Treasury Division
Frequently Asked Questions
Sales Tax
Since the voters of the City and County of Denver approved an increase in Sales and Use tax, when do I need to start collecting the new amount?
The new Sales and Use tax rate of 3.62% will need to be collected beginning January 1, 2007. The Sales and Use tax return you complete for December 2006 will still reflect the 3.5% tax rate even though you may file that tax return in January 2007. The first tax return you file that will reflect the 3.62% Sales and Use tax rate will be the January 2007 return.
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My business makes sales in Denver but we are located in another state. What is the requirement for collecting Denver sales tax?
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Businesses
located outside the City and County of Denver are required to be licensed to
collect and remit the Denver Retailer's Use Tax on taxable Denver retail sales
if they are engaged in business within Denver, unless provided otherwise by the
U.S. Constitution.
"Engaged
in business in the City" includes performing any activity in Denver in
connection with the selling, leasing, or delivering in the City of tangible
personal property by a retail sale for use, storage, distribution, or
consumption within the City.
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How long do I have to keep my sales tax records?
You
need to keep the supporting invoices and records pertaining to the
Denver
sales tax return for 4 years following the due date of the return or the
payment of the tax, whichever is later.
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What sales tax should I charge when I deliver items to customers to their residence or business location outside Denver?
You
need to charge the appropriate tax that applies to the location to which you are
delivering the item, but to do so, you may need to have a tax license with other
taxing jurisdictions in order to remit the collected tax.
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How can I change the address on my sales/use tax account?
You
can:
·
Call the Taxpayer Service Unit at 720-865-7075
·
Include a letter containing the change of address with
your
Denver
sales/use tax return in your remittance envelope.
·
Fax the change to 720-865-7080
·
Email the change to treasinfo@ci.denver.co.us
NOTE: Include
your account number on all requests.
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How do I verify a Denver sales tax license account?
You
can call the Taxpayer Service Unit at 720-865-7075.
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If I paid a sales tax on business personal property, have I satisfied my requirements for sales/use taxes and personal property taxes?
You
have met the requirements for the sales/use tax if
Denver
sales tax was paid or the difference between the legally imposed and the
combined Colorado/Denver/District tax rate has been paid.
You have not met the personal property tax requirement, because that is a
different tax payable to the
County
Treasurer
every year on the valuation of the property.
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What can I do if I can’t find the answer to my tax question?
If
the answer to your
Denver
tax question cannot be found on the Web site www.denvergov.org/treasury,
call the Taxpayer Service Unit at 720-865-7075, or e-mail us at treasinfo@ci.denver.co.us.
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Why are some food sales taxed at 4% and others not taxed at all?
Food or
beverage purchased in
Denver
that is prepared (i.e. in a restaurant), or ready-to-eat (i.e. deli food in a
supermarket) are subject to
Denver
sales tax of 4%. Only food or
beverage purchased in
Denver
for domestic home consumption is exempt from
Denver
sales tax.
NOTE:
Denver
sales tax of 4% is due on all alcoholic beverages purchased in
Denver
whether by the container or by the drink.
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Is a sale/leaseback transaction taxable in Denver?
Yes.
The amount charged on the subsequent leaseback would be taxable.
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Why doesn’t the State of Colorado collect Denver sales/use taxes?
Denver
is a Home
Rule city. As such, it has elected
to administer and collect its own local sales and use tax.
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How do I get information relating to State sales taxes?
You can go to the Colorado
Department of Revenue's Web site at www.revenue.state.co.us/main/home.asp, or call
(303) 238-FAST (3278).
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Does the State of Colorado have a website?
Yes
it is www.colorado.gov.
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How do I contact the State of Colorado, Tax Division?
By mail:
Colorado Department of Revenue
Taxpayer Service Division
Denver
,
CO
80261-0013
By phone:
(303) 238-FAST (3278)
Online:
www.taxcolorado.com
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