Colorado Software Maintenance Agreement
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FAQ
Retailer- contractors must, like any other retailer, collect and remit to the Department of Revenue all state and state- administered local sales taxes on all retail sales.
The Denver Revised Municipal Code (DRMC) imposes sales or use tax on the purchase price for software programs, software as a service, software license fees, and software maintenance agreements (collectively referred to in this tax guide as ?software?).
[§39-26-105(2) C.R.S.] For warranties and maintenance agreements which are mandatory and part of the purchase price of the item the warranty covers, in most cases the seller must collect sales tax on the total purchase price.
Mandatory Maintenance Agreements For maintenance agreements which are mandatory and part of the purchase price of the item, the vendor must collect sales tax on the total purchase price paid. No additional sales or use tax is due on the materials being used in performing the maintenance agreement.
In general, SaaS is considered a non-tangible service; therefore, it is not subject to sales tax at the state level in Colorado.
Colorado does not generally impose sales tax on services. However, sales tax is imposed specifically on intrastate telephone and telegraph services, as well as gas and electric service for commercial consumption.
What are the highest sales tax rates in Colorado? Winter Park ? 11.2% sales tax. 2.9% state tax, 1.3% Grand County tax, 7% Winter Park tax. Empire ? 10.55% sales tax (tie) ... Idaho Springs ? 10.55% sales tax (tie) ... Silverton ? 10.4% sales tax (tie) ... Snowmass Village ? 10.4% sales tax (tie)
