Colorado: T’is the Season for Sales Tax
- Sales Tax News
- Oct 30, 2013 | Gail Cole
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.
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.
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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