Colorado Use Tax

[kidicarus13]

Hopefully your tax accountant will also represent you during an audit if you are so unfortunate.

Tangible personal property purchased over the internet and delivered into Colorado is not exempt from taxation simply because it was purchased online. However, if the seller does not have a store, warehouse, or other physical location in Colorado, the seller might not collect the applicable sales tax or retailer’s use tax at the time of the purchase. If a person, business, or other legal entity purchases tangible personal property online for use in Colorado, and pays no tax to the seller at the time of purchase, that purchaser will owe consumer use tax on the purchased property.

Beginning July 1, 2017, if you purchase taxable property over the internet from an out-of-state retailer that does not collect Colorado tax, the retailer must:

• present you with a notice at the time of the sale advising of your obligation to pay consumer use tax directly to the Department;

• send you an annual summary in January listing the purchases you made during the prior year; and

• report the total dollar amount of the purchases you made to the Department.

The annual summary you receive will assist you in reporting and paying consumer use tax. See “How to Report and Pay Consumer Use Tax” below for information about reporting and paying consumer use tax.

Per DOR website.

[Irving]

Totally understood. It's like telling someone that they drive 5 over all the time and never have a problem.

[Jer]

There's an awful lot of posts here that might indicate most consumers don't realize they're supposed to be paying tax on ALL online purchases. This is nothing new. Now retailiers are required to send notice because the next step is a big time crack down since it's harder to plead ignorance now that these businesses are doing the .gov's bidding for them.

[kidicarus13]

No one wants to be a test case. The State wants what they feel they're due. Like gambling... do your taxes based on what you can afford to potentially lose.

[hurley842002]

I'll say it again, screw Colorado!

[Eric P]

Again, what does the state do to deserve the revenue from out of state sales?

Abosulely nothing.

[hurley842002]

Again, what does the state do to deserve the revenue from out of state sales?

Abosulely nothing.

Colorado is run by Democrats, therefore they are "entitled" to the revenue.

[Irving]

Does anyone know of any other states that require this?

[Grant H.]

Does anyone know of any other states that require this?

From http://www.salestaxinstitute.com/Sal..._sales_use_tax

Currently 45 states plus the District of Columbia impose a general sales tax.

Snip...

Currently, every state that imposes a general sales tax also imposes a use tax.

From http://www.salestaxinstitute.com/Sal...rce=stiwebsite

The sales tax is imposed on retail transactions. It applies to all retail sales of tangible personal property, and in some states services, in the state. The use tax is imposed on consumers of tangible personal property that is used, consumed, or stored in this state. Consumer’s use tax applies to purchases from out-of-state vendors that are not required to collect tax on their sales. Sales and Use tax generally applies to most leases of tangible personal property. The sales tax and the use tax are "mutually exclusive", which means either sales tax or use tax applies to a single transaction, but not both.

[Irving]

So 45 out of 57 states are liberal cesspools?