Our staff recently attended a full day seminar on “Sales and Use Taxes” (tax/taxes) in Colorado. The complexity of the rules between the state and the cities makes Colorado one of the most difficult places to compute these taxes. In addition, audits have increased dramatically due to the budget shortages currently being experienced by all levels of government, so they are looking for every dollar they can recover.
The state of Colorado and many of the cities have excellent websites that can help guide you through this complex task. We encourage you to review all the necessary websites that affect your business to be sure that your invoices are being generated correctly and that you are paying use tax when appropriate.
Here are some of the items to consider:
- Is freight subject to tax and how should it be noted on your invoices.
- Internet purchases are subject to tax.
- Leased equipment may be subject to tax.
- Web sales may be subject to tax.
- Meals provided to employees.
- Sale of business or sales of business assets.
- If someone provides a tax exempt number is it always exempt?
- The list goes on and on so check the websites.
- Are taxes charged when permits are pulled and have you reconciled the project when completed?
Go to www.taxcolorado.com to get started, or Google your city and look for Sales Tax.
Contact Us or call today: 303.232.8300