Colorado’s Unique Sales Tax Could Cut off Consumers

An excise tax could drive consumers to buy online or from other states. An accompanying sales tax holiday could be used to keep costs the same for consumers. CPW would lose its enterprise exemption status unless the excise tax was designed to generate less than $13 million (0.8% or less).

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If a taxpayer purchases taxable property over the internet from an out-of-state retailer that does not collect Colorado tax, the retailer is required to: Provide a Transactional Notice at the time of sale to Colorado Customers of their responsibility to pay consumer use tax directly to the Department.

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The Colorado use tax is a special excise tax assessed on property purchased for use in Colorado in a jurisdiction where a lower (or no) sales tax was collected on the purchase.. The Colorado use tax should be paid for items bought tax-free over the internet, bought while traveling, or transported into Colorado from a state with a lower sales tax rate.

CONSUMER USE TAX RETURN AND INSTRUCTIONS DR 0252 (02/17/12) Web. You purchased items without paying sales tax in Colorado or out of Colorado. Your items purchased were used, stored, or consumed in Colorado.. Cut here and send only the coupon below.

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