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FILING INSTRUCTIONS
Gross Sales and Services - Record all sales, both taxable and nontaxable, for the period covered including:
o
Line 1 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
Line 3G purchase must be paid for directly by the organization, with funds of the organization, and without the intent to be
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
Line 3I devices, orthopedic appliances, therapeutic devices, oxygen and related accessories, whether for human or animal
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 Adjusted City Sales Tax (Add Lines 5 & 6)
Deduct Vendor Allowance – You may deduct the amount of sales tax to be remitted if the return is filed by the due
Line 8 date. The vendor allowance is 3% of Line 7 up to $200 per reporting period, but not less than $3.00 per reporting
period.
Line 9 Total Tax Due (Line 7 less Line 8)
Line 10(a) Late filing – if filed after due date then add: Penalty equaling either $15 or 15% of Line 7, whichever is greater.
Line 10(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 11 Total tax, penalty and interest – Add Lines 9, 10 (a), and 10 (b).
Add: Prior period adjustment – These amounts may be credits from prior period transactions, adjustments for
Line 12A 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 12B 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 13 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.
CITY OF CENTENNIAL ,CO SALES TAX ETURN R NSTRUCTIONSI
REV 0/12/15
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