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Office of Economic Development and International Trade

Business Licensing Database
COMPUTER SALES

COMPUTER HARDWARE SOFTWARE

State

Colorado Department of Revenue
1375 Sherman St
Denver , CO   80261
(303)238-7378
Most product sales including hardware, packaged software and computer parts, are subject to sales tax. Contact the Department of Revenue regarding sales tax licensing regardless of whether a business sells retail, wholesale, on consignment or at events.

Link:  http://www.revenue.state.co.us/fyi/html/sales09.html
The following items must have sales tax collected on them:

All hardware (console, printer, modem, disc drive, etc.) Prepackaged software programs for use with personal computers. "Canned" software programs that are not created specifically for the user.
The following transactions which are primarily services are generally exempt from sales tax: Software program that has been custom-designed and prepared by the vendor to meet the customer's requirements; if multiple copies of program are provided, sales tax DOES apply. Software that is prepackaged but adapted or modified by the vendor in order to be usable to the customer DOES have sales tax but the service by the vendor is not taxable. See FYI Sales 52, Service Enterprises.

Link:  http://www.revenue.state.co.us/fyi/html/sales52.html
NOTE:  Electrician's license is generally not necessary for data processing equipment installation.

page last updated 9/11/03

The Colorado Revised Statutes are available on line at http://198.187.128.12/colorado/lpext.dll?f=templates&fn=fs-main.htm&2.0. You can locate a statute of interest by searching either on the citation given in the database (e.g., 18-5-307) or on a keyword or phrase.

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