All Letter Rulings

Private Letter Rulings & General Information Letters

Businesses and individuals can request a general information letter or private letter ruling on any tax administered by the department. General information letters are general discussions of tax issues that are not specifically addressed in other department publication, such as FYIs, rules and regulations, or form instructions. General Information Letters are general statements of department understanding and cannot be relied upon as binding guidance. Private letter rulings are specific determinations of the tax consequences of a proposed or completed transaction. Unlike general information letters, private letter rulings are binding on the department and, therefore, provide taxpayers with greater certainty for their business and personal taxes. However, private letter rulings can only be relied upon by the party to whom the ruling is issued. Private letter rulings cannot be relied upon by any taxpayer other than the taxpayer to whom the ruling is made. For more information about general information letters and private letter rulings including fee amounts and how to submit a request, please see department regulation 24-35-103.5.

List of All Letter Rulings
Letter Ruling Identification Number	Letter Ruling Description
PLR-24-002	Child Care Contribution Credit - Published June 11, 2024 A taxpayer who makes a monetary contribution to the requester, a child placement agency, is allowed to claim the child care contribution tax credit pursuant to section 39-22-121(1.5), C.R.S.
PLR-24-003	Sourcing of Sales to the U.S. Government of Property Stored by the Seller in Colorado - Published September 6, 2024 Company’s receipts from sales of property to the U.S. Government, as described in this ruling and made under the contract covered by the ruling, are not in Colorado under section 39-22-303.6(5), C.R.S., for corporate income tax purposes.
PLR-24-004	Employee Retention Credits - Published August 2, 2024 Wages, the deduction of which was disallowed under section 3134(e) of the Internal Revenue Code, may be subtracted from federal taxable income.
PLR-24-005	Retailer-Contractor Purchases of Building and Non-building Materials - Published July 1, 2024 Company’s verification of a retailer-contractor’s valid Colorado sales tax license is sufficient to exempt Company from collecting sales tax on the retailer-contractor’s purchase of building materials and certain non-building materials that are likely to be resold. Company should collect sales tax on the purchase of tools and other contractor supplies when such purchases are likely used by the mechanical retailer-contractor.
PLR-24-007	Taxability of Ancestral and Health Reports and Saliva Kits - Published July 22, 2024 Company’s sale of ancestral and health reports and the saliva kits used to collect customer’s DNA for generating those reports are not subject to sales tax in Colorado. Company’s use of saliva kits to collect customer’s DNA for generating the ancestral and health reports is subject to use tax in Colorado.
GIL-24-001	Residency of foreign students, interns, and trainees - Published March 21, 2024 Concerning the residency status of foreign students, interns, and trainees in Colorado on F-1, M-1, or J-1 visas.
GIL-24-002	Noncollecting Retailer Notice & Reporting Requirements - Published March 11, 2024 Concerning the requirements for noncollecting retailers under section 39-21-112(3.5) if the retailer neither maintains any place of business in Colorado nor solicits business in Colorado making sales in Colorado at or exceeding economic nexus thresholds.
GIL-24-003	Taxability of Certain Beverages and Insulin - Published July 2, 2024 Colorado generally imposes sales and use tax on non-alcoholic beer, kombucha, bottled coffee with sweetener, and insulin that is not dispensed pursuant to the direction of a practitioner.
PLR-23-001	Sales of Landscape Construction Materials- Published March 14, 2023 Sales of grass seed and erosion control blankets are exempt from sales tax if the sale is made to a construction contractor who provides a current contractor’s exempt certificate (DR 0163). Sales of fertilizer are not exempt because fertilizer does not contribute to landscape construction but instead is a part of landscape maintenance
PLR-23-002	Exclusion of Gain from Apportionment Factor- Published March 14, 2023 The gross receipts from the sale of real estate are not included in the receipts factor for purposes of apportioning income under section 39-22-303.6(4)(a), C.R.S.
PLR-23-003	Sales and Use Tax on Food For Home Consumption- Published August 14, 2023 The Company’s food products are food for home consumption and are not prepared food or food marketed for immediate consumption. Therefore, the Company’s food products are exempt from the state sales and use tax.
PLR-23-004	Travel Experience Packages- Published October 20, 2023 The taxability of an inseparably mixed transaction depends on the true object of the transaction from the purchaser's perspective. The true object of the Basic Travel Experience Package sold by Company A and provided by Company B is a nontaxable service, so this inseparably mixed transaction is not subject to sales tax.
PLR-23-005	Affiliation of Retail Marijuana Business Licensees for the Purpose of Determining Excise Tax - Published November 13, 2023 Common ownership between marijuana business licensees is not a requirement for affiliation. Because Company X has control via contracts over both Company A and multiple dispensaries, Company A is under common control with the dispensaries. Company A and the dispensaries are affiliated marijuana licensees because they are controlled by the same interest.
PLR-23-006	Sales and Use Taxation of Subscription-based Membership - Published February 8, 2024 The fee that Company’s charges for a subscription-based membership, the primary benefit of which is providing the purchaser with free delivery on future orders that meet certain conditions, is not subject to state sales and use tax.
PLR-23-007	Taxability of Delivery Fee - Published January 19, 2024 Company’s delivery service is separable from the sale of tangible personal property because the delivery is performed after the taxable property is offered for sale and the delivery service is optional. Because the delivery service is separable and the charge for the delivery service is separately stated, Company’s delivery fee is not subject to state sales or use tax.
PLR-23-008	Applicability of the Manufacturing Machinery Exemption to Certain Bakery Equipment - Published February 20, 2024 Company’s purchase and use of certain bakery equipment is exempt from Colorado sales and use tax pursuant to section 39-26-709(1)(a)(II) and (2), C.R.S. This exemption applies to related state-administered local taxes except when the bakery equipment is purchased or used in a locality that has not adopted the optional manufacturing machinery and machine tools exemption.
GIL-23-001	Sales Tax on Tips in a Dining Establishment- Published October 11, 2023 Pooled tips at a dining establishment are not subject to sales tax when the tip is voluntarily given by a customer and the entire amount of the tip is distributed to the person who actually rendered the service. Prepopulated tips that can be removed by the customer at the point of sale at a dining establishment are not subject to sales tax. Tips at a dining establishment that are added by the vendor and cannot be removed or amended by a customer are subject to sales tax.
GIL-23-002	Foreign Source Income Exclusion- Published September 20, 2023 The foreign source income exclusion authorized by section 39-22-303(10), C.R.S., is not allowed to individuals. The foreign source income exclusion is allowed only to C corporations.
GIL-23-003	Taxability of Liquefied Petroleum Gas- Published October 11, 2023 The sale of liquefied petroleum gas for use in recreational vehicles (not for propulsion), cabins, or tents at campsites is subject to sales tax as a retail sale. A retail merchant who uses a portion of liquefied petroleum gas purchased at wholesale for their own use must remit use tax to the department on the purchase price paid for the amount of gas used. Liquefied petroleum gas sold for retail use, and not to propel a motor vehicle, is not subject to the gasoline and special fuel tax.
GIL-23-004	Child Care Contribution Credit -Published January 26, 2024 Regarding the child care contribution income tax credit, the letter discusses the disposition of credits earned in excess of the donor’s Colorado income tax liability. The letter also discusses organizations that will provide child care but are not yet licensed. Finally, the letter discusses mixed-use facilities.
PLR-22-001	Bulk Water Sales Company's sales of water are not sales of tangible personal property and are, therefore, not subject to Colorado sales tax.
PLR-22-002 PLR-22-003 PLR-22-004	Nonresident Trust PLR-22-002, PLR-22-003, PLR-22-004 For purposes of determining the Colorado income tax imposed on the federal taxable income of a trust, a trust is a “nonresident trust” when the trustee is a Delaware corporation; the trustee’s agents, including the primary trust officer, handle the day-to-day administration of the trust from the trustee’s Delaware office; all of the trust's books, records, and accountings are held at the trustee’s Delaware office; all investments made with respect to the trust's direct holdings, if any, would be made by agents of the trustee at the trustee’s Delaware office; and the trust is administered in Delaware, not in Colorado.
PLR-22-005	Streaming Platform Credits Company's sales of platform credits are not subject to state and state-administered local sales tax. The redemption of platform credits by viewers, both with and without third-party enhancements, are not subject to state and state-administered local sales tax.
PLR-22-006	Employee Retention Credits Wages, the deduction of which was disallowed under section 3134(e) of the Internal Revenue Code, may be subtracted from federal taxable income.
GIL-22-001	Credit for Tax Paid to Other States A taxpayer may not claim the credit for income tax imposed for the amount of taxes on federal taxable income accrued to another state on income derived by a resident individual from sources in another state if an individual taxpayer becomes a Colorado resident in a tax year that is after the tax year when the tax accrued in the other state.
GIL-22-002	Retailer Statements Regarding Sales Tax Colorado imposes two obligations on retailers, one affirmative and one negative, when making statements to consumers regarding sales tax. First, a retailer is required to show sales tax as a separate and distinct item, either on a receipt, invoice, or other document issued to the purchaser, or on signage clearly visible to the purchaser. Second, a retailer may not advertise, directly or indirectly, that sales tax will be refunded to the purchaser, absorbed by the retailer, or not added to the price. Meeting the first obligation does not permit a retailer to avoid the second.
GIL-22-003	Sourcing nonresident partner’s distributive share of partnership income This general information letter discusses the sourcing of a nonresident partner’s distributive share of ordinary business income, other items of partnership income, and the gain from the sale of a disregarded entity by the partnership.
GIL-22-004	Credit Card Surcharges Credit card surcharges imposed in accordance with the requirements of Senate Bill 21-091 are not part of the taxable purchase price.
GIL-22-005	Alcoholic Beverages Alcoholic beverages sold to state institutions of higher education for official functions are exempt from sales tax.
GIL-22-006	Refund limitation for conservation easement credits from donations made by pass-through entities This letter discusses the statutory limit for conservation easement tax credits in the event a refund is claimed for the credit and how that limit applies to a credit allowed for a donation made by a pass-through entity.
PLR-21-001	Sales Tax on Cable Television Company's sales of Basic Service Packages, Premium Channels, Sports Packages, Pay-Per-View Events, and Video On Demand content (as each are described in the ruling) are not subject to state and state-administered local sales tax.
PLR-21-002	Paid Subscription Program Company’s sale of its paid subscription program to Colorado customers is subject to Colorado state and state-administered local sale tax. Company’s provision of a free, one-month trial of the paid subscription program is not subject to Colorado state and state-administered local sales and use tax.
PLR-21-003	Sales and Use Tax on Aircraft Brought Into Colorado Colorado sales tax is not due on sales of aircraft whereby the purchaser takes possession of the aircraft outside of Colorado. However, aircraft based in or brought into Colorado are subject to Colorado use tax.
PLR-21-004	Acquisition and Leasing of Cranes and Hoists Company is not required to collect state and state-administered local sales taxes on the provision of cranes and hoists with an operator. Company must pay sales or use tax upon its acquisition of cranes or hoists, or when equipment is used in Colorado that was purchased in another state. Related services would not be part of the taxable purchase price if Company was required to collect.
