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					  Colorado Department
      of Revenue
Contractor/Manufacturing Class
     Taxpayer Service Division
      publiceducation@spike.dor.state.co.us
                      Agenda
            •   Introduction
            •   Types of Contractors/Contracts
            •   Tax-Exempt Projects
            •   Sales/Use Tax Exemptions
            •   Miscellaneous Taxable/Non-Taxable Items
            •   Transportation Charges
            •   Rentals/Leasing
            •   Manufacturers
            •   Deliveries
            •   Sales Tax Account Information
            •   Sales/Use Tax Examples
            •   Contacts/Resources
            •   Forms/FYI Publications
February 2008            Colorado Department of Revenue   Slide #2
                Introduction
                • Class Time
                   • Breaks
           • Food and Beverage
               • Rest Rooms
               • Cell Phones
                 • Questions
          • Handouts and Forms
        • Businesses in Attendance

February 2008      Colorado Department of Revenue   Slide #3
     Contractor
  Sub-Contractor
Lump-Sum Contractor
 Retailer-Contractor
  Building Permits
Contractor/Subcontractor
• The definition of “contractor” for Colorado sales tax
  purposes is any entity/person who bids for and performs
  work on real property for another party pursuant to an
  agreement.

• A “contractor” is a person who performs services not only
  for new construction, but also the alteration,
  improvement, or repair of real property.


• For state sales tax purposes, “subcontractor” has the
  same meaning as contractor.


• FYI Sales 6


February 2008           Colorado Department of Revenue        Slide #5
       Examples of Contractors
Contractor includes but is not limited to:
  – building contractors;
  – foundation, curb, parking lot contractors;
  – painting, stucco, brick/other finish contractors;
  – roofing contractors;
  – road, grading and excavating contractors;
  – electrical, plumbing and heating/air conditioning
     contractors.
  – Persons involved in cabinet, casework, sheet
     metal, glazing and other such trades when they
     construct materials on site for permanent
     incorporation into real property.



February 2008         Colorado Department of Revenue    Slide #6
        Lump-Sum Contractors
• Contractors performing only lump-sum contracts on
  real property should not obtain a Colorado sales tax
  license.
• Lump-sum contractors must pay all applicable
  Colorado sales and use taxes on all purchases of
  building supplies, construction materials and all other
  tangible personal property.
• The only non-taxable purchases of building materials
  are those for construction work for tax-exempt
  organizations.
• Lump-sum subcontractors will not be issued a sales
  tax license by the Colorado Department of Revenue.




February 2008          Colorado Department of Revenue       Slide #7
           Lump-Sum Contracts
• All supplies and materials are taxable to the
  contractor, either through sales tax paid to the
  vendor or use tax paid by the contractor.

• The contractor is liable for sales/use tax on all
  supplies and materials
   – Becoming part of the real property,
   – Not becoming part of the real property,
   – As well as on all tools and equipment.

• Local use taxes are paid in conjunction with
  building permits.


February 2008         Colorado Department of Revenue   Slide #8
     Time & Material Contracts
• The contractor who invoices separately for labor
  and materials must have a sales tax license and
  charge his/her customer applicable taxes on the
  materials.

• If materials are not separated from labor, sales tax
  applies to entire invoice.

• In addition, this type of contractor is liable for
  sales/use tax on all supplies as well as on tools
  and equipment that do not become part of the real
  property construction.


February 2008         Colorado Department of Revenue     Slide #9
                Retailer-Contractor
• A retailer-contractor serves as the retail merchant of the
  same materials/goods that are used in the course of
  executing a “real property” contract. e.g., One who
  purchases property for resale, repair work, time and
  material jobs, as well as lump sum construction contracts.

