Colorado Use Tax

[kidicarus13]

If it's a state sales tax, what does the county have to do with it? Or are they getting local taxes also? I believe the state sales tax is 2.9

Colorado use tax is calculated at the same 2.9% rate as the state sales tax. Some cities, counties, and special districts in Colorado also impose a use tax. The Department of Revenue administers use tax for certain special districts, but does not administer use tax for any city or county. Instead, any use tax imposed by a city or county in Colorado is remitted directly to the applicable city or county. See Department of Revenue publication DR 1002, “Colorado Sales/Use Tax Rates,” available online at Colorado.gov/Tax, for information about use taxes, exemptions, rates, and remittance information for cities, counties, and special districts in Colorado.

[Skip]

So is this going to be crosschecked and verified like the Feds handle 1099’s? The way I understand it, if someone sends me a 1099, they also send the Feds a copy of my 1099. The IRS then verifies that I’ve accounted for the 1099 on my taxes.

If XYZ Retailer sends me a notice saying I’ve spent $100 in 2017, will Colorado be verifying that I report that purchase and pay my taxes on the purchase? Also, I’m too lazy to look it up right now... is the tax rate 3%-ish.

(Not a tax professional)

My understanding is they are voluntarily reporting sales to the state to avoid litigation. This is the game they played with Amazon; report or we go to court. There isn't an official reporting mechanism/form. So the larger the dollars the more likely the enforcement.

I don't think any state has won such a lawsuit because these retailers don't have nexus in our state. And shipping to customers in the state hasn't been a means to impose nexus. No one wants to find out which way that would go. The trend has been to decrease state autonomy when it suits Libs and increase it subjectively for the same reason. CO can't enforce it's own marriage laws but can cross state lines and impose nexus on companies in other states?!?

After this threat, Amazon agreed to open a fulfillment center in Aurora, with some huge tax breaks (of course).

The retailers sending our purchase data to the state costs them nothing and transfers the burden onto us. The state can then beat us up for it. Retailer is off the hook.

[CS1983]

The only way to stop this at the election level is for people to understand what money is: a fungible proxy for a man's time and labor.

When they stop viewing money as some thing unto itself and realize that every tax dollar is a % of time they literally worked as an indentured servant, there will be some semblance of hope to change things.

[Eric P]

What the problem is, is all the dummies that voluntarily comply with this law. How else would the state know that XYZ company in another state shipped goods to Colorado? They wouldn't. Colorado has no right to demand records from out of state companies. They have no way of enforcing this law except when information is volunteered.

Also what would happen, if say you use pre-pay cards or fake names to order stuff online.

fvck I dislike this solid blue state more & more

[crays]

Quick question, because I truly don't remember:

Are Gift Cards taxable?

I know that if I redeem a gift card, I will be taxed on the merch I buy (if taxable), but I don't think the purchase of the gift card is.

All this is directed at the above post regarding "anonymous"/guest purchases using prepaid debit/credit vehicles. Some merchants do not allow their use.

[skoodge]

What if I lost those tax forms they sent me in a boating accident?

[Circuits]

What if I lost those tax forms they sent me in a boating accident?

If the amount is large enough that DOR decides to go after you, they'll demand payment. If you don't pay, they'll eventually enter a garnishment order against any wages you get, and an offset against any federal or state tax returns you're owed until the state is paid what it says you owe them.

[skoodge]

If the amount is large enough that DOR decides to go after you, they'll demand payment. If you don't pay, they'll eventually enter a garnishment order against any wages you get, and an offset against any federal or state tax returns you're owed until the state is paid what it says you owe them.

That sounds like fun. But I really have no idea where my newegg one went. Big brother needs their share.

[TFOGGER]

No Hablo ingles?

[Eric P]

Wonder how many throw these away thinking its just junk mail from the vendor???

The state is probably hoping most toss them so they can steal more through late fees or fines.

I check mail once a week, and 99% goes in the shredder un-opened if my name is on it or garbage for standard junk mailers. I check more often when I am expecting something like standard tax forms. But it is amazing how much junk is disguised as official mail.