PLR-21-005	Online Education Platform The Company’s online learning plan products are subject to state and state-administered local sales tax. However, the Company’s internet advertising revenue from the pay-per-click model and the fulfilling of insertion orders is not subject to state and state-administered local sales tax.
PLR-21-006	Sales Tax on Medical Devices The sale of the heart monitor to Colorado customers is subject to state and state-administered local sales tax in Colorado because the heart monitor is tangible personal property sold by a retailer and is not exempted from sales tax under the medical device exemptions.
PLR-21-007	Sales Tax on Shredded Tires and Railroad Ties Company’s purchases of shredded tires and railroad ties that are utilized and burned to subsidize the requirement for coal in the cement manufacturing process are not exempt from sales tax pursuant to section 39-26-102(21), C.R.S.
GIL-21-001	Sales Tax Exemption for Residential Energy Use Discussion of the sales tax exemption for residential energy usage as it pertains to multi-unit apartments.
GIL-21-002	Sales and Use Tax on Items Given as Gifts by a Charitable Organization This general information letter discusses the taxability or exemption of items purchased tax-free by a charitable organization for the purpose of resale, but then given away by the charitable organization, rather than resold
GIL-21-003	Prefabricated Housing Manufactured Outside Colorado A general discussion of retailer collection duties, sourcing, and the exemption for sales of certain prefabricated housing
GIL-21-004	Colorado Nexus for Out-of-State Pass-Through Entity When determining nexus for a partnership rendering management, distribution, or administration services to a registered investment company, the sales threshold amounts are computed and sourced in accordance with section 39-22-303.7(2), C.R.S., and 1 CCR 201-1, Rule 39-22-303.7-2.
GIL-21-005	Guided Walking Tours Colorado does not generally impose sales tax on services. Guided walking tours are not among the services specifically subject to sales tax. However, if nontaxable services are bundled with the sale of taxable tangible personal property, commodities, or services, the nontaxable services will also be subject to sales tax, unless the service is separable from the taxable sale and the service charge is separately stated
PLR-20-001	Vehicle Sharing Transactions Vehicle sharing platform operator must collect sales taxes and daily rental fees from drivers on vehicle sharing transactions.
PLR-20-002	Nonprofit Organization's Regular Charitable Functions and Activities A charitable organization’s purchase of food for attendees at educational conferences it organizes and hosts are made in the conduct of its regular charitable functions and activities and therefore exempt from sales and use taxes.
PLR-20-003	Enterprise Zone Investment Tax Credit A company's sale of a portion of the equity interest in a limited liability company to passive investors does not, by itself, disqualify the company from claiming enterprise zone investment tax credits.
PLR-20-004	Telephones for the Hearing Impaired The telephones for the hearing impaired provided by company qualifies as durable medical equipment and are exempt from sales tax.
PLR-20-008	Computer Software Sales of company's computer software and services are not subject to sales or use tax.
PLR-20-009	Sales Tax on Cable Television Company's sales of Core Service Packages, Premium Channels, Sports Packages, Pay-Per-View Events, and Video On Demand content (as each are described in the ruling) are not subject to state and state-administered local sales tax.
GIL-20-001	Sourcing of Guaranteed Payments A guaranteed payment for services to a nonresident partner is not part of the partner's distributive share and, therefore, it is sourced pursuant to section 39-22-109(2)(a)(II), C.R.S. Sections 39-22-109(2)(a)(III) and 39-22-203, C.R.S., do not apply because they apply only to distributive shares.
GIL-20-002	Truck Bed Liner Discussion of sales of truck bed liner chemicals to retailers as retail or wholesale sales.
GIL-20-003	Conservation Easement Tax Credit Mutual ditch companies are nonprofit corporations that qualify for the conservation easement tax credit. However, a ditch company whose shareholders include one or more state governmental entities is ineligible to claim any portion of a conservation easement tax credit. A “state governmental entity” includes the state and its political subdivisions.
GIL-20-004	Apportionment of Income Arising from Restricted Stock Units A nonresident's income from restricted stock units is sourced to Colorado based upon the number of work days in Colorado during the period the employee was required to work for the employer prior to the vesting date.
PLR-19-001	Transferable Tax Credit Program This letter addresses the transferable income tax credits in section 24-46-104.3, and specifically how the transfer of eligible Enterprise Zone credits are treated by the Department.
PLR-19-002	Child Care Contribution Credit Contributions made to a club that provides training and competition programs for young ski racers, in order to fund a project to expand the club's training environment, do not qualify for the child care contribution credit.
PLR-19-003	Economic Nexus An out-of-state corporation has economic nexus with Colorado as a result of its prior year sales exceeding the threshold found in 39-26-102(3)(c) and must register to collect and remit state sales tax.
PLR-19-004	Affordable Housing Tax Credit A partnership investing in Colorado's Affordable Housing Tax Credit program seeks to transfer credits to eligible qualified taxpayers of the partnership.
PLR-19-005	Child Care Contribution Credit Contributions made to a club that provides training and competition programs for young ski racers, in order to fund a project to renovate the clubhouse, do not qualify for the child care contribution credit.
PLR-19-006	Child Care Contribution Credit Subject to the requirements, conditions, and limitations set forth in this ruling, the Organization may issue a Child Care Contribution Tax Credit Certification (DR 1317) to Colorado taxpayers who purchase donated property or services at Organization’s charity fundraising auction event for the excess of the purchase price paid for an item over its fair market value.
GIL-19-001	Sales Tax on Rental of Entire Single Family Home This letter addresses the short term rental of an entire private residence is subject to sales tax.
GIL-19-002	Collecting Sales Tax on Sales of Motor Vehicles This letter addresses the obligations of a company to collect sales tax on sales of motor vehicles it facilitates on behalf of its clients.
GIL-19-003	Collecting Sales Tax on Gift Wrapping Services This letter addresses the taxability of gift wrapping.
PLR-18-001	Place of Sale for Out-of-State Business - Rescinded
PLR-18-002	Refundable Enterprise Zone Renewable Energy Credits Taxpayer can annually claim a refund of the renewable energy investment tax credit of up to $750,000 pursuant to §39-30-104(2.6), C.R.S. until the refund is fully utilized, assuming Taxpayer is entitled to claim a refund of that amount in the enterprise zone renewable energy investment tax credit.
PLR-18-003	Taxability of Prototype Development Company's purchase of aircraft component parts that will be used in the construction of an aircraft prototype are exempt from Colorado sales and use tax under § 39-26-711, C.R.S. Machinery and machine tools purchased by Company to build the prototype aircraft will be exempt from Colorado sales and use tax under§ 39-26-709, C.R.S.
PLR-18-004	Sales of Services When a vendor transfers tangible personal property to a customer as part of services performed by the vendor for the customer, the application of sales tax will depend on whether the sale of property and services are separable and, if not, whether the customer’s “true object” is to acquire the tangible property, in which case the transaction is subject to tax, or to receive the service, in which case the transaction is a non-taxable service. Taxpayer at issue performs services of converting raw data into information delivered to clients. The paper on which the information is sent is incidental to the client’s true object. Therefore, the charges by Company are for a service and are not subject to sales or use tax.
PLR-18-006	Daily Vehicle Rental Fee For purposes of the daily vehicle rental fee found in § 43-4-804(1)(b)(I)(A), a subsequent “renewal” of a contract refers to a rental contract that is extended rather than to a new contract that follows the expired or terminated original contract.
PLR-18-007	Optional Motor Vehicle Warranties The price for a non-taxable service sold in connection with the sale of a taxable product is included in the calculation of tax for the taxable product if; the price for the non-taxable service is not separately stated, or the sale of the non-taxable service is inseparable from the sale of the taxable product.
PLR-18-008	Enterprise Resource Planning Software Maintenance Contracts Company's charges for its computer program maintenance and support services are not subject to sales or use tax, as company is not selling taxable computer software.
GIL-18-001	Reporting Requirements for Non-Collecting Retailers An out-of-state, subscription-based company that offers a monthly service in which no customer action is required to initiate a new monthly shipment does not have to send recurring Transactional Notice's for subsequent shipments. Company must provide the out-of-state purchaser with the Transactional Notice and Annual Purchase Summary and include the out-of-state purchaser in the Annual Customer Information Report sent to the Department.
GIL-18-002	Monthly Charges for Energy Savings Technology A monthly “subscription” charge may be subject to sales or use tax when the charge is more reasonably considered a taxable rental of tangible personal property and not a company providing a nontaxable service. Factors that help determine whether a charge is more closely aligned with the provision of a taxable rental of tangible personal property or a nontaxable service are reviewed in this letter.
GIL-18-003	Tax Due on Delivery and Installation Tax is collected only on the price paid by the customer for the product, and not on the delivery or installation charges, if those charges are separately stated and the customer is not required to purchase delivery or installation services as part of the sale of the product.
GIL-18-004	Taxable Nature of Prescription Pet Food Prescription pet food may be eligible for exemption from sales tax when the prescription pet food is prescribed by a veterinarian, furnished by the prescribing veterinarian, and leaves the veterinarians facility with the patient.
GIL-18-005	Component Airplane Parts Component airplane parts that are permanently affixed to aircraft are exempt from sales and use tax, even when the aircraft is not a commercial airline used in interstate commerce.
GIL-18-006	Occasional Sales Sales made by charitable organizations are generally subject to state sales tax, but may be exempt if the sales meet the qualifications for occasional sales. If an organization fails to meet the requirements, then all sales by the charitable organization may be subject to sales tax.
GIL-18-007	Scaffolding Rental The rental of scaffolding if delivered on its own without an associated charge for installation would likely be subject to sales tax. Related items, such as tenting, cords, wood planking, and lighting are also tangible personal property and the rental of such would likely be subject to tax.
GIL-18-008	Installation of Commercial Signage In cases where the sale of goods also involves the sale of related services, such as the service of installation of property, if the sale of the service is both separable from the sale of the taxable goods and the price for the service is separately stated, then sales tax is calculated only on the price of the taxable goods. If the sale of the installation service is separable from the sale of the sign, then charges for services associated with installation are also likely nontaxable.
GIL-18-009	Restaurant Condiments The taxability of a restaurants purchase of ingredients to make condiments is dependent on the restaurants ultimate use of the condiments. When a restaurant makes condiments available to customers, the condiments are not treated as if they are sold to customers. The restaurant is viewed as the user and consumer of these products and must pay sales tax when these items are purchased from suppliers. However, Colorado exempts the purchase of food ingredients that become an integral or constituent part of a food product that is intended to be ultimately sold at retail for human consumption. If the restaurant separately states a price for a condiment when sold to a customer, the sale is likely a retail sale.
GIL-18-010	Prescription Containers Purchased by Pharmacies A pharmacy’s purchase of containers and labels from a vendor will be exempt from sales or use tax when the containers and labels purchased are later used to contain and dispense an order for the pharmacy’s customers.
