What is use tax and how do I pay it?
Sales/Use tax returns can be filed online through www.salestaxonline.com. The following is information regarding the City of Thornton's 3.75% use tax. All businesses operating in the City are subject to Use Tax. Use Tax is a term which is used interchangeably with sales tax. In other words, use tax is simply the sales tax that did not get charged to your business by your vendor at the time you made a purchase. When the City sales tax is not collected by the vendor upon your purchase of taxable goods or services, you are required to pay that sales tax directly to the City of Thornton as Use Tax.
Virtually any tangible property that is purchased by a business which is not going to be resold is subject to use tax. This includes items which are delivered to your place of business in the City as well as items which are purchased elsewhere and brought into the City.
Businesses operating in the City should review all purchase invoices to determine if the City portion of the sales tax (3.75%) has been charged. You will know that Thornton's city tax has not been correctly charged if the invoice includes a total sales tax which is not either 7.75% or 8.5%. All taxable purchases for which the Thornton sales tax has not been charged should be itemized on your tax return in schedule B.
The total of such purchases should be recorded on line 10 on the front of the return, and payment for the use tax added to all sales tax reported for the applicable reporting period. Some of the most commonly missed use taxable items are software, maintenance contracts, printed brochures and mailers, and leased tangible property. For a better understanding of the goods and services which are subject to sales and use tax, the City recommends that you obtain a copy of the City's code sections relating to taxation.
A copy can be requested by calling 303-538-7400. Or you may download the City's Taxation Code.