• A retailer-contractor buys all materials “tax-free” because
  the purpose for which the purchases will be used is              Contractor
  unknown at the time of purchase.                        Vendor

• The purchases which are later sold as a part of the “sales”
  business will be subject to standard sales tax laws and
  regulations, and are subject to tax on the full selling price
  including all markup charges passed on to the buyer.
• The purchases that are later used in contractual real
  property construction are subject to tax on the full
  purchase cost to the contractor.
• A retailer-contractor has a significant burden to keep good
  books and records, since he/she may be operating two
  distinct types of businesses.
February 2008               Colorado Department of Revenue          Slide #10
  Complete Units & Installation
• Retailer-contractors who sell complete units with an
  agreement for installation of the units must collect
  sales taxes from the purchaser on the sales price of
  the units.
• Such sales are not building contracts; they are retail
  sales.
• The term “unit” includes: stoves, refrigerators,
  furnaces, air conditioners, washing machines,
  dryers, carpets, electrical fixtures, ready-made
  cabinets, storm doors and windows, screens, sod
  and similar items.
• Installation charges are not taxable, if listed
  separately from the sales price of the unit on the bid
  proposal and invoice.

February 2008          Colorado Department of Revenue      Slide #11
                Building Permits
 • On the sale of construction materials, if the
   purchaser presents to the retailer a building
   permit showing a use tax for the municipality
   has been paid - Sales tax is not due for the
   municipality.

 • If the purchaser presents to the retailer a
   building permit that proves a use tax has
   been paid to the county - sales tax is not
   due for the county.


February 2008        Colorado Department of Revenue   Slide #12
Tax-Exempt Projects
Sales Tax Exemptions
Miscellaneous Taxable Items
        Tax-Exempt Certificates
 • Form DR 0172 – Contractor Application for
   Exemption Certificate.
 • For construction contracts with tax-exempt
   organizations (e.g., federal, state, local governments,
   schools, and religious, charitable organizations.)
 • Certificates begin with “89”. Please use the next five
   numbers following it for any applications submitted for
   future projects. This should be your permanent
   number.
 • Only the general contractor will be issued the
   contractor exemption.
 • Copies of the exemption certificate should be
   distributed to the sub-contractors on the project.
 • Certificate Fee: Free.


February 2008          Colorado Department of Revenue        Slide #14
          Tax-Exempt Materials
• Building materials for construction work on property
  owned by tax-exempt organizations may be purchased
  tax free.
• Building materials for leased buildings may also be
  purchased tax free if paid for by the tax-exempt
  organization.
• The sales/use tax exemption applies to materials that
  become part of the structure, highway, road, street or
  other public works owned and used by the tax-exempt
  organization.
• The purchase of rental equipment, supplies, and other
  materials by the contractor is taxable.



February 2008           Colorado Department of Revenue     Slide #15
Cleanroom Equipment Exemption
• Purchases made on or after July 1, 2007, but prior to
  July 1, 2017, of machinery that comprises a
  cleanroom are exempt from state, local, and special
  district sales and use tax when the cleanroom will be
  used to produce tangible property (TPP.)

• Examples of TPP: computer components,
  microprocessors, blank and written software media,
  biotechnological products, nanotechnological
  products, photonic products, and pharmaceuticals.
  39-26-722, C.R.S.

• FYI Sales 73

February 2008         Colorado Department of Revenue      Slide #16
                  Containers
• Sales of containers, labels, tags, cartons, packing
  cases, wrapping paper, twine, wire, pallets, skids,
  bags, shipping cases, bottles, cans, similar articles
  and receptacles sold to manufacturers, producers,
  wholesalers, jobbers, retailers, or other licensed
  vendors, for use as containers, labels, and furnished
  shipping cases for articles sold by them, are not
  taxable.

• Deposits on returnable containers are not subject to
  sales tax.

• FYI Sales 21
February 2008         Colorado Department of Revenue      Slide #17
      Gas and Electric Services
• Gas and electric services are taxable when furnished for
  commercial consumption, but are not taxable when sold
  for resale or for any of the uses set out in 39-26-102(21)
  C.R.S.

• Persons performing services, as well as stores, office
  buildings and other commercial users, are not industrial
  users and are required to pay sales tax.

• Examples: electricity used to light a restaurant is taxable;
  electricity used by a restaurant to prepare meals is
  exempt; electricity used to light chicken houses to
  stimulate egg production is exempt; electricity used to
  light an industrial plant to enable it to produce is exempt.