GIL-18-011	Sale of Water and Ice through Vending Machines Water and ice sold through a vending machine is likely not taxable under §§ 39-26-102.15 or 39-26-102(4.5), C.R.S. The Department defines food under the federal Supplemental Nutrition Assistance Program, which defines food to include water in a bottle and crushed or block ice.
GIL-18-012	Sale of Electric Car Charging Stations and Contracts This letter provides a brief overview of the considerations the Department makes when determining whether the sale of network access fees and maintenance contracts are subject to sales tax when sold in conjunction with tangible personal property.
GIL-18-013	Essential Containers If a food container is “not necessary to transfer the food to the consumer,” the container is nonessential and subject to taxation. If “the retailer cannot transfer the food to the consumer without” the container, it is exempt from taxation.
GIL-18-014	Catering and Facility Rentals by Charitable Organizations Catering services provided by a charitable organization are exempt from Colorado sales and use tax if the organization has not exceeded the occasional sale exemption thresholds. Rental of the facility may be subject to sales tax.
PLR-17-001	Apportionment of Income on a Combined Report All corporations meeting the requirements to be included in an affiliated group must be included in the combined corporate income tax return. The affiliated group may calculate its combined income tax liability using the methodology outlined in Department Private Letter Ruling PLR-11-002 and PLR-15-005.
PLR-17-002	Lease of Space on Telecommunications Towers The lease of space on Company’s telecommunication towers is subject to sales and use tax.
PLR-17-003	Non-Transplantable Human Tissue The charge by Taxpayer for provisioning non-transplantable human tissue to third parties is subject to sales and use taxes.
PLR-17-004	Membership Fees Taxpayer's sale of membership fees are not subject to Colorado sales or use taxes.
PLR-17-005	Retailer's Use Tax - Rescinded
PLR-17-006	Soil Erosion Control Material Company must collect state and state-administered sales taxes on retail sales of Excelsior logs and silt fencing to construction contractors and subcontractors who present Company with their contractor's exemption certificates.
PLR-17-007	Lost or Damaged Leased Property Payment from a lessee to company for the loss or damage of rental equipment is not subject to sales or use tax.
PLR-17-008	Employee Nexus - Rescinded
PLR-17-009	Treatment of Gain Realized from the Sales of Ownership Interest in an LLC The sale of Company's ownership interest in an LLC is intangible personal property. The LLC was formed in furtherance of the purpose of Company, and therefore the gain realized from the sale of the LLC is business income. Where Company's pass-through income generated from the LLC is business income for Colorado tax purposes, than Company's distributive share of the LLC's gross sales are Company's own gross sales.
PLR-17-010	Third Party Cooperative Direct Marketing Advertiser Company is not liable for sales or consumer’s use tax on materials produced and mailed by a third-party cooperative direct market advertiser that advertises for multiple parties in the same mailer.
GIL-17-001	Audio Visual Equipment Company may sell audio visual equipment exempt from tax if a contractor is engaged by an exempt entity and presents either the contractor’s sales tax license or the contractor’s exemption certificate.
GIL-17-002	Equipment Leases The lease of computers to students does not qualify for the exemption for sales to schools. The lease may be a credit sale and taxes are due on the installment payments. If the lease is a true lease, then lessor must pay tax when the lessor acquires the computers or must obtain permission from the department to collect tax on the lease payments.
GIL-17-003	Wood Pellets Wood pellets used for a residential purpose are exempt from sales and use tax.
GIL-17-004	Change Orders Related to Long Term Leases The replacement of existing equipment with new equipment does not convert a long term lease to a short term lease. However, if the property does not replace existing equipment but is more accurately viewed as the addition of property added to a lease, then the addition of the new property in the last three years of a lease should be viewed as a short term lease.
GIL-17-005	Sales of Mobile Devices - Rescinded
GIL-17-006	Optional Maintenance Agreement Maintenance agreements when sold in connection with the sale or lease of taxable tangible personal property are generally subject to Colorado sales or use tax unless the maintenance contract is optional and separately stated from the sale or lease of the taxable tangible personal property. Even though the monthly lease payment does not include a breakdown of the portion of the payment that relates to the optional maintenance agreement, the lease is separately stated from the sale or lease of the taxable tangible personal property because the maintenance agreement is a separate contract from the lease contract and customers must separately sign each contract and if the cost of the maintenance agreement is included in the lease, there is a separate line item detailing the cost of the maintenance agreement in the lease contract.
GIL-17-007	Fluoride Varnish The fluoride varnish and the other items included in the kit appear to be materials furnished by licensed providers in connection with providing professional services to patients and, therefore, would be exempt.
GIL-17-008	Marketing Material Services provided in connection with the marketing material may be subject to tax if the services are not optional and separately stated from the sale of the marketing material.
GIL-17-009	Retailer's Use Tax on Leases - Rescinded
GIL-17-010	Medical Imaging Equipment If the services Company provides pursuant to a service agreement are inseparable from the sale of the original equipment, then the price for the service is included in the calculation of sales tax for the taxable goods.
GIL-17-011	Electricity to Produce Software If the activities engaged in by Company did qualify as manufacturing or as an industrial purpose, then the electricity used to program software that is included in the finished goods would likely be viewed as exempt.
GIL-17-012	Software and Related Services Is the sale of software or related services subject to sales tax?
GIL-17-013	Market Reports The sale of market reports are not the sale of a service if the report is not customized for a particular customer.
GIL-17-014	Security Systems and Related Services The sale of security systems and related services may be subject to sales or use tax depending on the type of service the Taxpayer offers to its purchasers.
GIL-17-015	Independent Contractor Creates Nexus - Rescinded
GIL-17-016	Contracting Manufacturing The exemption for manufacturing machinery and machine tools likely extends to the purchase and use of these items when used in contract manufacturing.
GIL-17-017	Core Charges Colorado sales tax applies to a separately stated core charge if the retailer does not resell the property in the usual course of its business.
GIL-17-018	Exemption for Silviculture Equipment Timber and timber product handling equipment purchased after 2013 and valued by the county assessor as silvicultural equipment likely qualifies for the farm equipment exemption.
GIL-17-020	Orthodontic Materials Sales of orthodontic materials will not be subject to sales tax if the orthodontic materials are furnished by a licensed provider to a patient and the materials leave the facility with the patient or are consumed by the patient at the medical office.
PLR-16-001	Electric Service Provider's Use of Electricity Electric service used by an electric service provider at its facilities is not subject to Colorado sales or use tax because the consumption of the electricity it generates is not a retail sale.
PLR-16-002	Oil and Gas Well Cementing Products and Services - Rescinded
PLR-16-003	Billing Services The paper or electronic billing services are not subject to sales tax because it is an nontaxable service. The paper invoices are an incidental transfer of personal property related to the provision of a nontaxable service.
PLR-16-004	Amenity Fee The amenity fee is subject to tax because the amenity fee is included in the charge for taxable living accommodations.
PLR-16-005	Enterprise Zone Investment Tax Credit- Rescinded
PLR-16-006	Credit for Taxes Paid to Another State Taxpayers are entitled to a credit for taxes paid to Ohio on income that Colorado sources to Ohio. Taxpayers determine the amount of income sourced to Ohio by using an average of the limited liability company’s apportionment ratios for the three tax years immediately preceding the tax year in which the husband’s interest in the limited liability company was sold.
PLR-16-007	E-book, Online Courses, and Virtual Lessons E-book and Company's online courses are tangible personal property subject to sales tax. Virtual lessons described in the ruling are a service not subject to tax.
PLR-16-008	Prosthetic Device Product is exempt from sales and use tax as a prosthetic device.
PLR-16-009	Licensed Movies and Content Both the digital movies/content and the computer hard drives received from the film distributors constitute tangible personal property subject to Colorado sales or use tax.
PLR-16-010	Local Tax Obligation - Rescinded
PLR-16-011	Colorado Sales or Use Tax - Rescinded
PLR-16-012	Child Care Contribution Tax Credit Certification Contributions made to a fund that awards grants to eligible nonprofit child care programs in Colorado to make capital improvements are eligible for the child care contribution credit despite the contribution not being made directly to the child care facility or program.
PLR-16-013	Food and Nutritional Products Products that meet the definition of "food" and have a "Nutrition Facts" label are exempt from state sales tax.
PLR-16-014	Web Collaboration Services Web collaboration services provided to consumers in Colorado by means of servers located outside Colorado are not subject to Colorado sales tax because it is an interstate service.
PLR-16-015	Acquisition and Restructuring Transaction Both the partnership income received by the corporate partner and the gain the corporate partner realized from the sale of its interest in the partnership are business income for the corporate partner. Based on multiple factors appertaining to the sale, the gain from the sale is excluded from the corporate partner’s apportionment factor in determining its Colorado tax.
GIL-16-001	LLC Employee in Colorado If company does not fall within the protection of P.L 86-272, members of the S corporation must file a Colorado income tax return if the S Corporation has substantial nexus with Colorado.
GIL-16-002	Software Updates and Maintenance Agreements Computer software updates and maintenance agreements purchased after July 1, 2012 that are delivered electronically are not subject to sales tax because they are not tangible personal property, even if the update or maintenance is for computer software that was treated as tangible personal property when purchased.
GIL-16-003	Per Click Fee The “per click” fee is not subject to tax because the tangible personal property, which is inseparable from the maintenance service, is exempt as a sale for resale or ingredient or component part used to produce tangible personal property that is sold.
GIL-16-004	Income Tax Nexus of Franchisor Discussion of what items of a franchisor's income would likely be considered in the sales calculation to determine whether company has substantial nexus for income tax purposes.
GIL-16-005	Refunds When a purchase of taxable tangible personal property includes a taxable shipping charge and the customer returns the item for a refund, the entire amount of sales tax must be refunded to the customer, including the tax paid on the shipping charge.
GIL-16-006	Hotel Fees and Online Travel Companies Cancellation charges that are greater than 50% of the daily reservation room rate are generally considered payment for the room and therefore fully taxable. Attrition fees are more accurately characterized as a pricing mechanism by which a retailer adjusts for a volume discount and must be included in calculation of tax. Colorado sales tax is due on the entire amount charged to the customer for the right to occupy a room or accommodation. Therefore, the amount the online travel company charges is the amount that is subject to tax.
GIL-16-007	Booking Agent Fees That portion of the customer’s payment taken by Company as a commission is part of the price paid by the customer and, therefore, is included in the calculation of sales tax.
GIL-16-008	Into-Plane Fee The nontaxable sale of services are not subject to sales tax because the taxable sale of fuel and a nontaxable sale of services are separable despite their common appearance on a single invoice because the customer must engage in two separate transactions, covered by two separate contracts, with two separate entities.
GIL-16-009	Web Seminars Live web seminars are not subject to sales or use tax because the seminar is a service. A pre-recorded web seminar and self-study material online are subject to tax.
GIL-16-010	Custom Herbal Formulas The custom herbal formulas Taxpayer prepares and sells are subject to sales tax because they are not a prescription or nonprescription drug.
