About Sales and Use Tax

Goods:
Sales taxes are imposed upon the selling transaction of most goods in the State of Colorado. Goods exempt by law include, but are not limited to, prescription drugs, insulin and insulin supplies, and prosthetic and medical supplies prescribed by a doctor.

• Deliveries of Goods:  Local sales tax and RTD/Special Districts taxes are NOT collected when the retailer or his agent delivers the sold goods, via the retailer's company vehicle, to a location outside the boundaries of the vendor's local taxing jurisdiction or to a common carrier for delivery outside the boundaries of the vendor's local taxing jurisdiction. Delivery of the sold goods into another taxing jurisdiction does NOT require the vendor to collect the local sales taxes of the delivery location if the vendor does not have a business presence there. (A business presence includes an office, distributing house, salesroom, warehouse or other place of business, or if the business leases vehicles that will be used in Colorado.) Records detailing the delivery location must be maintained by the vendor. Rule of Thumb: vendors should charge what they have in common with their purchaser.
  
• Mobile Vendors: Retailers who carry their inventory with them and make sales from that inventory directly to customers are classified as mobile vendors, and all local taxes must be collected.
  
• Out of State Retailers:  If you file Colorado state sales/use tax returns you are not required to collect sales taxes for any state-collected city or county, provided the retailer has no place of business in such state-collected city or county.
  
• Building Materials: Local sales tax is not due on building materials if the purchaser presents a building permit or other documentation acceptable to the local jurisdiction where the materials are purchased showing that a local use tax has been paid or is required to be paid to another local entity.
  
• Services: Most services are not subject to sales tax. Exceptions to this guideline include: rooms and accommodations; catering; gas and electric service; steam; and telephone and telegraph services. Freight delivery and transportation charges are taxable to the point that title of delivered goods passes from the seller. Dealer preparation and handling charges for motor vehicles are taxable. Services must be itemized separately on the service provider's bill to show that they are nontaxable.

Sales Tax in Adams County:
Adams County uses sales tax revenue to fund specific capital projects. Currently, there are two capital projects being funded by sales tax revenue. These projects are:

• Transportation Enhancement:  Roads, bridges and traffic related infrastructure are some of the largest concerns of the citizens of Adams County.  On November 6, 2001, county citizens voted in favor of extending a sales tax of one-half  of one percent (0.5%) to finance the roads, bridges and other capital improvements needed to improve roadway infrastructure in the county.
  
• Open Space: Preserving park space and wildlife sanctuaries is another priority of county citizens. On November 2, 1999, county citizens voted in favor of a temporary sales tax of one-fifth of one percent (0.2%) for the purpose of preserving open space and creating and maintaining parks and recreation facilities.

Use Tax:
When sales tax has not been charged, use tax becomes owed by the purchaser when the purchased item is actually used or made available for use after delivery is completed, as well as when keeping, storing, withdrawing from storage, moving, installing, or performing any other act by which control of the article is assumed by the purchaser.

Use Tax in Adams County:
Adams County does NOT impose a Use Tax.

Licensing:
Other than Liquor Licenses, Adams County does NOT have a separate sales tax license. Since all collection and administration of the sales tax is the responsibility of the Colorado State Department of Revenue, having a state sales tax license is sufficient for operating a business within Adams County.

Transactions Subject to the Sales Tax:
The transaction subject to the sales tax shall be as set forth below and as required by Colorado state law.

The tangible personal property and services taxable hereunder shall be the same as the tangible personal property and services taxable pursuant to section 39-26-104, C.R.S., except as provided herein, and shall be subject to the same exemptions as those specified in part 7 of article 26 of title 39.

Exemptions From Sales Tax:
Certain goods are exempt from the imposition of sales tax. These exemptions include:

• Food for home consumption
• Machinery and machine tools (as defined on form DR 1191)
• Gas, electricity, etc., for residential use
• Occasional sales by charitable organizations
• Farm equipment
• Pesticides
• Food sold through vending machines
• Low-emitting vehicles
• Services, if billed to the customer as a separate item from goods

Cities Within Adams County:
Nine cities are incorporated within the boundaries of Adams County.  Seven of these cities are home rule, which means they have their own guidelines in regards to sales tax.  They also collect and administer their sales tax program.  They must be contacted directly for licensing and guidelines.  The nine cities are listed below. Those marked with an asterisk are home rule and have a contact address and phone number listed.

 Sales Tax Rates:

*Northglenn Sales Tax will be 4.00% excluding food for home consumption, which will remain at 3.50%

Note: Box Elder Creek runs along the eastside of Denver International Airport To find out in which jurisdiction your address is located, please call 303.654.6300 and we can confirm your tax rate.

Adams County Sales Tax:

**Effective January 1, 2007, the Adams County sales tax rate increased from 0.7% to 0.75%.

On November 2, 2004, voters approved a ballot issue to increase the existing Open Space sales tax from 0.2% to 0.25% and extend the tax until December 31, 2026.  This increase and extension is effective January 1, 2007.

The existing 0.5% Transportation sales tax remains in effect until December 31, 2008.

On November 7, 2006, voters approved an extension of the 0.5% sales tax from January 1, 2009 until December 31, 2028.  The extended 0.5% sales tax will be split 0.30% for approved capital projects and 0.20% for transportation projects starting January 1, 2009.

Additional Questions

About the Football Stadium sales tax of 0.1%:  The Metropolitan Football Stadium District is comprised of the following six counties - Adams, Boulder, Douglas, Arapahoe, Denver and Jefferson.  On November 3, 1998, the Denver metro area taxpayers voted 57% in favor of the stadium tax proposal.

Under the Stadium Act, the tax would expire on or before 2012 to pay off the bonds issued by the Stadium District.

For more information, please visit the MFSD website at www.doradographics.com/MFSFD/history.htm.

About the Cultural Facilities sales tax of 0.1%:  In 1988, voters in the Denver metro area created the Scientific & Cultural Facilities District (SCFD) to provide a consistent source of unrestricted funding to scientific and cultural organizations.  The district is comprised of the following seven counties - Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas and Jefferson.

Voters reaffirmed their support of the SCFD tax in 1994, and most recently, voters extended their support of culture by approving the SCFD legislation in November 2004 with 65% voter approval. SCFD will now sunset (or expire) on June 30, 2018.

Effective July 1, 2006, the SCFD tax of 0.1% will apply to all areas within Adams County boundaries.

For more information, please visit the SCFD website at www.scfd.org/about.shtml.

Contacting Adams County: You can call 303.654.6300 anytime between the hours of 8 a.m.and 4:30 p.m. or you may visit the Finance Department on the 2nd floor of the Administration Building located at 450 S. 4th, Brighton.

There are many unique circumstances to a business' tax situation. At times, we may not have the resources available to answer your question. We may have to refer you to the Colorado State Department of Revenue. You may contact their Taxpayer Service Division at 303.238.7378 any time between the hours of 8 a.m. and 4:30 p.m.  You may also view and/or download forms and information at the following:  Colorado Department of Revenue - Sales Tax.

Two publications of interest are: DRP 0099 "Sales and Use Tax General Information and Reference Guide" and DRP 1002 "Colorado Sales/Use Tax Rates."  You will also find other useful downloadable information such as "Contractors and Retailer-Contractors" and "Small Home Businesses."