Tax Exemption Qualifications

Charities & Non-Profits

Generally, an organization qualifies for sales tax-exempt status if it is organized and operated exclusively for one of the following purposes:

  • It is a religious, charitable, scientific, testing for public safety, literary or educational organization.
  • The organization fosters national or international amateur sports competition; as long as, no part of its activities involve providing athletic facilities or equipment.
  • The organization prevents cruelty to children or animals.

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. To find the identification number of a Colorado charitable organization, use the Charity Lookup Tool or visit the Colorado Secretary of State's Office website.

Government Agencies & Offices

Colorado statute exempts from state and state-collected sales tax all sales to the United States government and the state of Colorado, its departments and institutions, and its political subdivisions (county and local governments, school districts and special districts) in their governmental capacities only. [§39-26-704.1, C.R.S.] For more information, review FYI Sales 63.

Local Sales Tax

Self-collecting jurisdictions may have different rules regarding government tax exemptions and should be contacted individually. More information can be found on the Sales & Use Tax Rates Lookup web page.