Although very similar, use tax is not the same as sales tax and tends to be overlooked by many business owners. In the state of Colorado, businesses are required to pay use tax on items purchased that are not for resale, and on which sales tax was not paid when purchased. If your business operates in Colorado, you are required to file a separate state use tax return only if you owe such taxes. Additionally most home-rule cities require use tax to be reported and paid on the Sales and Use Tax Return based on your required filing frequency. Use taxes can also be very complicated, so please contact us if you have questions. Please note, if you are a non-profit organization located in Fort Collins, you are not necessarily exempt from city sales and use tax.
