Where Do Colorado Businesses Go To File A Consumer Use Tax Return?

By Alan Smith posted 12-07-2017 02:08 PM

  

Where Do Colorado Businesses Go To File A Consumer Use Tax Return?

 

Colorado Businesses are to file a Consumer Use Return at least annually and use tax is heavily audited by the CO DOR and home-rule cities in Colorado.

BUT... but their Colorado Department of RevenueOnline account doesn't show filing the Consumer Use Tax Return as a selection.  

However, once on the Revenue Online page, don't login!  Instead, click the "File a Return" option and then select "Consumer Use Tax".

Consumer Use Tax For Businesses and other legal entities:
The due date for businesses and other legal entities that owe consumer use tax depends upon the amount of use tax owed. If the business or other legal entity accrues less than $300 of total consumer use tax over the course of the year, the business or other legal entity must file an annual use tax return, due January 20th of the following year, to report and pay the tax due. If the cumulative tax due at the end of any month is in excess of $300, the business or legal entity must file a return by the 20th day of the following month. The business or other legal entity can either file electronically at Colorado.gov/RevenueOnline or by completing and submitting a Consumer Use Tax Return (DR 0252).  Source: Colorado General FYI 10: Consumer Use Tax

There are also over 70 home-rule jurisdictions that administer and audit for their own sales and use taxes. These include most of the larger cities in Colorado such as Arvada, Aurora, Centennial, Colorado Springs, Denver, Fort Collins, Lakewood, Pueblo, Thornton and Westminster and many of the smaller cities and towns. Home-rule cities may have a combined sales and use tax return or the returns may be separate. If the returns are separate, be sure to file a consumer use tax return too.  If your company doesn't make retail sales, be sure to file a combined or separate return as required by your home-rule city. If you don't file the return, the statute of limitations clock will never start.  Some cities can, and do, go back to day one of business!

The State collects sales tax for statutory counties and local municipalities, but does not collect use tax for them.  Remit use tax directly to them as applicable.

Cautions:

  • Auditors examine expense purchases for a sample period and project the error rate across the audit period.  Each missing receipt and untaxed or undertaxed purchase can be amplified and count against you for multiple years.
  • Credit Card Statements are also reviewed. No receipt = taxable purchase for the audit assessment.
  • Fixed Assets: You'll be required to prove you paid sales or use tax on all fixed asset or tax interest and penalties will be assessed.
  • Bringing Company Equipment into another city can trigger a use tax obligation if there is a rate disparity or if no comparable city sales tax was paid.
  • Groceries/food purchased for business use is not exempt.

For More Tax Tips visit: www.salestaxcolorado.com/taxtips.htm


Provided Courtesy of:
Alan Smith
Sales Tax Colorado, LLC
303-289-6100
asmith@salestaxcolorado.com


Disclaimer:
These tips are intended to provide general information only and are not to be considered as a substitute for professional advice.

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