In general, auto dealers are required to collect sales tax on the purchase price of each motor vehicle they sell in Colorado and prepare a Standard Sales Tax Receipt for Vehicle Sales (DR 0024) to document the collection of tax. However, auto dealers are not required to collect sales tax on the full purchase price of a motor vehicle sold to a lessor who will collect sales tax from the lessee on the lease payments. In lieu of a DR 0024, the dealer must instead complete a Tax Statement for Leased Motor Vehicle (DR 0026). The DR 0026 must be submitted to the county clerk along with the titling paperwork before title and registration can be issued. The DR 0026N is the instructions for Standard Sales Tax Receipt for Vehicle Sales (DR 0026).