• FYI Sales 30

February 2008            Colorado Department of Revenue          Slide #18
          Industrial Utility Usage
• The utilities consumed in manufacturing and processing must be used
  in the continuing business activity of producing or processing tangible
  personal property.
• The following uses of utilities, which include electricity, coal, gas, fuel
  oil, coke, or nuclear fuel, qualify for the sales tax exemption:
  manufacturing and processing; mining; refining; irrigation; construction;
  telegraph, telephone, and radio communication; and street and railroad
  transportation services. 39-26-102(21) C.R.S.
• If your total usage is exempt by 75% or more, complete and send a
  "Sales Tax Exempt Certificate Electricity & Gas for Industrial Use"
  (Form DR 1666) to your utility company.
• If your utility usage is less than 75% exempt, do not send a DR 1666 to
  your utility company. You may take a credit or apply for a refund of the
  tax paid on the exempt portion.
• Take a credit of the tax paid on line 3b of your December "Combined
  Retail Sales Tax Return" (Form DR 0100). If the credit is larger than the
  tax owed on your December sales tax return, you must apply for a
  refund on the excess amount. (Form DR 0137.)
• FYI Sales 71

February 2008                  Colorado Department of Revenue                   Slide #19
            Ready-Mix Concrete
• Ready-mix concrete is taxable on the
  delivered price, which includes
  minimum load and transportation
  charges.

• Standby charges charged after arrival
  at the destination are not taxable if
  segregated on the customer's invoice.

• FYI Sales 49

February 2008     Colorado Department of Revenue   Slide #20
                Sand and Gravel
• Sand and/or gravel removed from the ground becomes
  tangible personal property and is subject to sales/use tax.
  Exception: Unless sold to a licensed vendor for resale.

• The retailer of sand and gravel who removes sand and
  gravel stocks to fulfill his own construction obligations is
  subject to sales/use tax on the acquisition cost of the
  products used at the time of conversion to own use or
  consumption.

• Persons who purchase the right to remove sand and
  gravel from another's land are subject to a sales/use tax
  on the purchase price of the sand and gravel when
  removed, unless it is for resale.

• FYI Sales 51

February 2008             Colorado Department of Revenue         Slide #21
                      Upholsterer
•   An upholsterer is generally engaged in the sale of tangible
    personal property and accordingly will charge customers sales tax
    on the tangible personal property used in providing this service.
    The upholsterer must separately state the TPP and the
    service/labor charges or the entire transaction is taxable.
     – The labor used to upholster furniture is a service when the
        customer owns the furniture and the only property transferred
        via the sale is the upholstery fabric, staples and glue.

•   An upholsterer who purchases property which is later upholstered
    and then sells it is required to charge sales tax on the full selling
    price of the finished property.
     – Here, the labor to process and prepare is a taxable part of the
        transaction.

•   Finally, upholsterers must pay sales or use tax on those items
    used or consumed that do not become a part of the completed
    upholstered property.

•   FYI Sales 54


February 2008                 Colorado Department of Revenue                Slide #22
 Warranties/Maintenance Agreements
• For warranties and maintenance agreements which are
  mandatory, in most cases the seller must collect sales tax on the
  total purchase price. When the warranty is taxed in this manner,
  no additional sales or use tax is due from the seller or buyer on
  the materials used in performing the maintenance.

• Exception - Companies can receive permission to enter into a
  written agreement with the Department of Revenue. In such
  agreements, the department is authorized to determine what
  percentage of the company’s sales contracts is for the sale of
  tangible personal property and what percentage is for services
  supplied.

• An example of a company that might find such an arrangement
  useful would be a computer company that sells hardware
  packages bundled with a standard service contract for
  equipment maintenance.

• FYI Sales 70

February 2008              Colorado Department of Revenue             Slide #23
    Warranties/Maintenance Agreements cont.
•   If the maintenance agreement is optional, tax is not normally
    charged on the contract at the time of sale. The seller responsible
    for the warranty work must then pay sales or use tax on the cost of
    the materials used in performing the maintenance.

•   If the warranty seller contracts with a third party to perform the
    maintenance work, it is the subcontractor who is responsible for
    charging and remitting any tax on the materials used. The third
    party maintenance contractor would normally bill the warranty
    seller for actual maintenance costs, including sales tax on parts,
    supplies and materials.

•   Which local jurisdictions are owed sales tax for the parts used in
    performance of a warranty agreement? Sales tax is due to the
    local jurisdictions where the warranty work is being performed,
    regardless of where the original warranty contract was purchased.

•   Warranty contracts are taxed at point of sale with the tangible
    personal property and are subject to the same tax rate(s).



