|Colorado sales tax is imposed on sales and purchases of tangible personal property at retail. (C. R. S § 39-26-104)
Colorado Exempt Entities: United States government, state of Colorado, its departments and institutions, and the political subdivisions, certain charitable organizations.
Colorado Exempt Items: Cigarettes, internet access, precious metal bullion and coins; sales of food purchased with food stamps, sales of food purchased with funds provided by the special supplemental food program for women, infants, and children; prescription drugs, prosthetic devices, therapeutic devices.
Colorado Exempt Uses: Purchases of machinery or machine tools, in excess of five hundred dollars to be used in Colorado directly and predominantly in manufacturing tangible personal property; Purchases of machinery and machine tools, or parts thereof, used in the production of electricity; Sale of construction and building materials to a common carrier by rail operating in interstate or foreign commerce for use by the common carrier in construction and maintenance of its railroad tracks; all sales of construction and building materials to contractors and subcontractors for use by government entities, charitable organizations or non-profit schools (C. R. S § 39-26-701 to 39.26-726)
NOTE: Certain exemptions do not apply to locally collected sales tax levied by home rule cities. Home rule jurisdictions make their own tax regulations, and they must be contacted directly for information.
CAUTION: Sales tax exemptions mentioned above are very briefly described. Please see the exemption statute and the applicable regulations for details. Transactions that do not meet the requirements of the exemption statute and its applicable regulations do not qualify for the sales tax exemptions.
COLORADO EXEMPTION CERTIFICATES: Vendors must have records sufficient to demonstrate the validity of the exemption with reference to each sale. Colorado accepts exemption certificates and sales tax licenses issued by other states for purposes of making a sale tax free. However, there are no statutory or regulatory provisions prescribing the form of the certificates.
Colorado Application for Exemption:
Colorado Exempt Certificates:
The Department of Revenue issues seperate exemption certificates for charitable organizations and for public works contractors
COLORADO EXEMPTION CERTIFICATE VERIFICATION: License and Exemption verification. Click Here!