Colorado offers taxpayer education
The Colorado Department of Revenue (CDOR) is offering a packed schedule of taxpayer education classes for business owners and individuals wishing to learn more about the state’s tax codes. Some of these classes are aimed at certain industries, others are geared toward employment or income taxes, and there is a two-part series on basic and advanced sales and use tax law.
The classes will take place at locations throughout the state or are available online to registered users.
Colorado’s tax districts are complicated, with more than 740 different jurisdictional combinations. Adding to the confusion, the state collects sales and use taxes for all counties except for Denver and Broomfield and doesn’t collect tax for every city. Dozens of Colorado cities are considered “home rule” cities and are responsible for collecting their own local taxes.
As an example of how complicated collecting sales tax can be, check out the following scenario:
A seller is located in, the state of Colorado, El Paso county, the city of Colorado Springs (home-rule city), and the Pikes Peak RTA. The purchaser is located in the state of Colorado, Douglas county, the city of Highlands Ranch with a RTD/CD tax district.
Result: Colorado state tax is due, but no sales tax should be collected for Colorado Springs, El Paso County or the RTA. If the seller has nexus in Highlands Ranch, the seller should collect state, Douglas County, and the RTD/CD sales taxes. If the seller doesn’t have nexus in Highlands Ranch, but makes deliveries into Highlands Ranch, the seller should open a Retailer’s Use Tax Account and remit RTC/CD use tax on these sales. (No city tax applies to sales in Highlands Ranch, as Highlands Ranch does not have a
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