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Helpful Tax Tips

Spotlight On: Updated Colorado Sales/Use Tax Rates effective 1/1/25!

The DR 1002, Colorado Sales/Use Tax Rates, is updated on January 1st and July 1st of each year and provides:

  • Current Colorado sales and use tax rates throughout the state
  • Service/Vendor fee information
  • Exemption information
  • RTD/CD & Special District tax rates
  • City and county tax rates, which are state-collected
  • Contact information for home rule self-collecting cities/jurisdictions

NOTE: The total tax rate for any jurisdiction must be computed by adding all taxes applicable to that jurisdiction.

View DR 1002 information here

Previous Tax Tips

Getting to Know…Letter Rulings!

Taxpayers may request a general information letter or private letter ruling for any tax administered by the Taxation Division.

General Information Letters:

  • Cover tax issues not explicitly addressed in other Department publications

Private Letter Rulings:

  • Are specific determinations of tax consequences of a proposed or completed transaction
  • Are generally binding upon the Department
  • May only be relied upon by the taxpayer to whom they are issued

View Letter Rulings here

View this week's tax tip here

SUTS is an online portal that allows you to:

  • File all state-collected and participating home rule cities on a SINGLE return spreadsheet with a SINGLE payment
  • Calculate tax rates for items with differing tax rates
  • Keep a record and history of your changes

IMPORTANT: If you file using SUTS, you must also pay through SUTS.
A common question is, what is the difference between Revenue Online and SUTS? 

  • The main difference between the two is:
    Revenue Online allows you to file sales tax returns for state-collected jurisdictions
  • SUTS allows you to file returns for BOTH state-collected and home-rule cities on ONE return

Access SUTS

View this week's tax tip here

Getting to Know the Retail Delivery Fee (RDF)!

Colorado imposes a fee on deliveries made by motor vehicle to a location in Colorado, with at least one item of tangible personal property subject to state sales tax. Here are some highlights:

  • The fee is charged to the purchaser and collected by the retailer, who is responsible for remitting it to the Department
  • The due dates for filing and remitting the fee are the same as the retailer’s due dates for filing sales tax returns
  • Sales that are exempt from state sales tax are also generally exempt from the fee
  • Each sale for delivery is considered a single “retail delivery” regardless of how many shipments are needed to deliver the items purchased
  • Retailers who collect the fee must file and remit the fee to the Department through Revenue Online or by filing form DR 1786 - Retail Delivery Fee Return
  • New accounts and retailers with $500,000 or less per year in retail sales are exempt from collecting and remitting the fee
     

NOTE: The Retail Delivery Fee may increase each July to adjust for inflation.

Learn more about the RDF here

View this week's tax tip here

Sales Tax Filing Frequency Changes Effective January 1, 2025!

Sales tax filing frequencies are determined by the amount of sales tax collected monthly and are currently as follows:

  • $15 or less per month - Annually
  • Under $300 per month - Quarterly
  • $300 or more per month - Monthly

Effective January 1, 2025, sales tax filing frequencies will be:

  • $15 or less per month - Annually
  • Under $600 per month - Quarterly
  • $600 or more per month - Monthly

Learn more about sales tax filing frequencies here

View this week's tax tip here

The Difference Between Physical and Non-Physical Locations!

A PHYSICAL location is: Where you have a physical presence

  • Examples include a brick-and-mortar store, warehouse, office, or distribution center
  • A license fee and application are required for each location
  • You must ALWAYS file a sales tax return for physical locations regardless of the amount of sales

A NON-PHYSICAL location is: Anywhere in Colorado where you deliver a taxable good

  • A non-physical site is required for all deliveries and shipments, including those made in the same jurisdiction as the physical location

IMPORTANT: A sales tax return is required for each filing period, regardless of sales, for both physical and non-physical locations.

Learn more about physical & non-physical locations

View this week's tax tip here

The Difference Between Revenue Online (ROL) & the Sales & Use Tax System (SUTS)!

Revenue Online (ROL) is an ADMINISTRATION portal that allows you to:

  • File & pay sales tax for state-collected jurisdictions only
  • Add non-physical locations to your account
  • Find sales & use tax rates
  • Update your account information
  • And more

The Sales & Use Tax System (SUTS) is a FILING portal that allows you to:

  • File all state-collected sales tax AND all participating home rule cities on a single return with a single payment

IMPORTANT: If you file using SUTS, you must also pay using SUTS

Learn more about Revenue Online & SUTS

View this week's tax tip here