Sales and Use Tax Information

Sales Tax

Sales tax is a government tax imposed on the sale of goods (referred to as tangible personal property) and certain services, which is collected by the seller at the point of sale. The sales tax is calculated as a percentage of the purchase price and is required to be remitted to the appropriate tax authority by the seller.

Sales Tax Information

Use Tax

Use tax is a government tax imposed on the storage, use, or consumption of tangible personal property within a jurisdiction when sales tax was not paid at the time of purchase. It is designed to complement the sales tax and ensure that all taxable goods are taxed, regardless of where they were purchased.

Use Tax Information

Difference Between Sales Tax and Use Tax

Sales Tax
Sales tax is charged at the time of purchase and collected by the seller. The seller is responsible for remitting the collected tax to the Colorado Department of Revenue, which then distributes it to the appropriate county.

Use Tax
Use tax applies when sales tax is not charged at the time of purchase. In this case, the purchaser is responsible for paying the use tax. This can be done either through the Construction Permit process with the Pikes Peak Regional Building Department or directly to El Paso County.