12101 East Second Avenue, Suite 201A
Aurora, CO 80011
Phone: (303) 364-0400 Fax: (303) 364-0404
SALES TAX & USE TAX
and Use Tax Services
What is Use Tax?
Over time, municipalities, as well as states, realized that since they could not require out-of-area vendors to apply for sales tax licenses, they were unable to collect tax on certain sales. The "Use Tax" solves this problem. Use Tax laws generally place the burden of tax paying on the buyer. If goods or services are purchased that are taxable within the jurisdiction of a business, that business is required by law to pay the combined sales tax rate for those taxable items. If the vendor has failed to collect the tax, the business is required to file a use tax return (which is commonly contained within the sales tax return) for the state, county and city in order to remit the tax. Ignorance to these rules can result in the taxing authorities assessing the tax after-the-fact, including failure to file penalties and interest on the balance. Many cities require businesses to file a return even if no tax is due. Business owners would be well advised to research the regulations or contact a tax advisor.
Sales Tax Rate/Codes information:
This publication summarizes Sales and Use Tax Rates for most cities and counties in the state. It is a short, but comprehensive, guide to sales and use tax in the state.
Colorado Municipalities Tax Rates
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