Consumer Use Tax | Retailer Reporting Requirements

Colorado adopted a Use Tax in 1937, which requires individuals and businesses to pay use tax on tangible personal property purchased from out-of-state vendors if the item is used, stored, or consumed in Colorado. Consumer use tax must be paid by individuals and businesses for tangible personal property used in Colorado for personal or business purposes (not to be resold) when tax was not paid at the time of purchase. If you have purchased an item without paying sales tax or received an Annual Purchase Summary from an online retailer visit the Use Tax for Businesses web page for more information.

The due date for businesses and other legal entities that owe consumer use tax depends upon the amount of use tax owed. If the business or other legal entity accrues less than $300 of total consumer use tax over the course of a year, the business or other legal entity must file an annual use tax return, due January 20th of the following year, to report and pay the tax due. If the cumulative tax due at the end of any month is in excess of $300, the business or legal entity must file a return by the 20th day of the following month. The business or legal entity can either file electronically at Colorado.gov/RevenueOnline or by completing and submitting a Consumer Use Tax Return.

Non-collecting retailers are encouraged to review Department rule 39-21-112(3.5) regarding notice and reporting requirements. Click here to download the sample file layout for the annual customer information report. The report can be submitted via the Revenue Online system under the "Additional Services" section.