Colorado Sales Tax Exemption Nonprofit

Is my organization automatically exempt from paying sales tax?

No, also though you"ve obtained tax-exempt status through the IRS, you"ll still should use for sales taxation exemption through the State of Colorado to receive a Colorado exemption certificate. However before, the application is for state-accumulated sales tax just, and does not apply to home-ascendancy cities (view listed below for more indevelopment on home-dominion cities). 

Organizations that are exempt from federal revenue taxes under 501(c)(3) will certainly mainly be approved for a sales taxation certificate of exemption in Colorado. 

If seeking exemption in a home-rule city, you need to call the city for better information.

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View the Coloracarry out Sales/Use Tax Application Find Out More

What purchases are exempt from state-collected sales tax?

Purchases made to conduct regular charitable functions and activities from the organization"s funds. Purchases made by the organization that will certainly be reimbursed by any type of perchild does not qualify as a tax-exempt purchase. 

Aacquire, this only applies to state-built up sales tax. Home-preeminence cities make their very own taxation regulations and also need to be contacted for further information (view below).

How perform I purchase items that are exempt from sales tax?

To speed up your purchase process, your company might complete an affidavit of exempt sale and also offer to the seller, in addition to your supporting documentation.

See more: Salary: Program Director Nonprofit Salary, Director Nonprofit Annual Salary ($74,274 Avg

Watch this short video to learn even more around purchasing tax exempt items. 

Home-preeminence cities have actually their own variation of this create that deserve to mainly be discovered on their website.

View the Affidavit of Exempt Sale 

What is a home-preeminence city and what does that mean for my nonprofit?

The state collects sales tax and various other regional taxes on befifty percent of many type of Coloraperform areas. However, home-ascendancy cities make their very own taxation regulations and also collect their own taxes. Exemptions for home-rule cities need to be used for independently and also might be topic to various needs than the federal and also state exemptions. Home-preeminence cities likewise have their own version of an affidavit of exempt sale that you"ll need to complete. 

View a List of Home-Rule Cities (pperiods 8-10)

Denver Changes to Sales Tax Exemption

As reported in the Denver Post on June 28, Denver City Council apverified an ordinance to clarify the city"s interpretation of charity for determining exemption from sales, usage, lodger"s, and also employer work privilege tax. 

CB 17-0529 would certainly amfinish the meaning of charitable corporation in the municipal code to intend "...any type of company that has been exempted from federal earnings tax as a nonprofit organization in good standing under section 501(c)(3) <...> and also that has actually applied for and got a valid letter of exemption from the Manager ."

Read Our Complete Policy Update

If we sell items, does my nonprofit have to collect sales tax?

In order to be exempt from collecting sales tax, your company need to satisfy the following:

You have to be a 501(c)(3) and have actually a Coloraexecute exemption certificate,Sales need to be conducted for a complete of 12 days or fewer in the time of a calendar year, andNet proceeds from all events/sales is much less than $25,000 in that calendar year.

If you conduct sales for more than 13 days or reach $25,000 in net proceeds, your company need to obtain a sales tax license and also remit sales tax on all sales that developed in that calendar year, including sales that were formerly exempt prior to the day as soon as the thresorganize was gone beyond. 

Your organization should call your regional government for regulations on collecting local taxes. If the local jurisdiction is a state-accumulated tax jurisdiction that does not enable the exemption, your organization have to achieve a Coloraexecute sales taxes license so that the organization have the right to report and pay local tax to the department.

Discover More Obtain a Sales Tax License


These write-ups, samples, and resources are offered for informational purposes just and also must not be interpreted as experienced advice. If used, your company need to tailor samples to best fit the organization’s specific scenarios. We encourage your company to look for correct experienced assistance as essential.

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