The Colorado Sales Tax Return has changed for the 2020 tax year. The Department has received many questions about the changes. The most commonly asked questions, along with their answers, are listed below.
Effective January 1, 2020, the state service fee increases from 3.33% to 4% and is capped at $1,000 per filing period at the account level.
If the combined Colorado state service fee calculated on all of the retailer’s sales tax returns for all sites/locations for the filing period exceeds $1,000, the retailer must complete the State Service Fee Worksheet (DR 0103). The worksheet is used to determine what amount, if any, the retailers must add to the total balance due calculated on the retailer’s returns.
Why didn’t my business receive a blank paper return this year?
Paper forms will no longer be mailed to sales tax licensees. A PDF version of the form can be printed/downloaded from the website on the Sales & Use Tax Forms web page.
Businesses with multiple locations can also file using a spreadsheet. More information can be found on the Spreadsheet Filing web page.
Which lines changed on the DR 0100 form this year?
Line Item Changes
Line 2a. - Sales to licensed dealers has been moved to Schedule A, line 1.
Lines 2a, 2b and 2c. - These lines have been removed. Line 2 is now used for all Deductions from Schedule A and modified to: Total from line 13 of Schedule A.
Line 3a. - Sales out of taxing area has been moved to Schedule A, line 2.
Line 3b. has been removed. Line 4 is now used for all Exemptions from Schedule B and modified to: Total from line 12 of Schedule B.
Line 3c. Is now line 13 and modified to: Credit for tax previously paid.
Line 10 - Tax on inventory usage has been removed. Any tangible personal property a business purchased for resale, but is subsequently removed from inventory for the business’ own use, is subject to consumer use tax. For more information, review the Inventory Use section above.
Deductions Schedule - Part A
Sales to licensed dealers are now deducted on line 1 of Schedule A and modified to "Wholesale sales, including wholesale sales of ingredients and component parts."
Sales out of the taxing area are now deducted on line 2 of Schedule A and modified to "Sales made to nonresidents or sourced to locations outside of Colorado."
New Deduction Schedule Line Item: Line 11. Sales of computer software that is not taxable.
Exemptions Schedule - Part B
New Exemption Schedule Line Item: Line 10. Sales of retail marijuana and retail marijuana products.
When dealerships sell to a customer who will register the vehicle in another taxing jurisdiction, the dealer will collect the tax in common with the customer, the dealer will then exempt the sales for the jurisdiction not in common on line 11 of Schedule B (other exemptions).