GIL-16-011	Vehicle Rentals An advance payment applied toward the charge for a vehicle rental is taxable. Additionally, when a nonrefundable advance payment that exceeds 50% of the daily rental charge for the vehicle is forfeited due to cancellation or the customer’s failure to appear at the scheduled time, is likely a charge for the rental of the vehicle and, therefore, taxable. Conversely, a nonrefundable advance payment of 50% or less of the daily rental charge would likely be considered a nontaxable cancellation charge if it was forfeited due to cancellation.
GIL-16-012	Distributor Fees Payment of the annual renewal fee is not subject to tax because no tangible personal property is sold.
GIL-16-013	Hotel Thirty-Day Rule- Rescinded
GIL-16-014	Energy for TV News Broadcast Station Electricity used to operate TV communication towers is exempt because TV broadcast uses radio communication to transmit the TV signal and electricity used for radio communication is exempt from tax. However, energy for office computers, printers, lighting, heating, and TV cameras are not exempt.
GIL-16-015	Credentialing Services The credentialing process, as described in the letter, appears to be a service that is not subject to sales and use tax.
GIL-16-016	Consignment Warehouse - Rescinded
GIL-16-017	Mobile Home - Rescinded
GIL-16-018	Management Fee If Company’s client must purchase the management service when using Company’s repair and maintenance service, then the management fee is included in the calculation of sales tax, even if the price for the management fee is separately stated from the taxable sale of auto parts.
GIL-16-019	Leased On-Demand Aircraft Company’s leases of planes do not appear to qualify for an exemption because the lessee is not a “scheduled” operator and does not meet the requirements for the on-demand carrier exemption.
GIL-16-020	Third-Party Liability Payment of the correct type of tax and full amount of tax by one jointly responsible retailer discharges the payment obligation of the other jointly responsible retailer. However, the discharge of the monetary liability does not discharge or otherwise limit the Department’s statutory authority to administer and collect taxes from either jointly responsible retailer if a deficiency occurs in the future.
GIL-16-021	Paint Stewardship Fee The fee that is required pursuant to § 25-17-404(2)(j), C.R.S. is included in the calculation of sales tax when purchasing architectural paint.
PLR-15-001	Electronic Messaging Services Company's integrated desktop messaging, electronic data interchange (EDI) value added network (VAN), broadcast fax, and production email are services and not subject to Colorado sales and use tax. Company is the user and consumer of the telephone and telegraph service used to provide each of its services.
PLR-15-002	Research and Development of Product that will be Sold Purchases of components for manufactured product are exempt as components purchase for manufactured tangible personal property because the manufactured product may be sold. If the product is sold and used outside Colorado, Colorado tax is not due on the sale. If the manufactured product is ultimately used by Company to provide a service rather than sold, Colorado use tax is due on the price Company paid suppliers for the components, but such tax would be due at the time the item is identified as being subject to use by Company.
PLR-15-003	Electronic Messaging Services Company's integrated desktop messaging, electronic data interchange (EDI) value added network (VAN), broadcast fax, and notifications email are services and not subject to Colorado sales and use tax. Company is the user and consumer of the telephone and telegraph service used to provide each of its services.
PLR-15-004	Bulk Water Bulk water sales sold in tanks are subject to Colorado sales or use taxes, but sales of water through a pipeline are not subject to Colorado sales and use taxes.
PLR-15-005	Apportionment of Combined Report's Income All corporations meeting the requirements to be included in an affiliated group must be included in the combined corporate income tax return. The affiliated group may calculate its combined income tax liability using the methodology outlined in Department Private Letter Ruling PLR-11-002 for tax years 2014 and prior; however, once adopted by the Department, Affiliated Group must calculate its combined income tax liability using the methodology that will be adopted by the Department in amended Department Regulation 1 CCR 201-2, 39-22-303(11)(c).
PLR-15-006	Apportionment of Corporate Income Tax Company, which primarily performs services which it consumes, is akin to a service provider and must apportion its gross receipts based on where the costs to perform the service are incurred rather than the Company’s commercial domicile.
PLR-15-007	Custom-Made Closet Organizer A retailer's charge for assembly and installation of Product into a home is included in the calculation of sales tax because the charge for assembly is a taxable service to create a finished product and, although installation of the finished product is not taxable service, the charge for installation is not separately stated from the charge for installation.
PLR-15-008	Lessee Maintenance Agreements Tax for a separately stated charge for motor vehicle fleet maintenance is not included in the sales tax paid by a lessee of a motor vehicle. Lessor is liable for sales or use tax on tangible personal property used to perform the maintenance agreement
GIL-15-001	Interest, Dividend, and Capital Gain Distributions from Colorado and U.S. Obligations If the dividend paid by the mutual fund is interest income from a United States obligation, the interest income can be subtracted from federal taxable income to the extent the income is included in federal taxable income. Colorado imposes tax on interest income from obligations of other states or their political subdivisions, but not on interest income derived from obligations of the State of Colorado and its political subdivisions.
GIL-15-002	Contractor Exemption Certificate If a contractor does not provide a certificate of exemption to a retailer, then the contractor cannot claim an exempt sale and the retailer must charge sales tax on the transaction. A retailer who fails to charge sales tax in such instances is liable for any sales tax that should have been collected as well as penalties and interest. If the contractor later obtains an exemption certificate, it may apply to the Department for a tax refund or the retailer may, in its discretion refund the sales tax to the contractor and claim a credit on its sales tax return.
GIL-15-003	Cloud Service Plans Company’s cloud service plan may constitute intrastate telephone and telegraph services. The Department would likely view charges for data plans by mobile telecommunication providers as telephone service. If the transmission pathway involves both intrastate and interstate telephone service and the charge for the intrastate service is not separately stated, then the entire charge is subject to sales tax. The Department would likely not view the charge for cloud Wi-Fi as a charge for intrastate telephone or telegraph service.
GIL-15-004	Contract Manufacturing When a customer supplies all the raw materials used by the manufacturer to manufacture a product for the customer (contract manufacturing), there is no taxable transfer of tangible personal property from the manufacturer to the customer and the manufacturer's charge to the customer is solely one for nontaxable services. Manufacturer's purchase of manufacturing machinery which is occasionally used for contract manufacturing is exempt under the manufacturing machinery exemption because the exemption does not require the machinery or machine tools to be used exclusively in an exempt manner.
GIL-15-005	Cattle ID Tags and Verification of Marketing Claims- Rescinded
GIL-15-006	Late Payment Fees Sales tax applies to the full purchase price because sales tax is a transactional tax. Events that occur after the sale generally do not affect the calculation of the tax. A late payment fee is generally assessed after a sale is created and when payment is untimely made. The late payment penalty typically reflects the finance or administrative charge for events after the sale and, therefore, do not reflect or affect the sales price at the time the transaction was created.
GIL-15-007	Leases of Low-Emitting Heavy Vehicles A long-term lease is treated as a sale; therefore, sales and use tax exemptions apply to long-term lease payment.
GIL-15-008	Discharged Maintenance Contract Car owner's warranty, on which owner paid sales tax, was discharged in bankruptcy and owner subsequently purchased replacement parts that would have been provided tax free to owner under the warranty. Car owner not entitled to a refund of sales tax paid on replacement parts. Events subsequent to a taxable event generally do not affect the taxability of the transaction.
GIL-15-009	Services in Connection with Retrieving and Copying Medical Records Retrieving and copying medical records, and activities related thereto, are services rather than the sale of tangible personal property and, therefore, are not subject to tax.
GIL-15-010	Banquet and Event Provider Charge A general discussion of the taxability of charges associated with banquet and event rentals.
GIL-15-011	Audio Visual Equipment Audio visual equipment is likely not construction or building materials. A contractor who purchases tangible personal property that is not a building material will be treated as a retailer who resells the property to the real property owner. When the real property owner is a tax exempt entity, the contractor does not pay sales tax to the supplier, and does not collect sales tax on the sale of the property to the real property owner because the owner is exempt from tax.
GIL-15-012	Delivery Charge Delivery charge is separable from the transaction because the customer can purchase a meal from Company without also being required to have the meal delivered. However, the delivery charge does not meet the "separately stated" requirement because the customer is not aware that they are purchasing a delivery charge. Therefore, the delivery charge is subject to sales tax.
GIL-15-013	Tax on Asset Acquisition through Foreclosure A secured lender who obtains title to collateral by foreclosure is not liable for sales tax. However, if the secured lender thereafter sells the collateral to a third party, such as by auction sale, then that sale is subject to sales tax.
GIL-15-014	Sales Taxability of Federal Excise Tax on Aviation Fuel Refunded to Customers State sales tax does not include federal excise tax collected by the aviation fuel supplier from the airline carrier because the federal tax was always refundable and only charged in the first instance as an administrative measure to ensure the federal exemption for fuel is properly claimed.
GIL-15-015	Contractor Pays Tax when Billing on a Time-and-Material Contract A contractor must have a sales tax license when using a time-and-material contract with the real property owner.
GIL-15-016	Employee Creates Nexus - Rescinded
GIL-15-017	Replacement Batteries in Electric Wheelchairs Batteries for wheelchairs, motorized carts, and scooters that qualify as exempt mobility enhancing equipment are exempt. Retailer must exercise reasonable diligence to determine that the exemption applies.
GIL-15-018	Dark Fiber Dark fiber appears to be tangible personal property subject to tax and, therefore, the leasing of such cable may be subject to sales or use tax.
GIL-15-019	Nonessential Food Articles Condiments that are not incorporated into a prepared meal at the time it is transferred to the consumer but that are provided separately, regardless of the method by which they are provided to the customer, are nonessential food articles.
GIL-15-020	Propane Reporting Company can file Colorado Distributor Returns for January 1, 2014 to present on a net gallons basis. However, until January 1, 2016, those gallons that are able to be reported on a gross gallon basis, should be reported as such rather than a net gallon basis.
GIL-15-021	Medical Equipment and Supplies The equipment and supplies listed by Company likely do not qualify for the medical equipment and supplies exemption because they are neither purchased pursuant to a prescription nor are they furnished by a licensed provider as part of their professional service to a patient.
GIL-15-022	Disposable Bag Fee A municipal disposable bag fee collected by a retailer is not included in the sales and use tax calculation on goods purchased by the customer.
GIL-15-023	Sale-and-Leaseback Transactions The tax obligations of the sale-and-leaseback transaction hinge on the term of the lease. If the term of the lease is more than three years, the lease is considered a sale and the lessor may purchase the property without paying tax and collect tax on each lease payment paid by the lessee. If the term of the lease is three years or less, the lessor must pay tax on the property at acquisition and the lease payments paid by the lessee are exempt from tax because the lessor has already paid tax on such property.
GIL-15-024	Tax Exempt Certificates A person holding a sales and use tax exempt certificate is exempt from state, city and county, and special district sales and use taxes.
GIL-15-025	Digital Photographs Digital photographs sold by a photographer are subject to sales tax.
PLR-14-001	Nonprofit Corporation a Taxpayer - Rescinded
PLR-14-002	Foot Orthotics, Braces, Splints and Implant Kits Most foot orthotics, braces, and splints are exempt only if furnished to the patient by a licensed provider as part of the provider's professional service. A joint implant and pins, which are purchased together with a drill bit as a "kit", are exempt from tax, but the drill bit included in the kit is subject to tax.
