Colorado sales tax is required to be collected on the purchase price paid or charged on all retail sales and purchases of tangible personal property, unless specifically exempted by statute. Use tax is levied on retail purchases of tangible personal property that is stored, used, or consumed in Colorado when sales tax was not collected at the time of the purchase. The State’s sales and use tax rates are both 2.9 percent.

Section 39-21-305(1)(c.5) and (d), C.R.S., requires the State Auditor to evaluate all of the State’s tax expenditures at least once prior to the legislative session before they are scheduled to expire and gives the State Auditor discretion to evaluate an expenditure again if there have been substantial changes to the expenditure. Additionally, Section 39-21-306, C.R.S. requires that we annually report on the impact of the State’s policy of using federal taxable income as the basis for Colorado taxable income including any changes that may significantly impact the State's tax base.