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FYI, shipping to Colorado from an out of state purchase.


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NEW COLORADO RULE WILL CHANGE TAXING OF SHIPPED VEHICLES
EFFECTIVE JANUARY 1, 2022
 
WHAT HAS CHANGED
Motor vehicles that are sold outside of Colorado and shipped to a resident in Colorado will be taxed at the instate sales tax rate.
 
WHAT THE CHANGE MEANS
The Colorado applicant will be charged the same amount in taxes as if they had purchased the vehicle from a Colorado motor vehicle dealership.  Vehicles purchased and driven off the lot outside of Colorado are not affected by this change.  Vehicles driven off the lot will continue to be charged Colorado use tax as opposed to sales tax and remitted at time of titling & registering at the county DMV.
 
HOW THE CHANGE AFFECTS A SELLING DEALERSHIPS
Dealerships outside of Colorado will have the additional responsibility of remitting the sales tax directly to the Colorado Department of Revenue when it ships a vehicle inside Colorado to a Colorado resident.  To remit the taxes, the selling dealership must apply for a Colorado tax account number.
 
WHAT DOES A SELLING DEALERSHIP NEED TO KNOW ABOUT A COLORADO TAX ACCOUNT NUMBER
A valid tax account number is 12-digits, it consists of an 8-digit dealership specific account number and a 4-digit home-rule city location code that will be based on purchaser’s address.  If you make multiple sales to Colorado residents, and if they live in different home-rule city locations, you will need multiple account numbers.
 
HOW TO APPLY FOR THE REQUIRED COLORADO TAX ACCOUNT NUMBER
To set-up a Colorado tax account number, please visit the following website: Colorado.gov/RevenueOnline
The Department of Revenue has created some YouTube tutorials to assist in creating this and you can view them here:
https://youtu.be/QjbC_Nrfv7o
https://www.youtube.com/watch?v=xdtUzY-Jwvs
If you want or need assistance setting this up and would like to speak to a live representative, you can call #303-238-7378.
HOW MUCH DOES A TAX ACCOUNT NUMBER COST
Colorado charges $65.00, this charge is a $50.00 deposit that will be refunded once you remit the first $50.00 of sales tax and a $16.00 license fee.  The tax account must be renewed every 2 years.
Please note that Colorado requires you to file for each jurisdiction. Each jurisdiction has their own Location code or site number that must be registered for. View the following YouTube video on the tutorial of how to set up:
https://youtu.be/_TewpTZYN-s
 
WILL THE DMV NATIONWIDE SYSTEM CONTINUE TO ACCEPT COLORADO DEALS
Driven off the Lot Deals
The DMV Nationwide system will continue to accept deals for vehicles sold to a Colorado resident and driven off the lot.  Our processing center will continue to process and submit the deal to the governing DMV for titling and registration, along with the use tax payment on the dealership’s behalf. 
 
Shipped Deals
Colorado does not allow a third party to apply for the tax account number on the dealership’s behalf and the sales tax must be remitted by the dealership. Unfortunately, because of this new rule, the DMV Nationwide system will no longer accept deals for vehicles shipped to Colorado.  If a dealership sells a vehicle that is shipped to a Colorado resident in Colorado, it will be the responsibility of the dealership to have a tax account number with the applicable location code set up to be able to submit paperwork for titling and registration to the governing Colorado DMV and remit the sales tax payment to Colorado DOR.
We are sorry that the Colorado rule change could cause you any inconvenience, unfortunately, it is out of our control.   We have provided as much information on how to stay compliant with the new rule and how to contact Colorado with questions as we have at this time.  We recommend you alert the individual(s) that enter deals into our system of this update and share this information with any affected individual(s) at your dealership.
 

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Jesus - talk about adding a layer of bureaucracy with no value added.  Making the selling dealer remit the tax will just stop out of state dealers from doing deals.  Was it really that big of an issue?  I mean all you needed to do was require that the purchaser remit the taxes due at the time of registration and problem would be solved from a tax perspective.  Were CO dealers losing out on so many sales they made a stink?

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Concur...two of my last four purchases came from out of state dealerships.  Ohio gave me a paper tag and I eventually was mailed an Ohio title, with me being responsible for Texas taxes and registration fees after returning home.  They offered to handle that for me, but apparently they would have had to calculate tax by Ohio standards, which, at the time, were keyed to gross, not net, pricing.  

 

The F-Type, being purchased in a neighboring State and literally less than 15 miles across the border, was used to collecting Texas taxes and doing paperwork with Texas tax offices.

 

Many of the specialty vehicles have dealerships in certain States that offer some killer deals...add in extra layers of bureaucracy and those deals are apt to dry up and blow away.    

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When we bought our Tesla, we had to purchase it from them as an out of state seller, and then we were responsible for registering/paying the taxes on it ourselves.  This was due to the laws in Texas around car dealerships.  I wonder if CO has similar laws, and if so, does this mean that Tesla can lo longer sell in CO?

 

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