About Consumer Use Tax
Every state that has a sales tax also has a "companion" tax for purchases made where sales tax is not charged. In Colorado, this companion tax is called Consumer Use Tax.
To be compliant with tax laws, you must report and pay consumer use tax when sales tax is not collected by the seller on a taxable product. This requirement applies to purchases made by both individual consumers and businesses in Colorado. Examples of taxable products (often referred to as "goods") are electronics, appliances, furniture, home accessories, jewelry/watches, clothing, shoes, sports equipment, or any other tangible personal property.
How Do I Know if I Paid Sales Tax on My Purchase?
Check your invoice, receipt, or order confirmation to see if there is a line that states whether sales tax was collected on your purchase. Typically, sales tax is listed just under the Sub-Total on a receipt or after the Shipping Cost on a order confirmation. If you are unsure, contact the company's customer service team or speak with a sales associate to verify whether they collect sales tax on behalf of their customers.
Consumer Use Tax Forms
DR 0252 - Consumer Use Tax Return
DR 0251 - RTA Special District Consumer Use Tax Return
DR 0104US - Consumer Use Tax Reporting Schedule (Include With Your Individual Income Tax Return)