Helpful Tax Tips
Spotlight On: Destination Sourcing Rules!
Any retail sale that is made in Colorado is subject to Colorado taxation. In general, a retail sale is sourced to the location where the purchaser takes possession of the purchased property in accordance with the following rules:
- If the purchaser takes possession of the purchased property or first uses the purchased service at the seller’s business location, THEN the sale is sourced to that business location.
- If the property or service is delivered to the purchaser at a location other than the seller’s business location, THEN the sale is sourced to the location where the purchaser receives the purchased property or first uses the purchased service.
- If the purchaser requests delivery of the property or service to another person, as a bona fide gift from the purchaser, THEN the sale is sourced to the location where that person takes possession of the purchased property or first uses the purchased service.
Learn more in the Colorado Sales Tax Guide, Part 1
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Spotlight On: Whoooooo is DORi?
DORi, which stands for Department of Revenue Interactive, is the Department’s programmed interactive chatbot designed to help answer common taxpayer questions and direct taxpayers to the right place.
Get to know DORi:
- DORi is the bright orange tax owl that roosts at the top of the Revenue Online home page
- To interact with DORi:
- Select DORi at the top of Revenue Online
- Type in a tax keyword or phrase for which you would like more information
- Select the blue arrow or hit ‘enter’
- DORi is constantly evolving, but is NOT a live person. Therefore, DORi cannot answer account-specific questions and does NOT provide live help through the chat
Visit DORi at Revenue Online
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Spotlight On: Colorado Contractors 101!
In Colorado, the term “contractor” refers to any entity or person (including individuals, partnerships, firms, associations, corporations, trusts, estates, or joint ventures) that performs construction work on real property for another party under the terms of an agreement. Examples include, but are not limited to:
- Building contractors
- Road contractors
- Grading and excavating contractors
- Electronic contractors
- Plumbing and heating contractors
- Any person engaged under a contractual agreement in the construction, reconstruction, or repair of any building, bridge, or structure
- Landscaping contractors
NOTE: Anyone working for a salary or wage is NOT a contractor.
Want to learn more? Check out Construction Contractors- Sales 6
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Spotlight On: Intercepted Refunds!
If a taxpayer owes a past debt to an agency of the State of Colorado, the income tax refund or PTC Rebate could be intercepted to satisfy the debt. When a refund is intercepted, the Department of Revenue will send a letter explaining:
- Which agency initiated the intercept
- The amount of the refund intercepted
- Who to contact for further information
Learn more about Intercepted Refunds
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Spotlight On: Where’s My Income Tax Refund?
It’s easy to check the status of your income tax refund using Revenue Online (ROL)—there’s no need to log in! The refund information is the same that is available to our call center representatives, so you can check the status of your refund without having to wait on hold.
From the ROL homepage, select "Where's My Refund for Individuals" in the "Refund Resources" menu panel and enter the required information
Revenue Online will provide you with an updated status as your refund moves through our system
Check back often to verify where your return/refund may be in our process
Access the "Where's My Refund?" webpage
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Spotlight On: Sales Tax Recordkeeping Requirements You Can’t Ignore!
In Colorado, businesses MUST keep and preserve any books, accounts, and records of sales with the correct amount of sales tax calculated for a MINIMUM of three (3) years. This isn't just a suggestion; it's the law.
Additionally, every retailer must also keep and preserve all invoices of goods and merchandise purchased for resale for a MINIMUM of three (3) years.
Records MUST include the:
- Date the item was purchased
- Price of the item
- Information used to determine the correct amount of sales tax was charged
NOTE: If a sale was exempt from tax (meaning no sales tax was charged), you need to record WHY it was exempt.
Want to learn more? Check out Part 9 of the Colorado Sales Tax Guide. It's got all the details on record-keeping requirements
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Spotlight On: The Difference Between Revenue Online (ROL) & the Sales & Use Tax System (SUTS)!
Revenue Online (ROL) is an ADMINISTRATION portal that allows you to:
- File & pay sales tax for state-collected jurisdictions only
- Add non-physical locations to your account
- Find sales & use tax rates
- Update your account information
- And more
The Sales & Use Tax System (SUTS) is a FILING portal that allows you to:
- File all state-collected sales tax AND all participating home-rule cities on a single return with a single payment
IMPORTANT: If you file using SUTS, you must also pay using SUTS
Learn more about Revenue Online & SUTS here
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Spotlight On: Who must file an Individual Income Tax Return?
You must file a Colorado income tax return if, during the year, you were:
- A full-year resident of Colorado, or
- A part-year resident of Colorado with taxable income during that part of the year you were a resident, or
- A nonresident of Colorado with Colorado source income
AND
- You are required to file a federal income tax return, or
- You have a Colorado income tax liability for the year
Access the "Individual Income Tax Filing Requirements" webpage
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