Use Tax Notice and Reporting Requirements

Colorado adopted a Use Tax in 1937, which requires individuals and businesses to pay use tax on tangible personal property purchased from out-of-state vendors if the item is used, stored, or consumed in Colorado. Consumer use tax must be paid by individuals and businesses for tangible personal property used in Colorado for personal or business purposes (not to be resold) when tax was not paid at the time of purchase. If you have purchased an item without paying sales tax or received an Annual Purchase Summary from an online retailer visit Information for Consumers for more information.

How to Report and Pay Consumer Use Tax for Businesses

The due date for businesses and other legal entities that owe consumer use tax depends upon the amount of use tax owed. If the business or other legal entity accrues less than $300 of total consumer use tax over the course of a year, the business or other legal entity must file an annual use tax return, due January 20th of the following year, to report and pay the tax due. If the cumulative tax due at the end of any month is in excess of $300, the business or legal entity must file a return by the 20th day of the following month. The business or legal entity can either file electronically at or by completing and submitting a Consumer Use Tax Return.
For more information, call our Taxpayer Helpline at (303) 238-7378.