(s). Delivery of the tangible personal property into another local taxing area does not require the vendor to collect the local sales taxes of the delivery area if the vendor does not have a business presence there. However, use taxes are due for deliveries made into special districts that impose a use tax. The use tax should be reported on the
Retailers Use Tax Return (DR 0173)
Sales/Use Tax Rates (DR 1002)
to determine which special districts have a use tax.
How Do I Look Up Tax Rates?
The Colorado Department of Revenue has a webpage with resources for businesses to accurately determine their sales tax rates. The
Sales and Use Tax Lookup
page provides reference options ranging from a print out of all tax rates in Colorado
, a spreadsheet that combines the rates in the DR 1002 with Location Filing (jurisdiction) Codes (
) needed for tax return filing, and links to “Certified Address Database” providers. Visit the
Sales and Use Tax Rates Lookup
page to take advantage of these services and to ensure you have correct and current tax rates.
The Department of Revenue does not collect tax for home-rule cities and counties. If you have a business inside a home-rule area, please contact that city/county directly for their sales tax requirements. To determine if you are located in a home-rule area and for contact information please see the publication
Colorado Sales/Use Tax Rates (DR 1002)
Verify Sales Tax License/Tax Exempt Certificate
The Department of Revenue offers a free service for those wanting to verify a Colorado sales tax license or sales tax exemption certificate for a specific business or organization. You can determine whether the license of exemption certificate is valid through
Under "Additional Services", choose Verify a Sales Tax License. You must know the sales tax account number or exemption certificate number as assigned by the Department of Revenue. You are not required to be logged in to use this service.