RTD and SCFD sales tax base to be the same as the state’s tax base

Reminder: Effective Jan. 1, 2014, the sales and use tax base of the Regional Transportation District (RTD) and the Scientific and Cultural Facilities District (CD) — located in the Denver metropolitan area — are identical to the state sales and use tax base (House Bill 2013-1272).

This means that the state, RTD and CD exemptions on tangible personal property will be exactly the same.

Prior to Jan. 1, some items that are exempt from the RTD and the CD sales and use tax are taxable for state purposes, and vice versa. The goal is to eliminate confusion for sales and use taxpayers and simplify tax collection for businesses in the RTD and CD areas. The legislation has no impact on local government sales/use tax bases.

Additionally, with this legislation effective Jan. 1, 2014, cigarette sales are subject to Colorado’s state sales tax and subject to RTD/CD taxes.

The following table includes examples of items and taxability prior to Jan. 1, 2014 and on and after Jan. 1, 2014. These items were specifically noted in House Bill 2013-1272. However, this list does not necessarily cover all taxable or exempt items. For additional assistance, see the Sales Tax Exemptions Web page.

Changes to Sales and Use Tax Base per HB 2013-1272

Prior to January 1, 2014

Effective January 1, 2014

Item

Taxable by State but Exempt from RTD and SCFD

Taxable by RTD and SCFD but Exempt from State

Taxable by State, and RTD and SCFD

Exempt by State, and RTD and SCFD

Candy and Soft Drinks

X

X

Cigarettes

X

X

Direct Mail Advertising Materials

X

X

Food Containers

X

X

Low-emitting Motor Vehicles, Power Sources, and Related Parts

X

X

Machinery or Machine Tools

X

X

Vending Machine Sales of Food Excluding Candy and Soft Drinks

X

X