February 2008                 Colorado Department of Revenue              Slide #24
 Transportation Charges
    Rentals/Leasing
     Manufacturers
Manufacturing Equipment
        Transportation Charges
• The transportation of tangible personal
  property between a retailer and purchaser is
  a service presumed not to be subject to sales
  or use tax.

• Transportation charges are not taxable if
  they are both:

        1. Separable from the sales transaction
        2. Stated separately on written invoice or
           contract.

• FYI Sales 29

February 2008         Colorado Department of Revenue   Slide #26
  Transportation Charges cont.
• Transportation charges are separable from the
  sales transaction if they are:

    – Performed after the taxable property or service
      is offered for sale; and
    – The seller allows the purchaser the option
      either to use the seller’s transportation
      services or use alternative transportation
      services.

• Note: Home-rule cities may tax transportation
  charges – contact each home-rule city for details.

February 2008        Colorado Department of Revenue     Slide #27
                Rentals/Leases
• On leases of more than 36 months, the lessor must
  charge sales tax on the lease payments.
• On leases of 36 months or less, the lessor may
  either pay the tax when purchasing items to be
  leased or may collect the tax from the customer
  through the lease payments.
• If collecting sales tax on payments, you must
  submit an application for a permit to collect sales
  tax on the rental or lease payments (DR 0440.)
• Douglas County has a tax of 1% on property rented
  for 30 days or less (excluding motor vehicles). Tax
  is remitted monthly on Form DR 1480 “Colorado
  Short-Term Rental Tax Return.”
• FYI Sales 56

February 2008         Colorado Department of Revenue    Slide #28
                 Manufacturers
• A manufacturer may contract to build into real property. If
  the contract states that title to the materials is prior to the
  time the materials are built into real property, the
  manufacturer will be considered to have sold the material.
• Manufacturer must charge sales tax on the selling price of
  the material. If not properly separated, the amount included
  for installation is also taxed.
• If a manufacturer builds materials into real property and
  title does not pass until incorporated in the real
  property The manufacturer is a “contractor”
  contemplated in the special regulation for “retailer-
  contractor” and the manufacturer must pay sales/use tax
  based on the cost of goods withdrawn from inventory.
• FYI Sales 41

February 2008             Colorado Department of Revenue            Slide #29
     Machinery/Machine Tools
• Purchases of machinery/machine tools and parts thereof
  are exempt from state sales/use tax when the machinery
  will be used in manufacturing. 39-26-709 C.R.S.
• Effective May, 23, 2007, this exemption was expanded
  to include machinery/machine tools, or parts for such
  machinery, used in the production of electricity from a
  renewable energy source, including but not limited to
  wind.
• The equipment that is used both within and outside an
  enterprise zone only qualifies for the regular statewide
  exemption, as does equipment used at a location prior
  to that location’s designation as an enterprise zone. 39-
  30-106(1), C.R.S.
• FYI Sales 10
February 2008           Colorado Department of Revenue        Slide #30
Deliveries
        Pick Up Versus Delivery
• Pick up: Contractors must pay all state and
  local sales taxes to the vendor on all
  materials purchased and picked up at the
  store, regardless of the location of the
  construction site.
• Delivery: Contractors must also pay all state
  and local sales taxes to the vendor on all
  materials purchased that the vendor delivers
  to a construction site within the same taxing
  jurisdictions as that in which the vendor’s
  store is located.

February 2008      Colorado Department of Revenue   Slide #32
Deliveries Outside Boundaries
• Local sales taxes and RTD/CD/FD taxes are not collected when
  the retailer or his agent delivers via the retailer’s vehicle, to a
  destination outside the boundaries of the vendor’s local taxing
  jurisdictions or to a common carrier for delivery outside the
  boundaries of the vendor’s local taxing area(s).

• Delivery into another local taxing area does not require the
  vendor to collect the local sales taxes of the delivery area if the
  vendor does not have a business presence there. (e.g., sales
  representstive, physical location, etc.)

• However, sold goods that are turned over to a contractor, etc.
  who is not primarily a common carrier for delivery (for example,
  a carpet store turning over sold carpet to an independent
  installer who then installs the carpet for the purchaser), does
  not constitute delivery to another taxing area. Therefore, the
  goods are taxable in the local jurisdiction where the contractor
  picks up the goods.

