Colorado: Sales Tax for Special Events
- Nov 6, 2013 | Gail Cole
It must be the time of year. With holidays on the horizon, state departments of revenue seem to be anticipating an increase in holiday gift bazaars, fairs, and festivals. As a result, they are reminding taxpayers of the tax requirements associated with such events.
North Carolina recently published information on specialty markets and sales tax. Last December, the Texas Comptroller of Public Accounts reminded that sales tax is due on sales made from temporary places of business. And now, Colorado has alerted residents to the some key facts about sales tax and special events.
A license for every event
Perhaps most noteworthy is this:
“Even if a business already has a Colorado sales tax license for a permanent location, a special events license is required when sales are made at a location other than the permanent business.”
In other words, if you have a store and decide to sell from a booth at a holiday fair, you need a special events sales tax license in addition to your regular sales tax license. That’s worth knowing.
Online filing available
Sellers interested in reducing the paperwork on their desks will be pleased to learn that it is possible to File Special Event Sales Tax online. According to the Colorado Department of Revenue Weblog, “Each return is tailored to an event location and will calculate the appropriate state-collected sales tax and the state sales tax license fee.”
The home-rule (dis)advantage
Home-rule cities and counties may have different sales tax requirements for special events. Vendors are advised to contact home-rule governments directly with sales tax requirement questions.
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