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California, Colorado And Connecticut Sales And Use Tax (United States Sales And Use Tax Series #3)



Aaron Giles - State Sales And Use Tax Exemptions 2

California Sales And Use Tax

The state of California currently levies a 7.25% state sales tax rate.  Between January 1, 2013 and December 31, 2016 the state sales tax rate was 7.5%. The reduction to the current 7.25% rate took effect on January 1, 2017. The temporary 4-year increase in the state sales tax rate was a result of the increase passed under Proposition 30 which was on the November 6, 2012 ballot for California votes.  The initiative was approved by 55.4% of voters. See below for more detailed information about relevant California sales tax exemptions and use tax.

Counties & local municipalities also levy their own sales taxes in addition to the state rate.  Currently, California’s combined sales tax rates range between 7.25% and 9.75%.  The combined rate includes state, district, county and city sales tax.

Use tax is applied on the same basis and at the same rates as sales tax is within the state of California. For monthly-filers, returns are due on or before the last day of the month following the month in which the purchases were made. For example, purchases made in the month of January should be filed with the state of California on or before the last day of February.

State Of California Board Of Equalization
Certificates Used In Sales & Use Use Tax Regulations
California Internet Sales And Use Tax Rules

Colorado Sales And Use Tax 

The state of Colorado levies a 2.9% state sales tax rate on retail sales. Most counties and cities charge their own sales taxes in addition to the state rate. The range of sales tax charged within the state of Colorado ranges from 2.9% to 8.0%.

Use tax is due on all purchases brought into the state of Colorado. Use tax due is at the same rates as sales tax. Returns are to be filed on or before the 20th day of the month following the month in which the purchases were made. For example, purchases made in the month of January should be reported to the state of Colorado on or before February 20th.
For more information on Colorado sales tax exemptions please visit the sites shown below on all recent sales and use tax changes:

Colorado Department Of Revenue
Code Of Colorado Regulations And Rules
Colorado Sales Tax Forms And Instructions

Connecticut Sales And Use Tax 

Beginning on the July 1st, 2011, the state of Connecticut levied a 6.35% state sales tax on the retail sale, lease or rental of most goods. No local jurisdictions apply an additional sales tax, therefore the state rate is fixed at 6.35%.

Use tax is due on items purchased outside of the state and brought into Connecticut for use, storage or consumption. The same 6% rate applies to use tax as well. In general, when you register your business with the state of Connecticut, you will be set up to file sales tax returns on a quarterly basis. If your sales tax liability is more than $4,000 for the prior 12-month period, beginning July 1 and ending June 30, your filing status will be changed to monthly. Monthly returns are to be filed on or before the last day of the month following the month in which the purchases were made. For example, purchases made in the month of January should be filed with the state of Connecticut on or before the last day of February.

Connecticut State Business Registration Information
Connecticut Updated Sales And Use Tax Information
Connecticut Sales And Use Tax Forms And Rate Charts

Have a sales and use tax question? Contact Aaron Giles.

 

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Aaron C. Giles is the Founder and President of Agile Consulting Group. Aaron spent five years working within the specialty niche of Sales & Use Tax at Brown & Associates before forming his own firm in 2005. He has worked hundreds of audits in states all across the U.S. during that time and has delivered savings of over $75M in the form of refunds and credits to his clients. Today, he leads a group of talented, detail-oriented colleagues who focus exclusively on Sales & Use Tax.

Some of our firms’ greatest achievements have come in successfully arguing new and unique perspectives to existing tax law in various states enabling our clients to claim exemptions on categories of purchases previously held to be taxable. Included in these victories are: communication services taxes for religious nonprofit hospitals in FL, bulk purchases of drugs in VA, specific surgical tools and instruments for healthcare providers in TX, printing plates in GA, railroad utilities in KY, and most recently software in AL.