Treasury Division
Frequently Asked Questions
Sales Tax - Industry
I am a contractor. Do I pay sales tax?
If you are a
construction contractor (general or sub), and you install personal property to
real property or affix it to any structure that is attached to real property,
you are considered the ultimate consumer of the product and therefore are
required to pay the appropriate sales tax.
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I manufacture a product; do I have to collect Denver sales tax on my labor?
Denver
sales tax is due on the aggregate sale amount of the
product being sold, without a deduction for fabrication labor.
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I repair equipment. Do I have to charge Denver sales tax on the repair transaction?
Denver
sales tax is due on the materials charge indicated on the invoice.
If labor and materials are not stated separately on the invoice,
Denver
sales tax must be charged on the entire amount charged for the repair
transaction. If the repair was an extended warranty repair and the customer was
not charged, the parts used would be subject to
Denver
use tax.
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My business is in an enterprise zone. Can I get an exemption from Denver sales tax?
The
State of
Colorado
allows certain state sales and use tax exemptions for businesses located in
enterprise zones. However, there are
no such exemptions from
Denver
sales and use tax.
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