February 2008               Colorado Department of Revenue              Slide #33
                Delivery Records
• Vendors making retail sales which are
  exempt from local sales tax due to the
  delivery location bear the burden of proving
  that delivery took place outside the taxing
  area.
• Retailers should maintain invoices showing
  specifics of such deliveries by common
  carriers.
• For deliveries with the retailer’s own vehicle,
  the DOR recommends maintaining delivery
  invoices signed by the purchaser upon
  delivery which show date, time, place, and
  vehicle used.
February 2008        Colorado Department of Revenue   Slide #34
            RTD/CD/FD Use Tax
• Because the RTD/CD/FD has a use tax,
  businesses that are not located in the
  RTD/CD/FD but make regular shipments into
  the district or have otherwise established
  nexus (a sales presence) in the district
  should collect the tax and remit it on the
  “Colorado Retail Sales Tax Return” (DR
  0100.)

• If the RTD/CD/FD tax is not collected by the
  vendor, the consumer located within the
  district must pay the use tax on Form DR
  0252 “Consumer Use Tax Return.”
February 2008      Colorado Department of Revenue   Slide #35
Sales Tax Account
    Due Dates
 Record Keeping
                Sales Tax Account
• Form CR 0100 (Business registration)
• Must file sales tax returns, even with no tax due.
• Prorated Fee: If the first day of sales is:
January to June even–numbered years 2004, 2006, 2008          $16.00
July to December even–numbered years 2004, 2006, 2008         $12.00
January to June odd–numbered years 2005, 2007, 2009           $8.00
July to December odd–numbered years 2005, 2007, 2009          $4.00



• Deposit required for retail sales tax license               $50.00

• The deposit is automatically refunded after $50 sales tax has been
  remitted. There is no time limit for amount to be reached to get
  refund.




February 2008                Colorado Department of Revenue            Slide #37
                      Due Dates
Sales tax returns
     Monthly (Taxable sales $10,000 or more/month) – 20th
      day of month following reporting period.
     Quarterly (Taxable sales of less than $10,000/month)
         January – March due April 20th
         April – June due July 20th
         July – September due October 20th
         October – December due January 20th
     Annually (If you collect $15/month or less after one year)
      – Due January 20th

Wage withholding returns:
   15th, 30th or 3rd business day following the end of your
     filing period.

Consumer use tax returns:
    Yearly; or when every $300 in use tax is accumulated.
    Due 20th of the month following the end of accumulation or
     annual filing period.

February 2008              Colorado Department of Revenue          Slide #38
                Record Keeping
• When accepting any license for a “tax-free” sale:
     – Make a copy of the license.
     – Write the license number on purchase invoice.
     – Keep a copy of the license for three years
       (statute of limitations.)

• Examples of records that may be needed at audit
  may include, but are not limited to the following:
     – Invoices
     – Purchase orders
     – Copies of contracts
     – Bills of lading
     – Delivery slips
February 2008         Colorado Department of Revenue   Slide #39
Sales/Use Tax
  Examples
     Sales/Use Tax Example #1
  A lump-sum contractor purchases materials and picks up
  for a job in Englewood. Who pays the sales taxes and where
  are they remitted?

  Invoice as follows:

  Materials total                        $5000.00

  State sales tax                        2.9%
  Arapahoe county sales tax              .25%
  Englewood sales tax                    3.5%
  Special District tax (RTD/FD/CD)       1.2%

  Total combined sales tax rate          + 7.85%




February 2008            Colorado Department of Revenue        Slide #41
                Example #1 cont.
• First, being a lump-sum contractor, the
  contractor pays all sales taxes to vendor.

• The vendor will remit state, county and
  special district taxes to Revenue; Englewood
  is a home-rule city, who collects its own
  taxes, so the vendor will remit the city taxes
  directly to Englewood.




February 2008        Colorado Department of Revenue   Slide #42
        Sales/Use Tax Example #2
   A time and materials contractor purchases and picks up
   materials from a vendor in Englewood, for a job in
   Englewood and presents the vendor a Colorado sales tax
   license and a building permit showing a USE tax has been
   paid to the city and county. Who pays the sales taxes and
   where are they remitted?

