IT IS SUNSET REVIEW TIME AT THE COLORADO CAPITOL

It’s that time again, time to evaluate, adjust and improve the Motor Vehicle Dealer Board and how it affects you as auto dealers.

  CLICK HERE to read this informative article by CAR lobbyist Jeremy Cottrell.

RECENT DEALER QUESTION ON TITLING AND SALES TAX OF MANUFACTURER-PROVIDED RENTAL CARS

QUESTION: We lease program cars from our manufacturer to rent to our customers.
Our county recently indicated we could no longer transact ‘Dealer Resale Titles’ for this purpose, which means we would have to utilize standard title and registration processes, requiring us to pay sales tax at the time of registration. Is this correct? 

ANSWER:  Your County is correct in that Dealer Resale Titles cannot be issued for these cars.  However, they are exempt from sales tax at the time of titling and registration because they are rentals for which the end-customer will pay the sales tax on each rental. Additionally, the payments to the manufacturer are also exempt from sales tax. 

The Taxpayer Services division publication, Sales Tax FYI No. 56, contains a brief overview of this topic. To obtain this exemption due to the resale nature of these transactions, first submit to the state Department of Revenue an application for a “Permit to Collect Sales Tax on the Rental or Lease Basis” (DR 0440) for each business location. This permit is available at no charge and entitles the dealership (lessor) to purchase the property without paying state or state-collected local sales tax on the purchases to be leased.

  CLICK HERE for the Sales Tax FYI No. 56 – Leases of Motor Vehicles

  CLICK HERE for the Permit to Collect Sales Tax on the Rental or Lease Basis (DR 0440)

CLICK HERE to view an index of other Sales Tax FYI’s and guidelines applicable to motor vehicles.  

If you have additional questions on this topic, please contact Tammi McCoy via email at tammi.mccoy@cadaonline.org or by phone at 303.282.1449.  The state call center is available as well:  Call Center for Colorado Taxes, (303) 238-SERV (7378), representatives are available Monday through Friday, 8 a.m. to 4:30 p.m.

unclaimed property compliance seminar

The Colorado Office of the Treasurer compliance/audit personnel will review Colorado unclaimed Property Laws and Regulations.

• Colorado Unclaimed Property Act has covered automobile retailers since 1992

• Avoid embarrassing fines and penalties by taking advantage of this seminar

Businesses in Colorado must take specific steps to return “unclaimed property”:

• Learn what is covered, what steps you must take, and the annual reporting requirements

• Covered property must be turned over to the state if not returned to the rightful owner

• In general, “unclaimed property” includes various types of obligations or liabilities of a business which have been in active or have not been paid after an extended period of time after they are payable.  Examples include: 

• Amounts owed to suppliers/vendors

• Payroll/wage obligations

• Stale, outstanding checks

• Overpayments/refunds/rebates

• Security or other deposits

• Credit checks or memos

• Uncollected referral fees

• Due bills / We Owe Accounts (for parts, service, equipment ordered
  at the time of vehicle sale)

• Loan collateral

• Dividends or Interest

• Matured insurance policy proceeds

   Please CLICK HERE for more information on this seminar.  Register for this seminar by returning the attached registration form or clicking on the respective link below.
 

*Breakfast or lunch will be provided.

upcoming events for 2007