CITY OF FEDERAL HEIGHTS 
  SPECIFIC INSTRUCTIONS FOR SALES TAX RETURNS 
                                   
LINE 1 GROSS SALES AND SERVICE: Report all receipts for the period covered; 
  include all sales, both retail and wholesale; services rendered; rent receipts; and 
  all amounts, both taxable and nontaxable, received in the conduct of your 
  business. 
 
Line 2A       BAD DEBTS COLLECTED:  Report the bad debts collected which were 
  previously deducted on Line #D – “Bad Debts Charged Off”. 
 
LINE 2B TOTAL LINES 1 AND 2A: Add lines 1 and 2A. 
 
LINE 3  DEDUCTIONS – The following items are exempt from taxation: 
 
 3A Deduct all services which are nontaxable 
 
 3B Deduct sales made to other city licensed retailers who purchase such materials 
  for the purpose of resale to the consumer. 
  
 3C Deduct all sales delivered to the purchaser outside the city limits of Federal 
  Heights if BOTH the following conditions exist: (a) The sale is to a purchaser who 
  is a nonresident of Federal Heights.  (b) Delivery is made by common carrier, 
  conveyance by seller, or by mail to the purchaser OUTSIDE the City of Federal 
  Heights. 
  
 3D Deduct all sales which were originally taxable sales and which you deem 
  “uncollectible” and have written off as such. 
  
 3E Deduct the value of property traded-in, which will be resold in the usual course of 
  business. 
  
 3F Deduct all sales of gasoline and cigarettes. 
  
 3G Deduct all sales to organizations which PROVIDE an exemption certificate and if 
  the purchases are made in conjunction with their exempt status. 
  
 3H Deduct all sales which were returned by the purchaser and were previously 
  reported as net taxable sales. 
  
 3I Deduct all sales of medical supplies, prescription drugs and prosthetic devices 
  prescribed. 
  
 3J-3L Deduct all other exemptions not covered on line 3A-3L.  Other deductions must 
  be explained in space provided. 
  
  TOTAL DEDUCTIONS:  Total all deductions claimed in lines 3A through 3L. 
 
LINE 4 TOTAL CITY NET TAXABLE SALES AND SERVICES:  Subtract TOTAL 
  DEDUCTIONS on line 3 from line 2B. 
 

LINE 5 AMOUNT OF CITY SALES TAX:  Report the amount of sales tax calculated.  
  The sales tax is calculated by multiplying line 4 – “NET TAXABLE SALES AND 
  SERVICES” by the effective sales tax rate of 4%. 
 
LINE 6 EXCESS TAX COLLECTED:  Report the amount of tax collected in excess of the 
  effective rate of tax levied on retail sales. 
 
LINE 7 ADJUSTED SALES TAX:  Add lines 5 and line 6. 
 
LINE 9 TOTAL SALES TAX DUE:  Amount from line 7. 
 
LINE 11 TOTAL TAX DUE: Amount from line 9. 
 
LINE 12 LATE FILING: Report the penalty assessed for filing after the due date.  The 
  penalty is 10% of line 9 ($15 minimum).  Report the interest which is 1% per 
  month of line 9.  Enter the total penalty and interest in the appropriate space on 
  line 12. 
 
LINE 14 ADJUSTMENTS PRIOR PERIODS: Report UNDERPAYMENT or 
  OVERPAYMENTS to returns previously filed or amended.  Note:  All amounts 
  reported as prior period adjustments must be supported by written 
  documentation. 
 
LINE 15  TOTAL DUE AND PAYABLE:   Add lines 13 and 14 (A and B).  Make check or 
  money order payable to City of Federal Heights.