Colorado State or Local Use Tax?
Published: December 20th, 2021
Does Colorado have a Use Tax?
Yes, the State and some state-collected local jurisdictions and home-rule cities have a use tax.
use tax and Mass Transportation System Tax (MTS)
Colorado also has some “statutory” towns, cities and counties as well as “home-rule” cities that have use tax. While the statutory jurisdictions can only opt to have use tax on motor vehicles and building materials, the home-rule jurisdictions generally have a broad-based use tax on the same products and services that are subject to their sales tax. The Colorado Department of Revenue does not collect use tax for the statutory towns, cities and counties.
- The State’s use tax returns are due at least annually or sooner if you reach $300 in tax due.
- The home-rule cities’ use tax is usually filed as part of their combined sales and use tax return.
- The statutory jurisdictions are responsible for their own use tax; contact them directly if they have an applicable use tax and you have an amount due.
Filing an accurate use tax return starts the statute of limitations, which limits how far back the State or home-rule jurisdictions can go upon audit.