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.

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.

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.  

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.