How to Claim a Sales Tax Refund in Colorado

Are you a savvy shopper or business owner in Colorado looking to reclaim sales tax on eligible purchases? Understanding the process of claiming a sales tax refund in Colorado is crucial, and we've got you covered. In this blog, we'll walk you through a step-by-step guide to ensure you navigate the Colorado Department of Revenue's requirements seamlessly.

1. Eligibility Check:

Before diving into the paperwork, ensure you qualify for a sales tax refund in Colorado. Common scenarios include purchases intended for resale, manufacturing, or out-of-state use. Knowing your eligibility sets the foundation for a successful refund claim.

2. Document Your Purchases:

Keep your paperwork in order! Detailed records, such as receipts and invoices, serve as the backbone of your refund claim. The more organized your documentation, the smoother the process will be when submitting your application.

3. Form DR 0137:

Download and complete Form DR 0137, the "Application for a Consumer's Colorado Sales Tax Refund." This essential document can be found on the Colorado Department of Revenue website. If needed, you can request a physical copy from the department directly.

4. Providing Necessary Information:

Fill out the form with accurate information about yourself and the nature of the purchases for which you're seeking a refund. Be thorough in detailing the amount of sales tax paid, ensuring there are no discrepancies that might delay your claim.

5. Attach Supporting Documents:

Don't forget to supplement your application with the necessary documentation. Attach clear copies of your receipts and any other relevant paperwork that supports your claim. A well-documented application increases your chances of a hassle-free approval.

6. Submission Process:

Once your form is complete and documents are in order, submit them to the Colorado Department of Revenue. Mailing your application to the provided address or submitting it online, if available, is the next step in the process.

7. Patience is Key:

The review process takes time. Be patient while the Colorado Department of Revenue assesses your claim. If additional information is required, they will likely reach out to you. Stay informed and responsive throughout this period.

8. Receiving Your Refund:

Upon approval, your sales tax refund will be issued. Depending on your preferences, you may receive it via check or direct deposit. Ensure the accuracy of your provided details to avoid any delays in receiving your hard-earned refund.

9. Follow-Up if Necessary:

If your refund takes longer than expected or you have questions about your claim, don't hesitate to contact the Colorado Department of Revenue for assistance. Clear communication ensures a smooth resolution to any concerns.