CITY OF STERLING 

   2017  
   SALES & USE TAX RETURNS 
                  
 IMPORTANT SALES TAX INFORMATION 
                  
   KEEP THIS BOOKLET 
                  
           CONTENTS 
                  
  General instructions 
  Specific instructions 
  Annual supply of tax returns 
  Taxpayer’s copies of returns 
  Account change/closure form 
  Claim for exemption   from Sterling tax 
                  
 PLEASE FILE IN A SAFE PLACE 

                                 City Of Sterling 

                Sales and Use Tax Returns 

                GENERAL INSTRUCTIONS 
 
FORMS FOR REPORTING: This booklet contains the forms you will need to report and send 
payments of City of Sterling sales and use tax for the calendar year.  Sales / use tax returns printed 
with your business and billing names, address, and account number, plus the period covered and due 
date for each return will be supplied unless you request that none be sent.  (However, many businesses 
prefer to use their own return forms, or those supplied by tax preparation services, and this practice is 
encouraged.)  Please be careful to use the return with dates that corresponds to the period for which 
you are filing. Blank sales / use tax returns are available from the Sterling Finance Department, or on 
the City’s website at www.sterlingcolo.com under the “Forms” tab. 
 
KEEPING RECORDS:  The law requires you to keep records of both purchases and sales, including 
sales invoices and purchase orders, for a minimum of three years.  Be sure to retain copies of your 
sales / use tax returns.  Records must be open for inspection by authorized auditors or other official 
representatives of the City of Sterling. 
 
All the money paid by the purchaser to you (the seller) as city sales / use taxes is, by law, public 
money which is the property of the City of Sterling.  Failure to file a return and pay the taxes collected 
is a violation of the law, and will result in an assessment from the City for an estimated amount of tax 
due.  Therefore, it is important to file a return and pay all taxes collected on a timely basis, and to 
maintain sufficient records to prove the amount of taxes collected and paid.  Sales / use tax returns 
must be filed even when a business has no sales activity and/or tax liability. 
 
The burden of proof for exempt sales rests with the seller.  A form entitled Claim For Exemption From 
Sterling Tax is included in this booklet.  It is to be used by vendors to document deductions for exempt 
sales.   
 
CHANGES OR CLOSURES: The Sterling city code requires that you must notify the city if one or 
more of the following occurs:  
 
         (1) Change of business location. 
         (2) Change of mailing address. 
         (3) Change of business or trade name. 
         (4) Sale of the business. 
         (5) Merger of the business with another business. 
         (6) Closure / termination of operation of the business. 
 
In order to inform the city of changes, please place an “X” on the appropriate line in the boxes near the 
bottom of the sales tax return.  If necessary, you may explain details in the space provided, or on an 
attached sheet of paper.  You may use the Account Change or Closure Form, included in this booklet, 
to notify the city of any change in the business (or d/b/a) name, business or mailing address, or contact 
person, or to notify the city that you are no longer in business here, and need to close your sales / use 
tax account.  If the business ownership changes, the new owner must apply for his/her own sales / use 
tax account.  Please remember that a vendor selling or closing the business must still file a final sales / 
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use tax return on or before the 20  day of the month following the close or sale of the business. 
         IMPORTANT POINTS TO REMEMBER 
 
 A return MUST be filed even when no tax is due. 
 
 Please read the SPECIFIC INSTRUCTIONS (next page) thoroughly before completing your         
  return form.  Because of its simplicity, the short form has no instruction page. 

 Be careful to use the return that corresponds to the period for which you are filing. 
 
 You are welcome to send your completed and signed returns in the envelopes provided. 
 
 Enclose your check, payable to City of Sterling. 
 
 Please do not staple your check to the return. 
 
 All returns filed after the due date must be accompanied by the appropriate penalty and interest 
  (see lines 10A and 10B of the regular return, or lines 6A and 6B of the short form return). 
 
 Rounding amounts on returns to the nearest dollar is an acceptable means of completing your 
  return.  To use this method, round all amounts from 0 to 49 cents down to zero cents, and all 
  amounts from 50 to 99 cents up to the next dollar. 
 
Returns must be filed with the City of Sterling at the address below, or in person at the Finance 
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Department at City Hall, on or before the 20  day of the month following the close of the tax period.  
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(If the 20  falls on a holiday or a weekend, your due date is the next available working day.)  Mailed 
returns must be postmarked by the due date, or late penalties and interest are due. 
 
    FOR ADDITIONAL INFORMATION, CONTACT: 
 
      City of Sterling 
      Finance Department 
      P. O. Box 4000 
      Sterling, CO 80751 
     
      Telephone: (970) 522-9700 
      FAX:  970-521-0632 
     
      E-mail: salestax@sterlingcolo.com 
 
The following pages are specific instructions for the standard Sales / Use Tax returns, a blank 
optional (simplified) return, your personalized standard returns, and other forms. 
 

          SPECIFIC INSTRUCTIONS FOR SALES / USE TAX RETURN 
 
LINE 1          GROSS SALES AND SERVICES: Report all receipts for the period covered.  This 
                should include all sales, both retail and wholesale; services rendered; rent receipts; and 
                all amounts both taxable and non-taxable, which you received doing business. 
 
LINE 2          BAD DEBTS COLLECTED: Report the bad debts collected which were deducted on 
                a previous return on Line 4D – “Bad Debts Charged Off.” 
                
LINE 3          TOTAL LINES 1 + 2: Add Lines 1 and 2, and record the sum on this line. 
 
