Colorado § 39-26-111 Credit sales

Colorado Statutes

§ 39-26-111 — Credit sales

Colorado·Title 39 Taxation·Art. Sales and Use Tax

(1)In case of a sale upon credit, or a contract for sale wherein it is provided that the price shall be paid in installments and title does not pass until a future date, or a chattel mortgage or a conditional sale, there shall be paid upon each payment, upon the account of purchase price, that portion of the total tax which the amount paid bears in the total purchase price. Notwithstanding any other provision of this subsection (1), a retailer doing business wholly or partly on a credit basis may, at his election, make a return, and remit sales tax on credit sales, on the basis of the aggregate amount of cash received during the month from taxable credit sales. The retailer may determine the tax to be remitted on the basis of his reasonable estimate of the aggregate amount of tax

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(1) In case of a sale upon credit, or a contract for
sale wherein it is provided that the price shall be paid in installments and title does
not pass until a future date, or a chattel mortgage or a conditional sale, there shall
be paid upon each payment, upon the account of purchase price, that portion of the
total tax which the amount paid bears in the total purchase price. Notwithstanding
any other provision of this subsection (1), a retailer doing business wholly or partly
on a credit basis may, at his election, make a return, and remit sales tax on credit
sales, on the basis of the aggregate amount of cash received during the month from
taxable credit sales. The retailer may determine the tax to be remitted on the basis
of his reasonable estimate of the aggregate amount of tax which he has collected
from his credit customers during the month. A retailer's estimate of the taxes
collected on credit sales made in any month (referred to in this section as base
month) shall be deemed reasonable if the cumulative sum of the monthly amounts
of taxes on such credit sales remitted by the retailer on or before the close of the
third, sixth, ninth, twelfth, and fifteenth calendar months following the base month
is not less than twenty-five percent, forty-three and seventy-five one-hundredths
percent, sixty-two and five-tenths percent, eighty-one and twenty-five one-hundredths percent, and one hundred percent, respectively, of the total taxes due
on the aggregate credit sales made by the retailer in the base month. In no event,
however, shall the amount of taxes remitted by the retailer in any month be less
than the amount which the retailer actually estimates to have been collected in that
month.

(2) If a retailer transfers, sells, assigns, or otherwise disposes of an account
receivable, he shall be deemed to have received the full balance of the
consideration for the original sale and shall be liable for the remittance of the sales
tax on the balance of the total sale price not previously reported; except that such
transfer, sale, assignment, or other disposition of an account receivable by a
retailer to a closely held subsidiary, as defined in section 39-26-102 (10)(k), shall not
be deemed to require the retailer to pay the sales tax on the credit sale represented
by the account transferred prior to the time the customer makes payment on said
account.

Colorado § 39-26-111 (Credit sales) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Legislative History

Source: L. 35: p. 1008, � 5. CSA: C. 144, � 12. L. 37: p. 1084, � 1. CRS 53: � 138-6-11. C.R.S. 1963: � 138-5-11. L. 79: Entire section amended, p. 1446, � 37, effective July 3.