Colorado Issues Revised Sales and Use Tax Exemption Forms

Through House Bill 22-1039, the Colorado Department of Revenue (Department) has revised the following sales and use tax exemption forms.

  • DR 0715, Application for Exempt Entity Certificate – This form consolidates DR 0715 and DR 0716, makes the form more user-friendly, and the address where the form is submitted has been updated.
  • DR 0716, Statement of Nonprofit Church, Synagogue, or Organization – This form no longer exists.
  • DR 5002, Declaration of Wholesale of Entity Sales Tax Exemption – This form consolidates the DR 5002 and the forms listed below into one form and makes the form more user-friendly. Note that the Multistate Tax Commission’s Uniform Sales & Use Tax Resale Certificate is another acceptable form for record keeping of wholesale purchases. Forms related to machinery and machine tools are no longer required to be sent to the Department.
    • The following forms no longer exist due to the changes made to Form DR 5002.
      • DR 0563, Sales Tax Exemption Certificate Multi-Jurisdiction
      • DR 1367, Affidavit of Sales Paid by Government Credit Card
      • DR 1191, Sales Tax Exemption on Purchases of Machinery and Machine Tools
      • DR 1192, Colorado Machinery and Machine Tools State Sales Tax Exemption Declaration

The Department considered replacing the two below forms but decided to review updating the rules before changing the forms. The forms will remain the same for the time being.

  • DR 1260, Sales Tax Exempt Certificate Electricity & Gas for Domestic Consumption
  • DR 1666, Sales Tax Exempt Certificate Electricity & Gas for Industrial Use

Some updates were also made to Form DR 0172, Contractor Application for Exemption Certificates. Instructions were added to clarify the project completion date should include any warranty period. An updated form can be requested if the completion date is extended in the future. Finally, the address where the form is submitted has been updated.

No other forms were revised under House Bill 22-1039 but changes to others are anticipated in 2024. If a taxpayer currently utilizes the above forms, they should make sure they are providing or accepting the most recent version. (CO H.B. 22-1039, October 2023)

Posted on November 29, 2023