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For charitable organizations, the Colorado's Department of Revenue issues a "Certificate of Exemption" that authorizes it to purchase items and services used in the conduct of their regular charitable functions and activities without paying Colorado sales tax. This is sufficient documentation for the City of Aspen.
For governmental entities, some will have a Colorado issued tax exemption number, although they are not required to have one (tax exemption numbers begin with a "98"). In order for a governmental entity to take advantage of the tax exemption, the purchase must be made with a prescribed government form or purchase order, and paid directly by funds from the governmental entity. A credit card in the name of the exempt entity is acceptable. Some local governments issue credit cards in both the employee's name and agency's name. In many instances the bill is paid directly by the governmental entity and are tax exempt. It is not necessary for governmental entities to present a tax exemption number in order to make a tax exempt purchase.
A purchase by a governmental agent who is making the purchase out of personal funds, even if the employee presents a tax exemption number and plans to be reimbursed, is not tax exempt.
In cases where the seller invoices on a delayed basis for a purchase, the billing must be made directly to the governmental entity and not the person making the purchase.
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Yes, the City of Aspen is a home rule city. Neither the Colorado Department of Revenue nor any other taxing authority may collect taxes on behalf of the City. Any person who is engaged in business in the City of Aspen must obtain a City license and collect and remit Aspen taxes on all taxable transactions. Tax returns and remittances must be sent to the City of Aspen and not to the Colorado Department of Revenue. Payment to the wrong jurisdiction does not relieve a retailer of its liability to the City.
The vendor’s fee deduction is a credit to taxpayers who remit their sales tax return by the due date. This deduction is provided since the taxpayer is acting as an agent for the City by collecting and remitting sales tax on taxable sales. The deduction is 3.3% of total tax collected up to a maximum of $50.
While there are a variety of deductions allowed on the sales tax return, common deductions include the following:
Excess tax is accounted for on line 6 of the sales tax return. No retailer may retain any tax collected in excess of the tax computed, and should report the excess collections on the return for the period in which it was collected and include it in the calculation of tax due.
Yes, Aspen sales tax must be collected on all deliveries.
The general contractor is responsible for paying use tax on all construction materials brought into the City unless the subcontractor already paid sales tax on those items. The general contractor should provide each subcontractor with a use tax exemption certificate. If this is provided, the subcontractor does not need to charge Aspen sales tax.
If a dispute arises between a retailer and a purchaser who claims a sale is exempt from tax, the retailer must collect and the purchaser should pay the tax. The purchaser can submit a claim for refund to the City within 60 days from the date of purchase. Any refund will be issued directly to the purchaser.
Possibly. Since 2009, the Finance Department has a sales and use tax audit program. The audit period includes all reporting periods with due dates which fall within the 36 month period preceding the date of the notice of audit.
Yes, all direct sales to charitable organizations in the conduct of their regular religious or charitable organizational functions and activities, when billed to and paid for by the organization, are exempt from sales and lodging tax.
Yes, all direct sales to the United States Government, the State, its departments or institutions and its political subdivisions (counts and local governments, school districts and special districts), when acting in their governmental capacity only, and when billed to and paid for by the governmental entity are exempt from sales and lodging tax.
Wholesalers must obtain a standard sales tax license and pay the $16 license fee, but are not required to pay the $50 deposit. More information can be found on the Colorado website.
Service oriented businesses generally do not need to collect sales tax. Persons engaged in the business of rendering service are consumers, not retailers, of the tangible personal property which they use incidentally in rendering the service. If, in addition to rendering service they regularly sell tangible personal property to consumers, they are retailers with respect to such sales and they must obtain a license, file returns, and remit tax on such sales.
Bad debts and returned goods previously reported as taxable sales are deductible.
Any rental over 30 days is considered a long term rental and sales and lodging taxes are not due. This applies to all lodging establishments, including condominiums and single family homes. If you rent your home less than 30 days, it is considered a short term rental and sales and lodging taxes must be collected and remitted to the City on a quarterly basis. Please contact the Finance Department for more information.