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Colorado: T’is the Season for Sales Tax

  • Oct 30, 2013 | Gail Cole

 Selling Christmas trees in Colorado? Remember to collect sales tax.

Once the nation’s Halloween decorations are back in their boxes and kids’ candy sacks contain only the least favorite candies, we know the winter holiday season has begun. The holidays and winter mean a plethora of seasonal businesses will spring up from Los Angeles to Bar Harbor. In addition to bringing a festive air to communities, these businesses bring sales tax revenue. Or they should.

Seasonal businesses

The Colorado Department of Revenue would like Colorado seasonal businesses to remember that they are required to obtain a sales tax license no matter how long (or short) the duration of their business.

Selling decorative gourds from a farm stand? Christmas trees from a lot? Mugs or jewelry from a stand in a holiday gift bazaar? Anyone who makes sales in Colorado is required to collect Colorado sales tax. Ski areas and winter gear rental shops are also required to register with the state and collect and remit sales tax.

Vacation rentals

People travel during the holidays to see friends and family and they travel during the winter to experience the snow or escape from it. Travel usually requires lodging, and the Colorado Department of Revenue reminds that sales tax is often owed on the rental of condominiums and vacation homes.

When homes, apartments and condominiums are rented for fewer than 30 days, sales tax is owed to state. In addition to sales tax, many localities in Colorado impose local taxes, such as a county lodging tax. These taxes may also be owed on vacation rentals.

Don’t let your holidays be ruined by a visit from a Colorado taxman.

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photo credit: Big Grey Mare via photopin cc

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.