   Invoice as follows:

   Materials total                             $5000.00

   State sales tax                             2.9%
   Arapahoe county sales tax                   .25%
   Englewood sales tax                         3.5%
   Special District tax (RTD/FD/CD)            1.2%

   Total combined sales tax rate               +7.85%


February 2008            Colorado Department of Revenue        Slide #43
                Example #2 cont.
• In this case, the time and materials
  contractor WOULD NOT pay sales tax to
  vendor.

• The contractor will purchase materials tax-
  free and then charge his/her customer state
  and special district sales taxes on the
  materials.

• The use tax has been paid to the local
  jurisdictions via the building permit.



February 2008        Colorado Department of Revenue   Slide #44
     Sales/Use Tax Example #3
     A lump sum contractor purchases materials from a
     vendor located in Arvada (Jefferson county) and has
     them delivered to a construction site in Englewood
     (Arapahoe county.) The contractor provides a building
     permit showing a USE tax has paid. Who pays the taxes
     and where are they remitted?
     Invoice as follows:
     Materials total                               $5000.00
     State Sales Tax                               2.9%
     Special District Tax (RTD/FD/CD)              1.2%

     Total combined sales tax rate                 + 4.1%




February 2008              Colorado Department of Revenue     Slide #45
                Example #3 cont.
• In this case, the vendor is located in Arvada
  (Jefferson county.) The construction site is
  located in Englewood (Arapahoe county.)
  The vendor and construction site are both in
  the (RTD/CD/FD) jurisdiction.

• The vendor will charge the contractor state
  and special district taxes and remit to
  Revenue.

• The customer/contractor will pay the USE
  tax to the local jurisdictions.


February 2008        Colorado Department of Revenue   Slide #46
     Sales/Use Tax Example #4
   You purchase a tool box over the Internet, from an out-of-
   state company, with no nexus in Colorado. The tool box is
   delivered to your business, located in Golden, which is a
   home-rule city. The invoice shows:

        Price of tool box        $2,000
        Delivery charge          $15.00
        Tax charged              $00.00

        Invoice Total            $2,015

In this example, no sales tax was charged by the out-of-state
company. Therefore, use tax is due: State use tax (2.9%), and
RTD/CD/FD use tax (1.2%), which is remitted to Revenue. The
City of Golden (3%) use tax, which is remitted directly to the
city. However, Jefferson county is state-collected and
currently does not have a use tax. Note: If Jefferson county
had a use tax, the tax would only apply to building materials
and/or motor vehicles.
February 2008               Colorado Department of Revenue       Slide #47
     Sales/Use Tax Example #5
   A tool box is purchased and picked up from a vendor in
   Greeley, Weld county and brought back to your business
   location in Aurora, Arapahoe county. The invoice shows:
        Price of tool box       $2,000.00
        Tax charged             $ 127.20
        Invoice Total            $ 2,127.20




$127.20 divided by $2,000.00 = 6.36% tax collected by seller.
(2.9% state, 1.2% RTD/CD/FD, 3.46% city.) Aurora has a USE
tax rate of 3.75%. Therefore, you would owe .29% in USE tax
to the city of Aurora and remit the tax directly to the city, as
Aurora is a home-rule city and collects its own taxes.



February 2008               Colorado Department of Revenue         Slide #48
    CDOR Contacts
  “Free” Tax Classes
  Electronic Services
   Home-Rule Cities
Forms &FYI Publications
                CDOR Contacts
Colorado Department of Revenue

    – www.TaxColorado.com
       • Forms, FYI publications, Online Customer Support,
         Statutes & Regulations, Links to other government
         agencies, Tax Alerts

    – Call Center, Hours: M-F, 8:00a.m. - 4:30p.m.
       • 303-238-7378 (SERV) - General Information
       • 303-238-3278 (FAST) - Specific Account Information

    – Service Centers, Hours: M-F, 8:00a.m. - 4:30p.m.
       • Denver – 1375 Sherman Street (14th & Sherman)
       • Colo. Springs, Ft. Collins, Grand Junction, Pueblo
February 2008            Colorado Department of Revenue       Slide #50
                   Tax Classes
• Free Tax Classes offered by the Department of
  Revenue

