Use Tax | File

Retailer’s Use Tax

Who Must File

Colorado generally does not impose a state use tax on services. Some Colorado home-rule cities (that collect their own local sales tax) charge a sales tax on certain services. Contact those cities directly for further information. A list of home-rule cities can be found in the DR 1002.

What if no tax is due for a filing period?

A tax return must be filed even if the tax due is zero. When no return is filed, the department considers that to be a "nonfiler" situation. When you don't file a return, you will receive nonfiler billing notices by mail.

Out-of-State Businesses

The Colorado use tax (same rate as state sales tax) should be collected by vendors who have no business location in the state but sell products in Colorado. The special district taxes for the Denver area Regional Transportation District (RTD), Cultural District (CD), and any Rural Transportation Authority (RTA) district taxes, as well as local taxes must also be collected, if applicable.

Businesses Within Colorado Delivering Goods

If you deliver into a special district that imposes a use tax, those special district taxes must be collected.
You will file the special district use taxes on the Retailer’s Use Tax Return (DR 0173). You will find tax rates in the publication Colorado Sales/Use Tax Rates (DR 1002).
The first time you file using the DR 0173, the Department of Revenue will set up a Retailer’s Use Tax Account for you.
After the first filing, you may use Revenue Online to file all future retailer’s use tax.
It is recommended that you consult with a tax examiner regarding retailer’s use tax collection and filing in special districts. You may contact a tax examiner through our Call Center at 303-238-7378.

If there is use tax in a special district where you deliver -- you are required to collect that tax.

Filing Frequency

Filing frequency is determined by the amount of use tax collected monthly.

$15 or less per month: use tax returns may be filed annually
Under $300 per month: use tax returns may be filed quarterly
$300 or more per month: use tax returns must be filed monthly
Businesses that pay more than $75,000 per year in state use tax must pay by Electronic Funds Transfer (EFT).

Due Dates

If the 20th day falls on a weekend or holiday, the due date is the next business day. If there are no taxable sales during a filing period, a zero (0) return must be filed.

Annual: January 20
EFT: 20th day of month following reporting period
Monthly: 20th day of month following reporting period
Quarterly:

January- March: due April 20

April- June: due July 20

July- September: due October 20

October - December: due January 20

Failure to file a required return will result in a nonfiler notice that is mailed approximately one month after the due date of the return, which is followed a month later by an estimated bill. The collection process will continue on this bill until the return is filed or the account is closed.

E-File Options

Revenue Online

You may use the Colorado Department of Revenue’s free e-file and account service Revenue Online to file your retailer’s use tax. You must be logged in to your Revenue Online account to file a return. See Quick Answers, Sign up for Revenue Online account access. After you create your own User ID and Password for the income tax account, you may file a return through Revenue Online.

Once you are inside your Department of Revenue tax account in Revenue Online, click on the specific tax account you want to view (USR for retailer’s use). You will see all of the filing periods for that tax type, including links to returns you have already filed and links to returns that should be filed.

Instructions and Forms

Retailer’s Use Tax Return (DR 0173)

Instructions for Substitute FORM Developers

Substitute Form Developers Web Site (Only DR 0173 available)

Instructions for Tax SOFTWARE Developers

No specifications for developers on consumer use tax.

Amending

See form instructions. You may amend a return in Revenue Online.

Disagree with a Billing Notice

Taxpayers who disagree with the balance due notice have the right to protest the amount due. The protest must be filed within 30 days from the date of the notice. Refer to your correspondence for any specific documentation required.

Protest Rights

File a Protest

On the Web through Revenue Online, click on the File a Protest link. It is not necessary to Login to Revenue Online to file a protest. Supporting documentation may also be attached to the protest in Revenue Online.
By mail:

Colorado Department of Revenue

Protest Section #102

PO BOX 17087

Denver, CO 80217-0087

Consumer Use Tax

Who Must File

Consumer use tax must be paid by Colorado residents and businesses on purchases (items used for personal or business purposes, not resold) that did not include Colorado sales tax, such as those made over the Internet, by mail order, or by telephone. Consumer use tax is payable to the state by individuals and businesses when sales tax is due but has not been collected. Individuals and businesses have always been required to pay sales or use tax on taxable purchases from out-of-state vendors if the item is sold, leased, or delivered in Colorado for use, storage, distribution, or consumption in the state.

Colorado state use tax is the same rate as the sales tax. With proof of payment, sales tax paid to another state may be credited against state use tax due in Colorado for a particular item. Use tax is also collected by some local governments and special districts.

Filing Frequency

See Due Dates.

Due Dates

Individual Consumer Use Tax can be paid on an annual basis, similar to how you file your individual income tax return. Any merchandise purchased January to December that is subject to consumer use tax is due by April 15th the following year.

Business Consumer Use Tax can be paid annually if your total use tax owed is less than $300 per year, due on January 20 of the following year. If total use tax owed exceeds $300 at the end of any month, the return is due by the 20th of the following month.

E-File Options

Revenue Online

You may use the Colorado Department of Revenue’s free e-file and account service Revenue Online to file your consumer use tax. You do not need to login to Revenue Online to File a Return. While you can file the return online, the Consumer Use Tax Account cannot be viewed in Revenue Online.

File the tax and make the payment through Revenue Online.

Revenue Online will let you know which local use taxes are required based on your address and will give you the appropriate tax rates as you go through the return filing.

Instructions and Forms

If filing by paper, the state and special district use taxes are filed using the Consumer Use Tax Return (DR 0252). The Rural Transportation Authority use tax is filed with the RTA Consumer Use Tax Return (DR 0251). For more information about state and special district taxes please see the Colorado Sales/Use Tax Rates (DR 1002).

Instructions for Substitute FORM Developers

Substitute Form Developers Web Site (Only DR 0173 available)

Instructions for Tax SOFTWARE Developers

No specifications for developers on consumer use tax.

Amending

See form instructions. You must use the paper consumer use tax return to amend an original return.

Disagree with a Billing Notice

Protest Rights

File a Protest

On the Web through Revenue Online, click on the File a Protest link. It is not necessary to Login to Revenue Online to file a protest. Supporting documentation may also be attached to the protest in Revenue Online.
By mail:

Colorado Department of Revenue

Protest Section #102

PO BOX 17087

Denver, CO 80217-0087