LINE 4          DEDUCTIONS: The following items are exempt from taxation: 
 
          A     Deduct all SERVICES that are non-taxable. 
 
            B   Deduct sales made to other STERLING-LICENSED RETAILERS who purchase such 
                merchandise for the purpose of resale to their consumers. 
 
          C     Deduct all sales delivered to the purchaser outside the city limits of Sterling only if 
                BOTH the following conditions exist: (a) the sale is to a purchaser who is a 
                nonresident of Sterling AND (b) delivery is made by common carrier, by conveyance 
                by the seller, or by mail to the purchaser at an address OUTSIDE the City of Sterling. 
 
            D   Deduct all sales WHICH WERE ORIGINALLY YOUR TAXABLE SALES, and which 
                you now deem “uncollectible” or “bad” and have written off as such. 
 
            E   Deduct the value of property traded-in, only if it will be resold in the usual course of 
                your business. 
 
            F   Deduct all your sales of gasoline and cigarettes. 
 
          G     Deduct all qualifying sales you made to tax exempt organizations. 
 
            H   Deduct all your sales that were returned by the purchaser and were reported as your 
                taxable sales on a previous return. 
 
            I   Deduct all your qualifying sales of prescription drugs and prosthetic devices. 
 
          J – L   Deduct all other exemptions not covered on Lines 4A through 4I.  OTHER 
                DEDUCTIONS MUST BE IDENTIFIED in the space provided.  Restaurant utility 
                credits are presently not permitted in Colorado.  If they are resumed, they must be 
                submitted on Form DR 1465, filled out in their entirety and submitted with the 
                appropriate return. 
 
                TOTAL DEDUCTIONS: Total all deductions claimed in Lines 4A through 4L. 
 
LINE 5          NET TAXABLE SALES & SERVICES: Subtract “Total Deductions” from Line 4. 
 
LINE 6          AMOUNT OF CITY TAX: Report the amount of sales tax calculated.  The sales tax is 
                calculated by multiplying Line 5 – Net Taxable Sales & Services – by the sales tax 
                rate, which is currently 3% (multiply by 0.03). 
 
LINE 7          EXCESS TAX COLLECTED: Report the amount of tax collected in excess of the 3% 
                calculated rate of tax on Line 6. 
 
LINE 8          TOTAL SALES TAX: Add Lines 6 and 7. 
 

LINE 9  USE TAX: Use tax is assessed on items that are used or consumed in the operation of 
        the business, and on which no city sales tax has been paid and no tax exemption 
        exists.  List all purchases on a separate sheet of paper as follows: Date of purchase, 
        name and address of vendor, type of product purchased, and purchase price.  Enter the 
        total purchase price of products in the blank labeled “Amount Subject to Use Tax” on 
        Line 9.  Then calculate the use tax by multiplying the total purchase price of products 
        by the effective use tax rate, which is currently 3% (multiply by 0.03). 
 
LINE 10 LATE RETURN PENALTY AND INTEREST: If you tax return was mailed or 
        dropped off after the due date, you are required to pay a penalty and interest.  The 
        penalty is 10% of Line 8 + Line 9.  The interest is 1% per month (or part of a month) 
        of Line 8 + Line 9.  Enter the total penalty and interest, and the sum of the two, in the 
        appropriate spaces under Line 10. 
 
LINE 11 TOTAL TAX, PENALTY & INTEREST: Add Lines 8, 9 and 10. 
 
LINE 12 UNDERPAYMENT ON PRIOR RETURN: An error notice, delinquent letter, or 
        Notice of Assessment will be sent to any taxpayer that is delinquent, or whose taxes 
        are underpaid.  Attach a copy of the notice to your return, and show underpayments 
        due to the City of Sterling on this line. 
 
LINE 13 OVERPAYMENT ON PRIOR RETURN: An error notice or notice of overpayment 
        will be sent to any taxpayer whose taxes are overpaid.  Attach a copy of the notice to 
        your return, and show the overpayment due you. 
 
LINE 14 TOTAL DUE AND PAYABLE: Add Lines 11 and 12 and subtract Line 13.  Make 
        your check or money order payable to the “City of Sterling.” 
                                           

            ACCOUNT CHANGE OR CLOSURE FORM 
 
Use this form to notify the City of Sterling of any change in the trade (or d/b/a) name, business or 
mailing address, or  contact person, or to notify the city that you wish to close your sales tax 
account.  If you are closing your account, please indicate the appropriate reason. 
 
                      TRADE NAME OR ADDRESS CHANGE 
 
  CURRENT NAME AND ADDRESS                        NEW BUSINESS NAME AND ADDRESS 

 Name                                            Name

 Address                                         Address

 City/State                                      City/State

                                                 ____ Business Address 
                                                 ____ Mailing Address 
                                                 ____ Both 
  
            CHANGE OF OWNERSHIP/BUSINESS CLOSURE 
 
 LAST DAY OF BUSINESS:                                 NEW OWNERSHIP INFORMATION 
 Reason:                                          Name
   ___ Ownership has Changed                      Address 
   ___ Business has been permanently discontinued  
   ___ Business has been sold                     City/State 

                              CHANGE OF CONTACT PERSON 
 
       CURRENT CONTACT PERSON                              NEW CONTACT PERSON 
 Name                                            Name
 Phone #                                         Phone # 
                                                  
 Fax #                                           Fax # 
 
 Authorized Signature                            Telephone Number      Account Number 

If your retail business location changes during a filing period you must file a separate sales tax 
return for the taxes collected at each location.