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February 6, 2023
Question

Does anyone know what the special use tax question means? I ride RTD in Denver Co

  • February 6, 2023
  • 1 reply
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Special Districts with Additional Use Tax - the chart doesn't tell you if you use it or not.

1 reply

hbl3973
Employee
February 7, 2023

dvander14-yahoo-,

 

First of all, "use tax" is what a person or business is supposed to pay when they make a purchase but are not charged the sales tax that would have been charged had they purchased the item locally.  These days just about every major business providing goods and services over the internet already adds the sales tax appropriate to your home address and no use tax is due.  Chances are quite high this is your case.  In my volunteer tax preparation with AARP I have never seen a return with use tax set to other than zero.

 

Second, when it comes to itemized deductions, general sales tax paid is an alternative to state and local income tax.  General sales taxes are taxes on goods and services purchased by consumers. The tax is a calculated as a percentage of the retail price and added to the final purchase price paid by the consumer.  Thus any use tax that applies to your home address is a general sales tax and should be included in the total of state and local sales tax rates you would use with TurboTax or the IRS Sales Tax Calculator  

 

https://www.irs.gov/credits-deductions/individuals/use-the-sales-tax-deduction-calculator

 

The table on page 15 of the CO 104 booklet

 

https://tax.colorado.gov/sites/tax/files/documents/Book%20104_2022%20%282%29.pdf  

 

lists all the relevant add-ons to the state sales tax rate that may apply in your situation.