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                                                                                                            FILING INSTRUCTIONS 
                                                                                                                                             
                   Gross Sales and Services - Record all sales, both taxable and nontaxable, for the period covered including: 
 Line 1               o Retail Sales 
                      o Services and labor rendered 
                      o Rental and lease receipts 
                   The total of all nontaxable sales will be deducted on Line 3. 
 Line 2A           Bad debts collected - Report the bad debts collected in this reporting period that were deducted in any previous 
                   reporting period. 
 Line 2B           Total - Add lines 1 and 2A. 
                   Deductions – Deduct nontaxable sales; the deductions should be amount that you included in the gross sales and 
                   services listed on line 1 on this return.  You may not deduct your business expenses as you would for income tax 
 Line 3            purposes.  The sales tax is on sales transactions, not profits.  List each deduction category separately then show the 
                   sum at the bottom on the line labeled “3. Total Deductions.”  If your total deductions exceed the line 1 amount, 
                   please make a note explaining which previous returns included the amounts you are deducting. 
 Line 3A           Non-taxable service sales - Deduct all services that are nontaxable (e.g. labor and professional fees, if separately 
                   stated on the invoice).  Do not deduct fabrication labor since it is taxable. 
 Line 3B           Sales to other licensed dealers for purposes of resale - Deduct sales made to other licensed retailers who 
                   purchased your merchandise for the purpose of resale to the consumer. 
 Line 3C           Sales shipped out of City - Deduct all sales delivered or mailed to a purchaser outside of the Centennial city limits. 
                   Bad debts charged off - Deduct uncollected sales that were reported as taxable sales in a previous period.  The sales 
                   must be ‘written off’ and deemed uncollectible.  If bad checks are deducted, only the portion of the returned check 
 Line 3D           attributable to the purchase of taxable goods can be deducted.  If you collect that debt in the future, you will need to 
                   add it on line 2A and remit the sales tax.  Bad debt deductions are not allowed on motor vehicles or on secured 
                   property. 
 Line 3E           Trade-ins for taxable resale – For transactions subject to City sales tax, deduct the amount allowed for a trade-in, up 
                   to the fair market value, if you will resell the goods in the normal course of business. 
 Line 3F           Sales of gasoline and cigarettes – Deduct all sales of cigarettes and gasoline. 
                   Sales to governmental, religious and charitable organizations –  Deduct sales to governmental entities, or to 
                   organizations which have been specifically exempted by the City of Centennial.  To qualify for tax exemption, the 
                   purchase must be paid for directly by the organization, with funds of the organization, and without the intent to be 
 Line 3G           reimbursed by any individual.  Purchases made using cash or a personal check or credit card are not exempt.  To 
                   document this deduction for non-governmental entities, you should obtain a copy of proper exempt certificates issued 
                   to the organization. 
 Line 3H           Returned goods – Deduct the selling price of goods which have been returned for a refund, if City sales tax was 
                   charged on the original sale. 
                   Prescription drugs and prosthetic devices – Deduct the sale of prescription drugs, medical supplies, prosthetic 
                   devices, orthopedic appliances, therapeutic devices, oxygen and related accessories, whether for human or animal 
 Line 3I           consumption, if sold by prescription or recommendation of a licensed practitioner.  Items such as spas and hot tubs are 
                   not exempt, even if prescribed by a doctor, since they are not designed specifically as therapeutic devices. 
 Line 3J           Food – Deduct sales of food items sold for preparation and/or consumption at home.  Prepared food or food sold for 
                   immediate consumption, as at a restaurant, gift shop, snack bar, or like establishment, is not exempt from sales tax.   
 Line 3 K/L        Other deductions (list) – Deduct non-taxable sales not included in above categories.  You must provide an 
                   explanation of the deduction along with an amount. 
 Line 3 M          Total of all deductions.  Note that all deductions must be properly documented or they may be disallowed.     
 Line 4            Subtract Line 3 M from Line 2B. 
 Line 5            Amount of City Sales Tax (Line 4 X 2.5%) 
 Line 6            Add:  Excess Tax Collected 
 Line 7            Total Tax Due (Add Lines 5 & 6) 
 Line 8(a)         Late filing – if filed after due date then add: Penalty equaling either $15 or 15% of Line 7, whichever is greater. 
 Line 8(b)         Late filing – if filed after due date then add: Interest equaling 1.5% per month on the amount of tax on Line 7 
 Line 9            Total tax, penalty and interest – Add Lines 7, 8 (a), and 8 (b). 
                   Add:  Prior period adjustment – These amounts may be credits from prior period transactions, adjustments for 
 Line 10A          mathematical errors or other similar situations.  Documentation must be attached to the return to verify and document 
                   this amount.  If no documentation is provided, the adjustment will be disallowed. 
                   Deduct:  Prior period adjustment - These amounts may be adjustments for mathematical errors or other similar 
 Line 10B          situations.  Documentation must be attached to the return to verify and document this amount.  If no documentation is 
                   provided, the adjustment will be disallowed 
                   Total Due and Payable – If this amount if $10 or less, you may record the amount due and carry the amount forward 
 Line 11           for payment on a future return when the threshold of $10 has been reached.  All returns must be filed until that 
                   threshold is realized and the cumulative sales tax paid to the City when the threshold is reached. 
 Vendor            For returns filed ONLINE ONLY – You may deduct the amount of sales tax to be remitted if the return is filed online 
                   and paid by the due date.  
 Allowance                                    Paper filed returns are not eligible for a vendor allowance. The vendor allowance is 3% 
                   of Line 7 up to $200 per reporting period, but not less than $3.00 per reporting period. 
 
CITY OF CENTENNIAL ,CO                                                                                      SALES TAX  ETURN R NSTRUCTIONSI  
REV 10/18 






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