      1.   Sales/Use Tax for Beginners – Content online
      2.   Advanced Sales/Use Tax – Content online
      3.   Employer/Employee Basics 101 (federal and
           state wage withholding, unemployment tax and
           workers’ compensation) – Content online
      4.   Contractor/Manufacturing – Content online
      5.   Hospitality – Content online
      6.   Printing/Advertising – Content online



February 2008            Colorado Department of Revenue   Slide #51
                Electronic Services
TaxColorado.com

     Sales Tax Info.
        1.   Local Sales Tax Rates – Rates for cities and counties
        2.   Local Taxes by Address – Rates for specific addresses
        3.   Retailers’ Use Tax Zero File - Out of state retailers
        4.   Retailers’ Sales Tax Rates – Need sales tax account
             number
        5.   Sales Tax Account History – View own sales tax
             account (must set up account/need a pin number)
        6.   Sales Tax License Verification – Verify sales tax
             licenses
        7.   Sales Tax Rate Charts – Need total sales tax rate
        8.   Sales Tax Zero File – For those with no sales tax due




February 2008               Colorado Department of Revenue           Slide #52
                Home-Rule Cities
•   Contacts listed on page #4 of the DR 1002
•   Can also be located via our Web site:
        www.TaxColorado.com
        Online Services
        Sales Tax Information
        Local Sales Tax Rates
        Choose home-rule city from list
        Click on the home-rule city link, which will
         take you to the municipal government page
         where all the links are located to each home-
         rule city Web site.

    Note: Many home-rule cities conduct sales/use tax
    classes and will need to be contacted directly for
    details.
February 2008          Colorado Department of Revenue    Slide #53
        Commonly Used Forms
DR 1002 – Sales/Use Tax Rates
CR 0100 – Business/Sales Tax Registration
DR 0100 – Sales Tax Return
    a) DR 0100 1 (Supplementary schedule for retail sales tax
       return.)
    b) DR 0100 1-R (Supplementary schedule for RTD retail
       sales tax return.)
    c) DR 0100 A (Retail sales tax return for occasional sales.)

DR 0137 – Claim for Refund
DR 0172 – Contractor Application for Exemption
DR 0252 – Consumer Use Tax Return
DR 0251 – RTA Consumer Use Tax Return
DR 1102 – Account Changes/Closure
DR 1191 – Sales Tax Exemption on Purchases of Machinery and
  Machine Tools
• DR 1192 – Machinery and Machine Tools State Sales Tax
  Exemption Agreement (Use if currently file more than 100
  Machinery and Machine Tool Exemption forms DR 1191's/year.)
All forms can be accessed at: www.TaxColorado.com


February 2008             Colorado Department of Revenue           Slide #54
       Contractors & Mfg. - FYIs
      Containers - Sales 21
      Contractors - Sales 18
      Contractors and Retailer-Contractors - Sales 6
      Credit For Tax Paid to Another State - Sales 82
      Direct Pay Permit for Colorado Sales Tax - Sales 78
      Enterprise Zone Exemption
      Machinery & Machine Tools in Mining - Sales 69
      Fabricating, Producing and Processing - Sales 25
      Gas and Electric Services - Sales 30
      How to Document Sales to Retailers - Sales 1
      Maintenance and Decorating Services - Sales 40
      Mfgs. & Prefabricators Acting as Contractors - Sales 41
      Manufacturing Equipment Exemption – Sales 10
      Modular or Sectional Homes – Sales 42
      Penalties and Interest – General 11
      Ready-Mix Concrete – Sales 49
      Sand and Gravel – Sales 51


February 2008               Colorado Department of Revenue       Slide #55
   Contractors & Mfg. – FYIs cont.
     Sales Tax Exemption on Industrial Utility Usage – Sales 71
     Statute of Limitations – General 18
     Tax Due Dates – General 15
     Tools, Jigs, Dies, Patterns, Molds, Etc. – Sales 53
     Upholsterers – Sales 54
     Warranties and Maintenance Agreements – Sales 70

   www.TaxColorado.com
        1. FYIs
        2. Sales Tax
        3. Contractors & Mfg.




February 2008               Colorado Department of Revenue         Slide #56
 Questions?
 Thank You for Attending
             &
Good luck in your business!

				
DOCUMENT INFO
Description: Ms Blank Sales Tax Exempt Certificate document sample