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DR 0715 (11/16/16)
COLORADO DEPARTMENT OF REVENUE
Denver, CO 80261-0013
*DO=NOT=SEND* (303) 238-SERV (7378)
Application for Sales Tax Exemption for
Colorado Organizations Instructions
Charitable Use: Payment for items is to be made from organizational
Sales tax exemption certificates are issued to Colorado funds. Items are to be for the exclusively charitable purpose
located organizations which substantiate an exclusively for which exemption is granted. The exemption certificate
charitable purpose and activity within Colorado. cannot be used as a retailers license to purchase tax-ex-
empt items to be resold, nor to avoid collecting and remit-
Your organization may be non-profit for income tax purpos- ting taxes on donated or crafted items sold to individuals for
es, but not necessarily entitled to sales tax exemption. The use or consumption.
fact that some charity work is performed or that funds—all
or in part—are given to a charitable group does not auto- Political Districts and Federal Banks
matically qualify your organization for the Colorado sales/ Supply the information requested
use tax exemption. Use: The government exemption is allowed under the
statute regulation: Items must be used to conduct normal
To be considered a charitable organization you must be
functions of the District or Bank.
organized and operated exclusively for one or more of the
purposes specified in Section 39-26-102(2.5). “‘Charitable Order for goods must be made on a prescribed form or
organization’ means any entity organized and operated purchase order and paid for directly to the seller by warrant
exclusively for religious, charitable, scientific, testing for or check drawn on the organizations funds.
public safety, literary, or educational purposes, or to foster
national or international amateur sports competition (but Government-Federal, State and Local
only if no part of its activities involve the provision of athletic Though Federal, State and Local governments are
facilities or equipment), or for the prevention of cruelty to automatically exempt from paying sales/use tax per
children or animals, no part of the net earning of which in- 39-26-704(1), proof must be furnished to the seller in the
ures to the benefit of any private shareholder or individual, form of an exemption number. Orders for goods must be
no substantial part of the activities of which is carrying on made on a prescribed form or purchase order and paid
propaganda, or otherwise attempting to influence legisla- for directly to the seller by warrants drawn on government
tion, and which does not participate in, or intervene in funds. Individual exemption certificates are not issued to
(including the publishing or distribution of statements), any each office of governmental agencies. One blanket
political campaign on behalf of any candidate for public certificate is issued to the main office of the Federal
office, or any veterans’ organization registered under sec- and State agency.
tion 501(c)(19) of the ‘Internal Revenue Code of 1986’, as
amended, for the purpose of sponsoring a special event, Qualifying Affordable Housing Projects
Qualifying entities that own, lease, or construct qualifying
meeting, or other function in the state of Colorado so long
affordable housing projects may complete this application
as such event, meeting, or function is not part of such orga-
to request an exemption certificate to allow them to make
nization’s regular activities in the state.”
purchases for the project tax free. The exemption only
You are to clearly define your purpose and function. For applies to those purchases made directly for the project.
instance, an organization claiming exemption for educa- Please see FYI Sales 95 for additional information.
tion is to give information regarding structured curriculum,
scholastic requirements for teachers and students, atten- Mail completed form to:
dance requirements, tuition charged, and regular functions Colorado Department of Revenue
within confines of education. Denver, CO 80261-0013