PLR-14-003	Aggregate Mining, Asphalt and Recycled Asphalt Productions Asphalt production inside and outside an enterprise zone is manufacturing, unless fifty percent or more of the new asphalt is comprised of recycled asphalt. If new asphalt is comprised of fifty percent or more of recycled asphalt, then production of such asphalt is not manufacturing, regardless of whether it is inside or outside an enterprise zone. Aggregate mining and recycled asphalt production is manufacturing when performed in an enterprise zone, but is not manufacturing when performed outside an enterprise zone. Use tax does not apply on aggregate materials mined from manufacturer’s own gravel pit. Lease payments related to mining may constitute the taxable sale of tangible personal property.
PLR-14-004	Delivery and Pick-up Charges Company’s delivery and pick-up charges are not subject to Colorado sales and use tax because they are separable from the rental of the equipment.
PLR-14-005	Internet Wine Sales - Rescinded
PLR-14-006	Food for Retirement Communities Charges by a residential retirement community to residents for meals are exempt from state sales tax. Company’s purchase of food products from suppliers are also exempt from tax.
PLR-14-007	Cancer Treatment Therapy The rental of company’s cancer treatment therapy equipment is exempt from sales and use tax as medical equipment and related accessories for electrotherapy dispensed pursuant to a prescription.
GIL-14-001	Promotional Videos The production of a video is a non-taxable sale of services, even though some inconsequential property is transferred from seller to buyer. If charges for the raw footage and project file reflect the value of the services to produce the raw video and not the value of the property, the raw footage and project files will also be considered a non-taxable service. Company must pay sales or use tax on the items it uses to perform its service.
GIL-14-002	Modular Homes The sales or use tax on modular homes will depend upon the type of contract the builder uses with the homeowner. The information in this letter applies specifically to modular homes and may not apply to other types of manufactured housing. Please see Sales and Use Tax Topics: Prefabricated Housing for information about other types of manufactured homes.
GIL-14-003	Domestic Jet Fuel Used in International Flights Colorado sales tax applies to aviation fuel sold in Colorado to commercial airlines even if the fuel is used for international flights.
GIL-14-004	Sales Taxability of Federal excise Tax on Jet Fuel Sales Sales tax is calculated on the price charged to the customer. However, if the purchaser is levied a direct federal tax, the sales tax calculation excludes the direct federal tax. A direct federal tax is a tax levied by the United States on the taxpayer, which, in the case of sales tax, is the purchaser.
GIL-14-005	Mail Order Sales - Rescinded
GIL-14-006	Alternating Current Electricity “Renewable energy” does not include burning natural gas and equipment used to capture thermal heat from the combustion of natural gas and does not qualify for the sales tax exemption for components used in the production of alternating current electricity from a renewable energy source.
GIL-14-007	Intrauterine Devices An IUD that releases hormones is considered a drug and is exempt if dispensed pursuant to a prescription by a licensed provider. An IUD, whether furnished to a patient pursuant to a prescription or not, will likely qualify for the exemption for materials furnished by a licensed provider as part of their professional services because only a licensed provider can insert an IUD and the patient leaves the licensed provider’s office with the IUD.
GIL-14-008	Membership Fees/Partial Refund When a membership fee includes both the transfer of tangible personal property and the provision of services (or intangibles) to the buyer, the entire transaction will generally be treated as taxable, unless the true object of the transaction is the acquisition of services (or intangibles) and the value of the tangible personal property is inconsequential. A partial refund of the purchase price presumably means that the buyer has used the property to some extent and, therefore, no refund of tax is allowed. However, if the refund is for property that has not been used, such as in the case of a canceled magazine subscription and the refund reflects the magazines not yet delivered, then a refund of tax for the partial refund of the purchase price is permitted.
GIL-14-009	Demand Charge A demand charge for the sale of electricity is taxable unless used for residential or industrial purposes.
GIL-14-010	Doing Business in Colorado - Rescinded
GIL-14-011	S Corporation Colorado Source of Income Subchapter S corporations are not subject to Colorado income tax. A Subchapter S corporation is not required to register an income tax account or withholding account with the Department. A Subchapter S shareholder may have an obligation to file an income tax return and pay Colorado income taxes if the person is a resident, or, if not a resident, the nonresident has any income from the sources described in §39-22-109. C.R.S.
GIL-14-012	Infusion Pumps An infusion pump that administers medications is exempt from Colorado sales and use tax if prescribed by a licensed provider. An infusion pump that administers medications is exempt from Colorado sales and use tax if prescribed by a licensed provider.
GIL-14-013	Local Sales Tax Collection on Equipment Leases - Rescinded
GIL-14-014	Hemodialysis Devices Hemodialysis devices may qualify for the durable medical equipment exemption.
GIL-14-015	Nexus for Sales and Income Taxes - Rescinded
GIL-14-016	Prepaid Fuel Charges for Rental Vehicles and Transportation Charges Prepaid gasoline and transportation charges relating to the lease of a motor vehicle may not be taxable so long as the charges are separately stated and optional. However, if the lessor’s transportation service is the only realistic transportation option, then those transactions may not be separable, and therefore may be taxable.
GIL-14-017	Separate Accounting The Department does not generally allow taxpayers to use separate accounting for an alternative apportionment methodology without extensive and sufficient demonstration as to why separate accounting more fairly reflects taxpayer's business.
GIL-14-018	Colocation Services A transaction involving the use of tangible personal property will generally be treated as a taxable rental of tangible personal property if the customer has control over the property. Conversely, the transaction will be treated as a non-taxable service if the provider has primary control over the property. The provision of private lines for intrastate telephone and telegraph services is subject to sales tax.
GIL-14-019	Income Earned by Nonresident Income derived from a tax lien certificate is sourced to Colorado because it is income from an ownership of an interest in real property in Colorado, and if the taxpayer purchases the lien for investment purposes, it is income derived from carrying on of a trade or business in Colorado and it is income derived from an intangible that is used in a trade or business in Colorado.
GIL-14-020	Marijuana RFID Tags RFID tags used by marijuana cultivators to track transfers of marijuana are not exempt either as farm equipment (§36-26-716(1)(d), C.R.S.) or as labels (§39-26-102(20), C.R.S.) and, therefore, are subject to sales or use tax when purchased by marijuana cultivators.
GIL-14-021	Lease Payments on Vehicles Used in Interstate Commerce A purchase of a new or used trailer, semitrailer, truck, truck tractor, or truck body for use exclusively outside Colorado or in interstate commerce and delivered by a Colorado manufacturer or dealer within Colorado, driven or moved by the buyer outside the state within thirty days after the delivery date is not subject to the sales tax at the time of purchase. If the company is required to designate Colorado as its base jurisdiction, the lease payments will likely be subject to sales tax.
GIL-14-022	Consolidated Freight Charges If retailer’s consolidated freight charge genuinely occurs after the product is purchased, then the charge appears to be a drop shipment and the transportation charge is not subject to tax. However, if retailer’s consolidated freight charge is assessed regardless of whether a product is being purchased or before the purchase is complete, then the charge appears to be a freight-in charge subject to tax. A transportation charge must fairly reflect the cost of transportation.
GIL-14-023	Fuel Tax on and Reporting Requirements of Propane A propane dealer is not required to be a special fuel licensee if it is certain no sales of its fuel will be used to propel a motor vehicle. Any licensed propane dealer who makes no motor fuel (or potential motor fuel) sales need not post the bond. Any licensed propane dealer must also report all sales of propane in COFTS.
GIL-14-024	Walk-in Bathtubs, Wheelchair Lifts, Modular Ramps In-home wheelchair mobility lifts and modular ramps provided pursuant to a prescription by a licensed provided are mobility enhancing equipment exempt from tax. A walk-in bathtub provided pursuant to a prescription by a licensed provider to someone with an illness or injury appears to be eligible for the durable medical equipment exemption.
PLR-13-001	Alternative Apportionment Company may file under an alternative method of apportionment as described in the letter.
PLR-13-002	Fees Related to Retrieving and Copying Medical Records Fees charged by a company in the business of retrieving and copying medical records of health providers for use by insurance companies, lawyers, and other third-parties are not subject to sales and use tax.
PLR-13-003	Computer Software and Computer Software Maintenance Contracts Software that is prepackaged, has a nonnegotiable license agreement, and is delivered on a tangible medium is taxable. Nonnegotiable software license agreements presented to the buyer on-line qualify as a tear-open, nonnegotiable license. Optional maintenance agreements are generally viewed as a service and are not subject to sales and use tax.
PLR-13-004	Installation, Repair and Inspection Charges and Payments to Third Party Subcontractors Company’s charges for installation, repair, or inspection of fire suppression system built into real property are subject to sales tax when billing clients on a time and material basis for work performed by a subcontractor. Company’s payments to subcontractors for this work are not subject to sales tax.
PLR-13-005	Retrieving and Copying Medical Records Fees charged by a company in the business of retrieving and copying medical records of health providers are not subject to sales and use tax because Company is providing a service.
PLR-13-006	Hardware and Software Used in the Provision of Intrastate Telephone Services The hardware and software purchased by Company is consumed by Company in the provisioning of services to clients and is not rented to clients. Company, who provides routing of intrastate telephone calls and other communications, is providing intrastate telecommunication services in Colorado.
PLR-13-007	Third Party Administrator of Insurance Claim Obligations Company’s purchases from suppliers are exempt wholesale purchases when Company resells the goods to the insurance companies. Therefore, Company must collect the applicable sales taxes from insurance companies.
PLR-13-008	Digital Imagery A static digital image sold under the various methods to various customers is the sale of tangible personal property for purposes of Colorado income tax apportionment. The sale is not a Colorado sale if the destination of the product is not in Colorado and Company is taxable in the destination state. Regardless of whether the destination state treats the sale of digital images to the federal government as sourced to the origination state (Colorado), Company must source a sale to the federal government to the destination state for Colorado apportionment purposes.
PLR-13-009	Consigned Merchandise Procured for Auction - Rescinded
GIL-13-001	Purchase Price that Includes Sales Tax Company that either provides an invoice for the sale and separately states the tax or has a conspicuous sign that shows the price of each item and separately states the amount of tax for each item offered for sale is in compliance with state law.
GIL-13-002	Sales Tax Refunds when an Exemption Certificate is Provided After the Sale The sales tax refund procedure outlined in the ruling, including the ninety day limitation on refunds by vendor, appears to be consistent with Colorado statutes.
GIL-13-003	Rental and Labor Charges If a retailer provides both taxable tangible personal property and non-taxable services, the taxability of the transaction is generally be determined on whether the “true object” of the transaction is the sale of a service or rental of tangible personal property.
GIL-13-004	Natural Gas and Electricity Subject to Special District Taxes Sales of fuel for industrial purposes are exempt from state, state-administered cities, counties, and special districts sales taxes.
GIL-13-005	Tear Serum Testing Modules The exemption for “blood test” does not include a test relating to tears produced by the eye, even though the tests are similar in some respects.
