Colorado Sales Tax

[MarvBear]

Information from NADA Title & Registration Textbook 2004

 

Colorado Sales and Use Tax Applicable to Registration

 

2.9%. Contact any home-ruled self-administered cities such as Denver directly for their specific guidelines. Certain other municipalities impose an additional ½% to 3% sales/use tax. TRADE-IN to a dealer is allowed. If a customer receives two vehicles in exchange for one vehicle from a dealer on an even trade, and no money changes hands, the Colorado Sales Tax form given to the customer by dealer will reflect the trade-ins & their values. The calculations will indicate that it was an even trade & no sales taxes will be due at time of titling and registration NON-RESIDENT exempt if vehicle is to be registered in state of legal residence. MILITARY PERSONNEL ARE NOT EXEMPT. The County Clerk collects taxes. Most cities allow credit for taxes already paid to another state. A few cities in Colorado which operate under “home rule” do not allow credit for taxes paid in another state. “Home rule cities” for which the state does not collect local sales tax should be contacted for up-to-date information concerning their tax rates, exemptions, license fees, and procedures. The state sales tax rate of 2.9% was reduced to .01% through June 30, 20902 for new or used commercial trucks, truck tractors, tractors, semi-trailers, or vehicles used in combination all with a GVW in excess of 26,000 lbs. To qualify the sale or lease must have occurred after July 1, 2001. The reduced state sales tax rate on these vehicles continues at .01% throughout the lease contract.