TAX NEWS - January 2010

Colorado: Tax-Exempt Entities

Colorado charitable organizations are allowed an exemption from state-collected sales tax for purchases made while conducting regular charitable functions and activities.

Governmental entities, including all political subdivisions of the State of Colorado (state agencies, school districts, cities and counties), are automatically tax exempt.

This exemption does not apply to locally-collected sales tax levied by home rule cities. Home rule jurisdictions make their own tax regulations, and they must be contacted directly for information

Out-of-state charitable organizations are not issued a Colorado exemption number. When attending a function in Colorado, the out-of-state organization must use the number issued by the state where they are located.