GIL-13-006	Resale Exemption Certificates for Drop Shipments Colorado allows Company, as a wholesaler, to accept sales tax licenses and exemption certificates issued by another state. If Company contracts to sell its product directly to the consumer and the consumer has an exemption certificate issued by another state, then Company is not required to collect sales tax from the consumer. However, if Company sells its product to a retailer and the retailer does not have a sales tax license or exemption certificate issued by Colorado or another state, then Company must collect sales tax from the retailer, even if the ultimate consumer has an exemption certificate issued by Colorado or another state.
GIL-13-007	Maintenance Agreements Company's client pays an IT services company to install free Microsoft patches and software upgrades, which are taxable standardized software, indicates that the true object is the sale of a nontaxable service rather than the sale of tangible personal property.
GIL-13-008	Fees Associated with Company-Owned Vending Machines The taxability of various fees charged by a vending machine operator whose vending machines are located at customers' locations are discussed.
GIL-13-009	C Corporation Income Tax Return A company engaged only in the solicitation of orders for other companies is liable for income tax if it has nexus in Colorado. Public Law 86-272 does not apply because company is engaged in a service and not the sale of tangible personal property.
GIL-13-010	Re-Rental of Equipment A company that leases equipment from a rental company and that uses its own employees or subcontracts with an independent contractor to operate the equipment cannot claim a resale exemption.
GIL-13-011	Plumber's Fees The method a plumber uses to invoice customers determines how sales and use tax is collected.
GIL-13-012	Sutures and IV Catheters Sutures qualify for an exemption but IV catheters do not.
GIL-13-013	Meal Included in 501(c)(3) Organization's $25,000 Proceeds Limit The net price of the dinner charged by a charitable entity for a fundraising event is included in the gross proceeds calculation of the $25,000 net proceeds exemption.
GIL-13-014	Software License Renewal A charge for a license renewal to use taxable software is subject to tax when the original license and software were delivered by a tangible medium but the renewal is delivered electronically with no transfer of tangible personal property because the license renewal is simply a charge for the continuing right to use taxable tangible personal property.
GIL-13-015	Fees and Charges Applied to Utility Bills The taxability of charges for connection, disconnection, late-payment and other items are discussed.
GIL-13-016	Fair Market Value Lease rate Between Related Parties - Rescinded
GIL-13-017	Seeds and Plants, Food and Dietary Supplements, Medical Supplies, Test Kits, and a Coupon Book Exemptions listed under §39-26-716, C.R.S. apply to commercial agriculture and livestock operations. Seeds and orchard trees that are not used for a commercial agricultural purpose are not exempt. Colorado excludes dietary supplements from the definition of food. See ruling for discussion of medical supplies, test kits and coupon books.
GIL-13-018	Entry Towers If entry towers are fixtures, their taxability will depend upon the type of contract Company uses with the owner. Contractors who charge the owner a lump sum amount do not collect sales tax from the owner, and, instead, pays sales tax when they acquire the building materials from the supplier or manufacturer. If a contractor uses a “time-and-material” contract with the owner, then the contractor must collect sales tax from the owner on the marked-up price of the entry tower, but not on the labor charges.
GIL-13-019	Sale of Domestic Jet Fuel for Commercial International Flights Colorado exempts from its fuel excise tax specially blended kerosene and other fuel products if they are exempt from federal aviation fuel taxes and used in aircraft operated by scheduled air carriers or commuter airline operators.
GIL-13-020	Electronically Delivered Software Electronically delivered goods, such as music, movies and books will still be viewed as taxable sales of tangible personal property after July 1, 2012, which is the effective date of amendments to the statutory definition of tangible personal property that exclude electronically delivered computer software. The amendments also exclude from tax charges by application service providers (ASP).
GIL-13-021	Public Law 86-272 A company will exceed the protections of P.L. 86-272 if an employee participates in activities that are considered more than activities closely related to solicitations. A company whose employee regularly accepts returns on behalf of company or regularly handles warranty claims will likely be viewed as having engaged in activities that exceed those protected by P.L. 86-272 and, therefore, subject the company to a Colorado income tax filing obligation.
GIL-13-022	Material Safety Data Sheet Reports and completed applications for governmental regulatory compliance activities are generally treated as a service. However, access to data, without any significant analysis of the data by Company, would generally be treated as a taxable digital product.
GIL-13-023	Lease of Medical Equipment A lessor of a “true lease” must pay sales taxes when it acquires the property if the lease term is three years or less, unless the lessor obtains prior permission from the Department to collect sales or use tax on lease payments. If the lessor uses a leases that is more than three years in duration or if the lease is a finance lease (regardless of whether it is more or less than thirty month duration), then lessor must collect sales or use tax on the lease payments, including the final “purchase” payment, and lessor does not have the option to pay sales or use tax when it first acquires the property.
GIL-13-024	Colorado Source Income Out-of-state accounting firm, which has a non-resident employee working remotely in Colorado, has nexus in Colorado if the employee's income exceeds $50,000, and, thus, the firm must allocate income to Colorado based on where the cost to perform the service is incurred.
GIL-13-025	Liquefied Petroleum Gas and Excise Taxes Liquefied petroleum gas used for home heating and other non-vehicle purposes does not fall within the definition of special fuels and, thus, are not be subject to the excise tax when used in such a manner. Because the tax must sometimes be paid before the ultimate use is established, only fuel that the distributor is reasonably certain will be used for home heating or other non-vehicle purposes may be sold without the excise tax. The Department will presume that propane delivered to a stationary tank located next to a residence that does not have any attachments to extract the propane, except for a delivery line to the home, is used solely for home heating and can be sold tax free.
GIL-13-026	Innovative Motor Vehicle Credit- Rescinded
GIL-13-027	Drilling Equipment - Rescinded
GIL-13-028	Bagged and Packaged Salads Bagged salads that do not include salad dressing or utensils qualify as food for home consumption. Bagged salads that contain all the ingredients of a prepared salad, including the salad dressing, and packaged salads in the shape of a bowl that contain a variety of lettuce, vegetables, salad dressing, a utensil, and may include meat, are “prepared salads” subject to tax.
PLR-12-001	Drug-Device Combination Products Product, which provides a framework over which bones grow and heal, is exempt as material furnished by a licensed provider as part of the provider's professional service to the patient, even if Product is purchased by hospitals, clinics or surgery centers. Product does not qualify for the durable medical equipment exemption and may not qualify for the prosthetic device exemption.
PLR-12-002	Affiliate Nexus - Rescinded
PLR-12-003	Charges for Services Charges for services, as described in the ruling, are not subject to sales or use tax, regardless of whether Company provides copy/print center services. Company’s charges for certain services would become subject to sales or use tax if Company does not separately state charges for tangible personal property used by Company to provide the services.
PLR-12-004	Bone Fracture Repair Product Product, which provides for bone void filling and fracture repair of the pelvis and extremities, is exempt as material furnished by a licensed provider as part of the provider's professional service to the patient, even if Product is purchased by hospitals, clinics or surgery centers.
PLR-12-005	Welding Gases and Tools Welding gases that are a fuel or energy source used in one of the enumerated industries are exempt from sales and use tax. Oxygen and inert gases used in welding are not exempt fuel gases. Hand-held torches and welding attachments, parts, and related tools are not machinery or machine tools exempt from Colorado sales and use tax.
PLR-12-006	Food and Nutritional Products- Rescinded
PLR-12-007	Subscription Fees A subscription fee for an online publication, which is a duplicate of Company's newspaper, is not subject to state and state-administered local sales and use taxes because it is still considered a newspaper. A subscription fee for access to stock screens, comparative performance ratings, and emerging stocks is a service and, thus, not subject to state sales or use tax.
PLR-12-008	Net Capital Gain from the Sale of Business Assets Taxpayer, a limited liability company, and its members cannot subtract from Colorado taxable income net capital gain resulting from the sale of the Taxpayer’s goodwill because the sale did not qualify as a sale of a ownership interest.
GIL-12-001	Prescription Reviews Pharmacist's review of patient’s medication record is a service and not subject to sales and use tax, unless the sale of service and tangible personal property are inseparable and the “true object” of patient is the report.
GIL-12-002	Orthotic Insert A shoe insert does not qualify for the prosthetic device exemption.
GIL-12-003	Lay-a-way Service and Cancellation Fees - Rescinded
GIL-12-004	Fluoride Varnishes and Streaming Videos to Dentist's Office - Rescinded
GIL-12-005	Internal and External Fabrication Labor Costs Fabrication labor costs performed by a fabricator on goods that the fabricator later converts to its own use are not included in fabricator’s use tax calculation; but fabrication costs are included in the sales tax calculation if the fabricator sells its fabricated goods at retail. Charges for fabrication services performed by a third party are included in the sales tax calculation of the fabricator’s retail sale of the fabricated goods to the ultimate consumer if the third party provides the fabricator with both the materials and fabrication services.
GIL-12-006	Application Service Providers Computer software that is used by a consumer via an ASP is not taxable computer software because the software is not considered to be delivered to the consumer in a tangible medium.
GIL-12-007	Transportation Charges Transportation charges that are inseparable from the sale of the good are taxable. Non-optional charges by wholesaler to retailer for drop shipment transportation of goods are not "freight-in" charges and are taxable if passed on to customer.
GIL-12-008	Sales to Native American Tribal Members and Tribal Governments - Rescinded
GIL-12-009	Durable Medical Equipment A medical device can qualify for the durable medical equipment exemption if it (a) can withstand repeated use; (b) is primarily and customarily used to serve a medical purpose; (c) is generally not useful to a person in the absence of illness or injury; and (d) is not worn in or on the body.
GIl-12-010	Tangible Personal Property Assembled in Colorado Colorado generally exempts from sales and use tax tangible personal property purchased by a manufacturer who integrates the property into a finished manufactured or processed product and holds the same for resale. This exemption applies regardless of whether the finished goods are sold inside or outside Colorado.
GIL-12-011	Reimbursable Expenses In general, reimbursable expenses are not subject to sales or use tax, unless the reimbursement is more properly viewed as a resale of taxable goods. However, if goods or services for which reimbursement is sought are more fairly construed as being consumed by a company rather than by the company’s client, then the reimbursement charge to the client is not treated as a resale of the goods or services.
GIL-12-012	Non-resident Leases of Passenger Cars The place where the vehicle is registered will determine which state and local taxes apply. If the person leasing the vehicle is, at the time the lease is executed, a non-resident of Colorado and immediately takes the vehicle to another state for use outside of Colorado, then Company/dealer is not liable to collect any taxes on the leased vehicle.
GIL-12-013	Training Classes for Corporations The provision of education and training is generally a non-taxable service. If tangible personal property is transferred from the educational service provider to the student, this may change the tax obligation. Company may need to remit income tax if it has sufficient nexus to be considered to be doing business in Colorado.
GIL-12-014	Full-Service Truck Washes Full-service truck washes are generally viewed as a non-taxable service. However, Company must pay use tax on supplies used within the wash process.
