Individuals and businesses in Colorado are bound to pay a consumer use tax, also known as usage tax. This is typically applicable for acquisitions like the purchase of a dental business for sale that didn’t include sales tax at the time when it was bought.
The state's consumer use tax is levied at the same 2.9% rate as its sales tax. Sales tax payable to other states may be deducted from consumer use tax owed in Colorado for a specific item with proof of payment. It is important to note that a few special districts and local administrations also collect usage tax.
The majority of people in Colorado reside in one of several special districts. For example, most of Denver's metro area population lives within the limits of the Scientific & Cultural Facilities District (SCFD) and the Regional Transportation District (RTD).
The amount of consumer use tax payable determines the due date for companies and other legal bodies. The company is required to submit a yearly use tax report even if the total amount of consumer use tax it pays in a year is less than $300. By January 20th of the following year, it must be submitted. The firm or legal entity must submit a return before the 20th day of the subsequent month if the total tax owed exceeds $300.
Usage tax is a compulsory part of a transaction involving a dental business for sale. However, it applies to