Colorado Instructions for Standard Sales Tax Receipt for Vehicle Sales

Instructions for Standard Sales Tax Receipt for Vehicle Sales
Instructions for Standard Sales Tax Receipt for Vehicle Sales DR 0024N
DR 0024N (08/31/21)
COLORADO DEPARTMENT OF REVENUE
Sales Tax Accounting Section
Denver CO 80261-0009
(303) 238-SERV (7378)
Tax.Colorado.gov

Instructions for
Standard Sales Tax Receipt for Vehicle Sales (DR 0024)

Sales and Use Tax on Vehicles Sales

Form Instructions

In general, retailers, including auto dealers are required
to collect sales tax on the purchase price of each motor
vehicle they sell in Colorado and prepare a Standard
Sales Tax Receipt for Vehicle Sales (DR 0024) to
document the collection of tax. This receipt must also
be completed by any retailer that sells wheeled trailers,
semitrailers, manufactured homes, special mobile
machinery, self-propelled construction equipment, or
salvage vehicles. The DR 0024 must be submitted to the
county clerk along with the titling paperwork before title
and registration can be issued.

Part 1. Retailer, Purchaser, and Vehicle Information
Enter the required information for the retailer, purchaser,
and vehicle along with the required information for any
vehicle trade-in from the purchaser.

Leased Motor Vehicles
See Department publication Sales and Use Tax Topics:
Motor Vehicles for detailed guidance regarding the taxation
of motor vehicles leased in Colorado.
Retailers are not required to prepare a Standard Sales
Tax Receipt for Vehicle Sales (DR 0024) or collect sales
tax on the full purchase price of a motor vehicle sold to a
lessor if the lessor will collect sales tax from the lessee on
the lease payments. In such case, the retailer must collect
sales tax from the lessee on any amount paid at signing
and delivery and complete a Tax Statement for Leased
Motor Vehicle (DR 0026).
If the lease is for a term of less than 36 months and the
lessor has not received permission from the Department to
collect sales tax on the lease payments, the retailer must
collect sales tax from the lessor on the full purchase price
of a motor vehicle in the same manner as any other motor
vehicle sale and prepare a Standard Sales Tax Receipt for
Vehicle Sales (DR 0024).
In the case of a lease requiring the lessee to make only
one payment, rather than periodic (e.g. monthly) payments,
the one payment made by the lessee may be subject to
sales and/or use tax, depending on the duration of the
lease and whether the lessor has received permission from
the Department to collect sales tax on lease payments.
If the lease payment is taxable, the lessor or the retailer,
whichever receives the payment from the lessee, must
collect the state and local sales and/or use tax from the
lessee, prepare a Standard Sales Tax Receipt for Vehicle
Sales (DR 0024) to report the tax, and remit any applicable
use taxes to the county clerk along with the titling paperwork.
Home Rule Cities
Home rule cities may have different rules regarding the
taxation of motor vehicles sales. If the vehicle is to be
registered in a home rule city, the retailer must complete
Part 3 to report the home rule city tax due, if any, prior to
titling and registration.

Part 2. Sales/Use Tax on Vehicle Sale
With the sale of a motor vehicle, a retailer generally
must collect all state and state-administered sales taxes
applicable to the location at which the purchaser takes
possession of the motor vehicle. However, the retailer
should not collect sales tax imposed by any city, county,
or special district unless the purchaser is a resident of
that local jurisdiction and will be registering the vehicle in
that local jurisdiction. Instead, any use tax imposed by the
city, county, and/or special district in which the purchaser
resides and in which the vehicle will be registered must be
paid to the county clerk before title and registration can
be issued. If the seller delivers the vehicle to the purchaser
at the purchaser’s location, the sale takes place at that
location and all relevant local sales taxes apply.
Any state and state-administered local sales tax the retailer
collects must be remitted to the Department with the
retailer’s regular, monthly Colorado Retail Sales Tax Return
(DR 0100) and reported in the applicable column in Part 2
of the DR 0024. Any local use tax the retailer collects must
be remitted to the county clerk with the Standard Sales Tax
Receipt for Vehicle Sales (DR 0024) and reported in the
applicable column in Part 2 of the DR 0024.
In calculating the sales and use tax reported in Part 2, the
tax must be calculated on the full purchase price of the
motor vehicle. The purchase price includes the full amount
paid, or promised to be paid, by the buyer at the time of
purchase, excluding only any direct federal tax and any
state and local sales tax imposed on the sale. Any fees the
retailer charges that are not optional for the purchaser are
included in the taxable purchase price.
If the purchaser trades in a motor vehicle they own as part
of a transaction to purchase the motor vehicle, the fair
market value of the trade-in is excluded from the taxable
purchase price, so long as the motor vehicle the purchaser
trades in is subject to licensing and registration.
Part 3. Sales/Use Tax Payment for Home Rule City
If the vehicle will be registered in a home rule city, the retailer
must calculate and report any sales or use tax imposed by the
home rule city on the taxable amount as prescribed by the city.
Part 4. Total Amount Due with DR 0024
Enter the sum of the amounts entered in Parts 2 and 3
under “Tax Remitted with DR 0024.” The retailer must remit
the total amount due to the county clerk along with the
DR 0024 and the titling paperwork.