GIL-12-015	Manufacturing Equipment Exemption for Bakeries- Rescinded
GIL-12-016	Affiliate Nexus - Rescinded
GIL-12-017	Products for the Blind and Legally Blind The optical sales and services exemption explicitly excludes Braille reading devices. Products may qualify for the durable medical equipment exemption if the Braille devices serve a “medical” purpose and are dispensed and purchased pursuant to a prescription.
GIL-12-018	Special Mobile Machinery - Rescinded
GIL-12-019	Nexus - Rescinded
PLR-11-001	Direct Marketing Advertising Material - Rescinded
PLR-11-002	Financial and Non-Financial Institutions File Combined Report Affiliated corporations must file a combined report that includes both affiliated financial and non-financial institutions.
PLR-11-003	Authentication Services Sales of authentication services by means of a digital certificate are not subject to Colorado sales or use taxes.
PLR-11-004	Direct Mail Advertising Materials and Fulfillment Services Separately stated charges for the sale of direct mail advertising materials to a client who directs an advertising agency to instruct a printer to print and mail the material to customers located outside Colorado are not subject to sales and use tax. Separately stated charges of an advertising agency to its client for mailing fulfillment services are not subject to sales or use tax.
PLR-11-005	Collecting and Reporting of Adjustment Payments Company collects and reports sales and use taxes as set forth in the Discussion section.
PLR-11-006	Local Sales Tax - Rescinded
PLR-11-007	Software Application or Service Users true object is the use of the service provided rather than the lease of computer servers or software.
PLR-11-008	Food and Nutritional Products Products in question qualify as 'food' and, therefore, are exempt from state sales and use taxes if sold for domestic home consumption. These products are subject to local sales taxes of those local jurisdictions that have elected to levy sales and use taxes on food, unless the product is purchased with SNAP or WIC benefits.
PLR-11-009	Photovoltaic Energy Systems The purchase and lease of a photovoltaic energy systems by an entity other than the ultimate user is exempt from state and state-administered sales and use taxes under the Renewable Components exemption, except on an on-site monitoring system which is subject to sales and use taxes.
PLR-11-010	Partial Purchase Price Exemption A portion of the purchase price of a fuel used in manufacturing a tangible personal property is exempt from sales and use taxes if a portion of the fuel material is a necessary and desirable component of the manufactured product.
GIL-11-001	Lay-a-way and Partial Payments Plans Sales tax is not due on installment payments made on lay-a-way and partial payment plans until final payment is made.
GIL-11-002	Sales Tax on Personal Property Tax Charge for reimbursement for personal property tax incurred by lessor and separately stated on lease invoice is included in calculation of sales tax owed by lessee.
GIL-11-003	Auctioneer Administrative Fees Auctioneer fees that are not optional and viewed as inseparable from the sales transaction are included in the sales tax calculation.
GIL-11-004	Auctioneer's Sales Tax Obligation on Motor Vehicles An auctioneer who sells a motor vehicle on behalf of an owner is, unless an exception applies, a retailer and must collect and remit sales tax administered by the department.
GIL-11-005	Insulin Infusion Pumps An infusion pump and related disposable supplies are exempt as an “insulin measuring and injection devices” because the pump measures an insulin dosage and injects the insulin.
GIL-11-006	Manufacturer Coupons A retailer is reimbursed by the manufacturer for the amount of the reduction in purchase price; thus, sales tax applies to the full selling price before the deduction for the manufacturer’s coupon.
GIL-11-007	Freight-in Transportation Charges Transportation charges incurred in connection with transporting tangible personal property from the place of production or the manufacturer to the seller or to the seller's agent or representative are deemed “freight -in” charges and are subject to tax.
GIL-11-008	Bi-weekly Newspapers/Printers A newspaper distributed every two weeks does not qualify as a “newspaper” that is exempt from Colorado sales and use taxes. A printer must collect sales tax from the distributor of a non-exempt newspaper.
GIL-11-009	Rebates Programs offering consumers rebates for certain purchases are not deducted from the sales price when computing sales tax.
GIL-11-010	Liquor-Filled Candy Liquor-filled candy does not qualify as exempt food for state sales and use taxes and state-administered local sales tax purposes.
GIL-11-011	Services Related to Medical Devices Colorado does not impose sales tax on the provisioning of medical-related services.
GIL-11-012	Local Sales Tax on Internet Sales - Rescinded
GIL-11-013	Lease Payments In a 'true' lease, lessor is required to pay sales tax on a purchase from a vendor if the sale takes place in Colorado or pay Colorado use tax if its purchase from a vendor occurs outside Colorado. In a finance lease, the “lessor” must collect tax on the “lease” payments.
GIL-11-014	Electronically Delivered Newspapers and Magazines Monthly newspapers and magazines delivered electronically are subject to sales tax.
PLR-10-001	Carbon Dioxide and Tanks Supplier's sale of carbon dioxide to retailer for beverage carbonation is exempt wholesale sale, but sale of nitrogen as beverage propellant is a taxable retail sale. Supplier's rental charges for gas cylinders and storage tank are not exempt under container exemption.
PLR-10-002	Transportation Services Charges for transportation services are presumed exempt, but are taxable if seller does not separately state the charge for services or the service is inseparable from sale of taxable goods.
PLR-10-003	Patient Meals Medical facility is the consumer of patient meals prepared by food service company and facility must pay sales tax on the charges by the food service company, including charges for overhead and management fees.
PLR-10-004	Catheters Sale of catheter is not an exempt therapeutic device because it is not sold pursuant to a written recommendation. A healthcare provider is a provider of a service and cannot claim a resale exemption for the catheter by itemizing it on the patient's invoice.
PLR-10-005	Conversion of Association into Corporation Conversion of an association into a corporate sole does not create a sale or use tax obligation because the corporation is an exempt entity. Declined to address whether conversion constitutes a sale or is supported by consideration.
PLR-10-006	Acceptance Testing Acceptance testing by buyer under Colorado's Uniform Commercial Code is part of the sales transaction and is not a separate taxable use.
GIL-10-001	Daily Rental Fee - Rescinded
PLR-09-002	Apportionment of Income for Debit Card Company Debit card company is a financial institution and must apportion income based on market approach.
PLR-09-003	Hydraulic Fracturing Materials Company directed to collect state use tax and county sales tax on fracturing materials pending final decision in Noble Energy case.
PLR-09-004	Services Offered in Conjunction with Vehicle Rental Toll fee, roadside assistance, and carbon offset programs offered as an option with the rental of motor vehicles and separately stated on invoice are not included in calculation of sales tax.
GIL-09-001	Service Chare and Sales and Income Tax Nexus of Call Center Employing Independent Contractors - Rescinded
GIL-09-002	Sales of Building Materials Between Controlled Companies General discussion of application of sales and use tax for contractor and manufacturer who are controlled companies.
GIl-09-003	Taxability of FCC License and Coordination Charge General discussion of taxability of FCC license and coordination charge made in connection with sale of two-way radio.
GIL-09-004	Gift Baskets - Rescinded
GIL-09-005	Lessor or Seller of Motor Vehicle Must Collect and Remit Sales Tax on Sale of Motor Vehicle Lessor who sells motor vehicle to lessee at the expiration of a motor vehicle lease must collect and remit sales tax.
GIL-09-006	Gas Meter Reading Fee Fee charged by propane distributor is taxable if the service is not separable from sale of taxable sales of propane.
GIL-09-007	Room Rental to Church Members on Ski Vacations A sales tax exemption for a church does not apply to lodging by church members if primary activity was a ski vacation.
GIL-09-008	Nexus Created by Related Service Activity - Rescinded
GIL-09-009	Enteral Feeding Pump Feeding pump is not an exempt product.
GIL-09-010	Employee in Colorado Providing Service to Clients Outside Colorado A corporation must apportion to Colorado some of its income generated from services provided to customers outside Colorado because a portion of the cost of providing that service was incurred in Colorado.
GIL-09-011	Preparation of Sales Tax Return and Exemption Certificates An Internet service that prepares sales tax exemption certificates and sales tax returns is a non-taxable service.
GIL-09-012	Income Tax Nexus Company, whose only contact with Colorado is to make drop shipments of goods to recipients located in Colorado and to maintain a warehouse in Colorado, has nexus with Colorado for income tax purposes and is not protected by PL 86-272.
GIL-09-013	Medical Supplies General discussion of exemptions for medical supplies furnished by a doctor or sold to a charitable entity.
GIL-09-014	Service Charge for Call Center Employing Independent Contractors to Perform Work for Clients in Colorado General discussion of taxability of marked-up charges in cases of resellers, agents, brokers, third party contracts.
GIL-09-015	Dietary Supplements Dietary supplements are not exempt from sales and use tax.
GIL-09-016	Sales Tax Calculated as a Percentage Sales tax is calculated by multiplying the tax rate by the sales price. The department does not authorize retailers to use sales tax charts.
GIL-09-017	Sales of Propane and Firewood Sales of propane and firewood for residential purposes are exempt from sales and use tax. Retailer must provide reasonable documentation to establish sales are exempt.
GIL-09-018	Print and Mail Services / Data Transfer / Address Confirmation / Electronic Data Search General discussion of taxability of printing services.
GIL-09-019	Display Items Retailer may be liable for use tax for items pulled from inventory.
GIL-09-020	Nominal Purchase Price Taxable Nominal price paid by lessee to purchase vehicle at the expiration of finance lease is subject to sales or use tax.
GIL-09-021	Pet Recovery Products and Services Sales tax due on bundled sales of taxable products and non-taxable services.
GIL-09-022	Custom Disposable Medical Instruments General discussion of exemptions for custom disposable instruments for patients undergoing joint replacement surgery.
GIL-09-023	Obligation to File Returns if No Reportable Sales Company must register and file sales tax returns even if it does not have any sales tax liability for the reporting period.
GIL-09-024	Modular Home Modular home retailer liable for sales or use tax in Colorado.
GIL-09-025	Downloaded Documents Documents downloaded by customers from the Internet subject to sales or use tax.
GIL-09-026	Tax Returns and Remittance Requirements by Agent / Income Tax for Industrial Banks Sales tax license and registration must be under taxpayer's name, not agent of taxpayer who invoices and collects tax from lessees. Sale of finance lease accelerates sales tax obligation. General discussion of income tax regarding industrial banks.
GIL-09-027	Maintenance and Service Agreements Sales tax applies to maintenance and service agreements sold in connection with the sale of taxable goods, unless the agreement is in a separate contract or retailer obtains permission to exempt a percentage of sales price. If customer has no option but to purchase maintenance/service agreement as part of purchase of taxable goods, then the agreements are taxable.
GIL-09-028	Insurance Company Income Tax Nexus Insurance company does not create nexus if only contact is to register with the Secretary of State to do business in Colorado, but may have nexus if insurance law requires taxpayer to administer claims in state.
GIL-09-029	Oilfield Fishing Equipment - Rescinded
GIL-09-030	VoIP Intrastate Voice over Internet Protocol is a taxable telecommunication service.
PLR-08-001	Insurance Company Subject to Gross Premium Tax An insurance company is exempt from income tax because it is not "subject to" the gross premium tax, even though it is also exempt from gross premium tax.
