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Colorado: Less Confusion in 2014


 Colorado: new law should reduce confusion in 2014.

The Colorado Department of Revenue has announced that, effective January 1, 2014, the sales and use tax base in the Regional Transportation District (RTD) and the Scientific and Cultural Facilities District (CD)—both in the Denver metropolitan area—will be the same as the Colorado state sales and use tax base.

Um, what?

As if anticipating that question, the DOR notice clarifies:

“That means that the state, RTD and CD exemptions on tangible personal property will be exactly the same.”

Currently, certain items that are subject to the state sales and use tax are exempt from the RTD and CD sales and use tax. The reverse is also true. Come 2014, an exempt item will be exempt from RTD, CD and state sales and use tax. Taxable items will be subject to sales tax everywhere, at the applicable local rate.

The change is due to the passage of House Bill 2013-1272, “Concerning the modification of a special district’s sales and use tax base to make it the same as the state’s sales and use tax base.” It is intended to reduce confusion and lessen the administrative burden for vendors.

Cigarettes

The notice also points out that, under HB 2013-1272, "cigarette sales are subject to Colorado’s state sales tax and subject to RTD/CD taxes." That change takes effect January 1, 2014, as well.

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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.