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Filing Sales Tax in Colorado – Get It Right

  • Sep 18, 2015 | Gail Cole

 Simplify sales tax compliance with automated sales tax software.

In the spirit of a glass half full, let’s consider three of the most common errors that can occur when filing a Colorado sales tax return (DR 0100). And, more optimistically, how to avoid them.

Use proper tax rates

An incorrect sales tax rate ruins the form and pretty much everyone’s day—especially yours. Once you know all applicable rates, be sure to list them in the proper column (County/MTS, City/LID, Special Districts and State).

Accurate sales tax rates are available through this free sales tax rate map

Get consumer use tax right

A sales tax license in Colorado provides vendors a sales tax exemption on items purchased for resale. Goods purchased tax-free for resale but removed from inventory for personal or business use must be reported on Line 10 of Form DR 0100.

To report tax on items you purchased without paying sales tax and then used, stored, or consumed in Colorado, use one of the following forms:

  • Consumer Use Tax Return (DR 0252)
  • RTA Consumer Use Tax Return (DR 0251)

Automate consumer use tax remittance.

Multiple locations mean multiple forms

If you sell in more than one location in Colorado, you need to file more than one form. In fact, you need one form for each location.

Learn how sales tax software (SaaS) can save you time, money and effort.

Check out the Colorado Department of Revenue for more common errors.

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.