PLR-08-002	Discounted Taxable and Nontaxable Bundled Goods and Services Sales tax is calculated on the retailer's costs to purchase the items when the taxable item is sold at below cost and bundled with non-taxable services.
GIL-08-001	Custom Software, Installation, Repair, Transportation, and Training Custom software, installation, repair, transportation, and training are generally non-taxable services.
GIL-08-002	Web-Hosting and Network Connectivity Charges Web-hosting and network connectivity charges by an out-of-state company when the servers are not located in Colorado are not taxable.
GIL-08-003	Retailer's Due Diligence on Wholesale Sales Supplier, who knows that some purchases by retailer are not for resale, must take reasonable steps to ensure sales are wholesale sales.
GIL-08-004	Scooters, Boot Walkers, and Heel Pads Sales of scooters, boot walkers and heel pads are not exempt therapeutic devices.
GIL-08-005	Merchandising Services Retailer providing service of merchandising is not taxable.
GIL-08-006	Cosmetic Medical Treatments Cosmetic products may qualify as material furnished by a licensed provider as part of the licensed provider's professional service to the patient.
GIL-08-007	For-Profit Day Care Providing Food, Plates, and Utensils A day care is providing a service and is the consumer of the food products and related accessories.
GIL-08-008	DVD Production Labor cost of third-party must be included in retailer's purchase price even if separately stated on the customer's invoice.
GIL-08-009	Contractors Use of Fixtures Discussion of factors considered in determining when tangible personal property becomes a non-taxable fixture to real property. Department will consider, among other things, how taxpayer treated the property on federal income tax return. Discussion of lump-sum and time and material construction contracts.
GIL-08-010	School Materials A business that offers home study programs and sells books and supplies is not selling a service. Therefore, the sale of books and other goods to customer are taxable.
GIL-08-011	Credits for Goods for Hosting a Sales Event and Shipping Charges Credits and discounts are distinguishable. Credits given by a direct marketer to a hostess for holding a sales event at the hostess' home are not allowed for purposes for calculating sales tax. The shipping charges are taxable because customers did not have any alternative but to use retailer's shipping services.
GIL-08-012	Propane Tanks and Prepaid Phone Cards Propane is exempt if sold for residential use. The retailer must take reasonable steps to ensure the sale is for an exempt use Discussion of taxability of customer supplied propane tanks and retailer supplied propane tanks. The distributor of prepaid phone cards is the consumer of card stock and is not entitled to the resale exemption. Retailer of the taxable goods or service purchased with card is responsible for collecting tax, not the card distributor.
GIL-08-013	Mattresses and Pillows Mattresses and pillows that are not specifically designed for therapeutic purposes are taxable even though they may be used for therapeutic purposes.
GIL-08-014	Surgical Equipment Discussion of exempt surgical equipment.
GIL-08-015	Reporting Excess Sales Tax Discussion on how to report excess tax collected on a sales tax return.
GIL-08-016	Software Updates and Upgrades Upgrades of taxable software are taxable. Software to correct bugs in original taxable software is not taxable.
GIL-08-017	Federally Funded Coupon Program Federal program offering consumers rebates for certain purchases is not deducted from sales price when computing sales tax.
GIL-08-018	Food Supplements, Soap, Deodorant, and Other Products Supplements and other products are taxable.
GIL-08-019	Printing and Mailing Material Discussion of taxability of print material and collection of local sales taxes.
GIL-08-020	Restocking Fees, Travel, Training and Rental of Equipment A retailer who charges a restocking fee has not refunded the full purchase price and is not entitled to a refund of any tax. Travel and training are not taxable. Rental of property is taxable.
GIL-08-021	Dietary Supplements and TENS Unit Dietary supplements are taxable. TENS is an exempt therapeutic device.
GIL-08-022	Federally-Funded Coupon Program Federal program offering consumers rebates for certain purchases is not deducted from sales price when computing sales tax.
GIL-08-023	Purchase Options on Leases, Insurance Premiums, Late Payment and Documentation Fees Purchase option at expiration of lease is taxable unless finance lease previously factored to a third-party. Insurance is taxable if not separable from lease. Late payment and documentation fee are inseparable and included in purchase price for sales tax calculation.
GIL-08-024	Alteration Services Alteration services are not taxable if separable from the sale of clothing.
GIL-08-025	Patient Tracking and Incentive System System for tracking patients and incentive program is a non-taxable service.
GIL-08-026	Medical Implants Discussion of whether screws and plates used for bone fractures qualify for the medical supply exemption, and exempt sales to charitable organizations and to government entities.
GIL-08-027	Signage, Crating, Installation, Transportation, City Permits, Subcontractors Sale of signage is taxable unless it becomes a fixture to real property or title passes prior to installation. Manufacturer's purchase of crating is exempt wholesale sale, but is a taxable sale to consumer. Installation is an exempt service. Transportation is generally exempt except for freight-in charges or if the charge is inseparable from sale of signs. City permits are not taxable. Repair work of subcontractor is discussed.
GIL-08-028	Nonresident Directors Subject to State Income Tax Nonresident corporate directors who attended two-day board of directors' meeting in Colorado incurred state income tax liability based on number of days performing duties in Colorado.
GIL-08-029	Leased Property - Rescinded
GIL-08-030	Fabrication Services Use tax does not include labor costs of Taxpayer or third-party fabricators who only provide services, but includes fabrication services of third-parties who also sell raw materials, even though the sale of such goods is in a separate contract.
GIL-08-031	Copying of Medical Records Service - Rescinded
GIL-08-032	Medical Vaccines and Testing Equipment Discussion of exemption for flu vaccine, urine test, and other medically-related items.
GIL-08-033	Sale of Condominium Furnishings Developer who purchased and paid tax on furnishings for condominium units that it owned and later sold to fractional interest owners is liable for sales tax on such sale and may be entitled to refund of tax paid to suppliers for such furnishings. Developer liable for sales tax when it rents on a nightly basis condominiums to third-parties.
GIL-08-034	Internet Game, Energy Drinks, and Samples - Rescinded
GIL-08-035	Hospital Beds and Wheelchairs General discussion of exemption for sale of hospital beds and wheelchairs.
GIL-08-036	Surgical Stapler and Forceps - Rescinded
GIL-08-037	Property Temporarily Used in Colorado The exemption from use tax for property used, stored, or consumed temporarily in Colorado applies only to individuals, not business entities.
GIL-07-001	Credit for Taxes Paid to Another State on Leased Vehicles Discussion of credit for taxes paid to another state on leases of motor vehicles if the legal incidence of tax falls on lessee, not lessor, even though lessor may collect the tax. Colorado does not require other state to give similar credit as a condition to receiving Colorado credit.
GIL-07-002	Energy Drinks Discussion of energy drinks as exempt food or taxable food supplement. Drinks that do not qualify as food under the federal food stamp program are not exempt food.
GIL-07-003	Crime Remediation Services Contract is for non-taxable services.
GIL-07-004	Dark and Lit Fiber Optic Cable Discussion whether dark and lit fiber optic cable used for telecommunication qualifies as taxable telecommunications service and whether cable is a fixture or tangible personal property.
GIL-07-005	Special Events Creating Nexus - Rescinded
GIL-07-006	Gift Card Stock Bundled with Software A sale by a distributor of card stock is not an exempt wholesale because distributor was the consumer, not reseller, of card stock. Software bundled with card stock may be taxable if not separable from sale of card stock.
GIL-07-007	Free or Discount Satellite Rental Satellite TV provider, which offered one month free rental of satellite receiver as an inducement to customers to purchase non-taxable satellite TV service and taxable rental of satellite box, is liable for use tax for the one month of free rental.
GIL-07-008	Nexus of Out-of-State Distributor - Rescinded
GIL-07-009	Lease of Water Treatment Solutions - Rescinded
GIL-07-010	Animal Management Software and Property - Rescinded
GIL-07-011	Drop Shipments and Wholesale Sale Documentation - Rescinded
GIL-07-012	Local Sales Tax - Rescinded
GIL-07-013	Rental of Equipment, Transportation Charges, and Repair Parts Discussion of taxability of various portable products supplied for drilling sites, including satellite, sewer, water, electrical systems, repair services and repair parts.
GIL-07-014	Meal and Entertainment Package with Various Vendors Discussion of sales tax reporting requirements of two retailers which jointly offered discount food and entertainment program.
GIL-07-015	Wheelchairs and Scooters - Rescinded
GIL-07-016	Consulting and Project Management Services Consulting and project management services are not taxable if separable from sale of surveillance products. Retailer cannot claim credit for taxes incorrectly paid another state.
GIL-07-017	Call Center Services Call center services are non-taxable services.
GIL-07-018	Employment Recruitment Services Employment recruitment services are non-taxable services.
GIL-07-019	Warranty Contracts for Leased Goods Contracts for service and maintenance of leased goods are not taxable if such contracts are in a separate contract from lease.
GIL-07-020	Installation and Transportation Charges Discussion of various aspects of retailer's sale, installation, and transportation of product.
GIL-07-021	Sales tax Refunds for Completed Transactions Buyer purchased taxable property then asked retailer to rebill the purchase to a third-party. Retailer is entitled to refund of sales tax for completed transactions only if retailer would have granted full refund to buyer even in absence of buyer's request to rebill transaction to a third-party.
GIL-07-022	Carbon Dioxide and Tanks The sale of carbon dioxide by supplier to retailer for soda fountain drinks is exempt. The lease of tanks for shipping carbon dioxide by supplier to retailer may be exempt.
GIL-07-023	Nexus of Out-of-State Distributor - Rescinded
GIL-07-024	Electricity Used in Manufacturing and Research and Development as Manufacturing Discussion of availability of exemptions for use of electricity, research and development, and statute of limitation for sales tax.
GIL-07-025	Medical Equipment External fixators and wires are exempt medical equipment.
GIL-07-026	Nexus for Conducting Sales Seminars - Rescinded
GIL-07-027	Consumer Surveys and Service Quality Reports Discussion of criteria for determining whether consumer surveys and service quality reports are non-taxable services or sales of property discussed.
GIL-07-028	Documentation Requirement for Exempt Sales Retailer must ask to view the sales tax license, determine that license is active, and that buyer's statement that the purchase is for resale is reasonably consistent with the buyer's business.
GIL-07-029	Sales Tax Collection Requirement of a Multi-Level Marketing Company Sales tax is calculated on discounted prices to consumer and representatives, not on suggested retail prices. A multi-level marketing company is retailer. Company is ultimately liable for unpaid sales tax. Representatives do not need sales tax licenses.
GIL-07-030	Nexus of Application Service Provider - Rescinded
GIL-07-031	Drop Shipments - Rescinded
GIL-07-032	Drug Test Kits - Rescinded
GIL-07-033	Sales Tax Calculation on Price Adjustments The distributor is allowed to calculate sales tax on the price that is later adjusted to reflect the discounted price of the product that is sold as a sample as part of marketing effort with retailer.
GIL-07-034	Cholesterol and Blood Testing Kits Cholesterol and blood testing kits are not taxable.

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