The retail sale or purchase of animals is taxable like any other
tangible personal property, unless the transaction is otherwise exempt. Specific exemptions are provided for cattle,
sheep, lambs, swine, and goats. In
addition, horses used for breeding purposes are exempt.
The purchase of pet food and prescription drugs for animal use is
subject to sales or use tax. The DRMC
exemptions for food and prescription drugs for human consumption do not extend
to animals.
The sale of prescription drugs, vaccinations, and injections for
animal use is subject to sales tax when the charge is separately stated on the
customer’s invoice. A veterinarian is
responsible for collecting Denver sales tax on these charges when separately
stated on the invoice to its customer.
If the veterinarian chooses not to itemize charges for drugs,
vaccinations, and injections on the invoice to its customer, use tax would be due
on the purchase of these items, with credit being allowed for any properly
imposed sales tax previously paid.
Materials and supplies purchased by veterinarians are subject to
use tax when the properly imposed sales tax is not collected by a licensed
vendor.
1.
Happy
Hound Kennel sells five registered puppies to a pet store that has a Denver
sales tax license. This transaction
meets the definition of a wholesale sale and would not be subject to sales or
use tax. However, when the pet store
sells the puppies to individuals, each of the sales is subject to tax.
2.
Doggie
Drugs, a distributor of animal medications, makes sales to Critter Doctor, a
veterinarian located in Denver. Because
Critter Doctor is licensed to collect Denver sales tax, its purchases of drugs
and medications are made for resale.
Since the bill Critter Doctor gives to its customers itemizes the drugs,
including those administered as an injection or vaccination, sales tax is
collected from the customer and remitted to the City.
3.
Well
Supplied, a distributor licensed to collect Denver tax, sells veterinary
supplies, gowns, gloves and syringes.
Your Best Friend Veterinarian, located in Denver, purchases these
non-resale items for its own use in rendering its services. Well Supplied would collect sales tax on
sales made to this customer. However,
if Well Supplied does not collect the Denver tax, Your Best Friend Veterinarian
would remit use tax on these purchases.
RELATED
TAX GUIDE TOPICS:
Livestock, Livestock Bedding/Feed
Horses
Feed and Seeds
* DRMC Section 53-25(1).
Imposition of Tax - Sales
* DRMC Section 53-26(5). Exemptions –
Livestock - Sales.
* DRMC Section 53-26(6). Exemptions –
Feed/Seeds - Sales.
* DRMC Section 53-96(1). Imposition of Tax
- Use.
* DRMC Section 53-97(5). Exemptions –
Livestock - Use.
* DRMC Section 53-97(6). Exemptions –
Feed/Seeds - Use.
The complete Denver Tax
Guide, the Denver Revised Municipal Code (DRMC), tax forms, and other related
information and forms are available on-line at www.denvergov.org/treasury.
THE
ABOVE INFORMATION IS A SUMMARY IN LAYMAN'S TERMS OF THE RELEVANT DENVER TAX LAW
FOR THIS INDUSTRY OR BUSINESS SEGMENT. IT IS NOT INTENDED FOR LEGAL PURPOSES TO
BE SUBSTITUTED FOR THE FULL TEXT OF THE DRMC AND APPLICABLE RULES AND
REGULATIONS.
Revised 08/03