Helpful Tax Tips
Spotlight On: Licensing Responsibilities!
Always renew your license on time to keep it active and ensure information (i.e. your business address) is up to date with the Department.
More helpful tips:
- Retail sales tax and wholesale licenses expire on December 31st of odd numbered years. This means licenses are renewed at the beginning of each even numbered year.
- Use Revenue Online or form DR 0594 - Renewal Application for Sales Tax License to renew your license.
- If your business moves, your license does NOT move with it. Use form DR 1102 - Address or Name Change Form to report the address change to the Department.
- If you close your business, use form DR 1108 - Business Tax Account Closure Form to report the closure.
NOTE: Closing your business with the Colorado Secretary of State does NOT automatically close your account with the Department.
View this week's tax tip here
Previous Tax Tips
Spotlight On: Destination Sourcing Rules!
Any retail sale that is made in Colorado is subject to Colorado taxation. In general, a retail sale is sourced to the location where the purchaser takes possession of the purchased property in accordance with the following rules:
- If the purchaser takes possession of the purchased property or first uses the purchased service at the seller’s business location, THEN the sale is sourced to that business location.
- If the property or service is delivered to the purchaser at a location other than the seller’s business location, THEN the sale is sourced to the location where the purchaser receives the purchased property or first uses the purchased service.
- If the purchaser requests delivery of the property or service to another person, as a bona fide gift from the purchaser, THEN the sale is sourced to the location where that person takes possession of the purchased property or first uses the purchased service.
Learn more in the Colorado Sales Tax Guide, Part 1
View this week's tax tip here
Spotlight On: Whoooooo is DORi?
DORi, which stands for Department of Revenue Interactive, is the Department’s programmed interactive chatbot designed to help answer common taxpayer questions and direct taxpayers to the right place.
Get to know DORi:
- DORi is the bright orange tax owl that roosts at the top of the Revenue Online home page
- To interact with DORi:
- Select DORi at the top of Revenue Online
- Type in a tax keyword or phrase for which you would like more information
- Select the blue arrow or hit ‘enter’
- DORi is constantly evolving, but is NOT a live person. Therefore, DORi cannot answer account-specific questions and does NOT provide live help through the chat
Visit DORi at Revenue Online
View this week's tax tip here
Spotlight On: Colorado Contractors 101!
In Colorado, the term “contractor” refers to any entity or person (including individuals, partnerships, firms, associations, corporations, trusts, estates, or joint ventures) that performs construction work on real property for another party under the terms of an agreement. Examples include, but are not limited to:
- Building contractors
- Road contractors
- Grading and excavating contractors
- Electronic contractors
- Plumbing and heating contractors
- Any person engaged under a contractual agreement in the construction, reconstruction, or repair of any building, bridge, or structure
- Landscaping contractors
NOTE: Anyone working for a salary or wage is NOT a contractor.
Want to learn more? Check out Construction Contractors- Sales 6
View this week's tax tip here
Spotlight On: Intercepted Refunds!
If a taxpayer owes a past debt to an agency of the State of Colorado, the income tax refund or PTC Rebate could be intercepted to satisfy the debt. When a refund is intercepted, the Department of Revenue will send a letter explaining:
- Which agency initiated the intercept
- The amount of the refund intercepted
- Who to contact for further information
Learn more about Intercepted Refunds
View this week's tax tip here
Spotlight On: Sales Tax Recordkeeping Requirements You Can’t Ignore!
In Colorado, businesses MUST keep and preserve any books, accounts, and records of sales with the correct amount of sales tax calculated for a MINIMUM of three (3) years. This isn't just a suggestion; it's the law.
Additionally, every retailer must also keep and preserve all invoices of goods and merchandise purchased for resale for a MINIMUM of three (3) years.
Records MUST include the:
- Date the item was purchased
- Price of the item
- Information used to determine the correct amount of sales tax was charged
NOTE: If a sale was exempt from tax (meaning no sales tax was charged), you need to record WHY it was exempt.
Want to learn more? Check out Part 9 of the Colorado Sales Tax Guide. It's got all the details on record-keeping requirements
View this week's tax tip here
Spotlight On: 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 here
View this week's tax tip here