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A business must submit a Claim for Refund form within 3 years (36 months) after the return was filed. Include a detailed explanation of how the error occurred, a copy of any invoice or credit memo involved, a copy of the sales journal showing how the sales were summarized and what amounts were originally reported and paid to Denver, and any other supporting documentation. Individuals or businesses that are claiming sales taxes overpaid to a vendor on a purchase must submit a Claim for Refund form within 60 days of the purchase. Include a copy of the appropriate sales receipt(s).

The Denver sales tax ordinance provides that the tax must be paid to the vendor. The vendor then provides a receipt, showing the tax was paid, to the purchaser. The purchaser can file a Claim for Refund, but must do so within 60 days of the purchase.

If another jurisdiction’s tax was properly imposed on a purchase, the amount of Denver consumer use tax due is the difference between what you would have paid if the purchase was made in Denver and the tax amount you actually paid, but never less than zero.

Example : Assume a purchase was made in a Colorado city on the western slope; sales tax at the combined rate of 4.9% tax was collected; and the item purchased was brought to Denver and used by a business in Denver. If the same item had been purchased in Denver, the combined tax rate would have been 7.65%. To calculate the Denver use tax due:

  • Subtract the 4.9% paid from the 7.65% due. 
  • The rate still due to Denver would be 2.75% (less than the normal 3.65%). 
  • Multiply the cost of the purchase by 2.75% to determine the amount of Denver use tax due. 

Note : If the combined tax actually paid is more than what would have been due in Denver, no Denver use tax is due, but no refund or credit will be given. Also, the above formula can never result in a Denver tax liability in excess of 3.65%.