| Colorado Department of Revenue
1375 Sherman St
Denver , CO 80261
| Unless Colorado sales tax is paid when purchasing items to be rented, sales tax must be collected on rental fees for tangible personal property.
If your business is seasonal and you make retail sales during only part of each year (e.g., ski rental shop), you must obtain a standard sales tax license. When you apply for your license, indicate on the “Colorado Business Registration” (CR 0100) which months of the year your retail business will be active. The department will send you returns only for those months during which you do business. The return is due on the 20th of the month following the reporting month. If your seasonal business is conducted in several locations, you must have a separate license for each location. See FYI Sales 9, Sales Tax Licenses.
| Sales tax is also collected on long-term lease payments. Leaser must obtain a sales tax license and complete form DR440, Permit to Collect Sales Tax on the Rental or Lease Basis, for each business location.
| On leases of 36 months or less, the lessor may either pay the tax when purchasing items to be leased or may collect the tax from the customer through the lease payments. However, one method must be chosen and the lessor must use that method for each vehicle or property leased. See Department of Revenue FYI Sales 56, Leases on Motor Vehicles and Other Tangible Personal Property
| Rentals of tax-exempt medical equipment are not sales taxable (ex: crutches, braces, etc.). See FYI Sales #68, Medical and Dental Supplies and Equipment.