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  • 1.  Use Tax

    Posted 10-09-2012 06:28 PM
    We have acquired a Survey Monkey subscription to gather data, but wonder if you would consider this as a subscription "consumable" or a service "non-consumable" for Use tax purposes. Any idea?

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    Marjorie Cheatum
    Director/Manager
    National Endowment For Financial Education
    Denver CO
    United States
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  • 2.  RE:Use Tax

    Posted 10-10-2012 09:37 AM


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    Mark Batson
    Director/Manager
    FUJIFILM Recording Media Mfg
    Bedford MA
    United States
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    Marjorie:

    Your organization is a 501c3 and I always thought exempt from most state sales and use tax.  Are you taxable in your state?

    The rules are specific by state so knowing the state would help.








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  • 3.  RE:Use Tax

    Posted 10-10-2012 09:31 PM
    Marjorie,

    From what I could discern from the Survey Monkey website, the product looks like a canned software application.

    I see also that you have a Denver address. The City of Denver is considered a Home Rule City.

    Since you mention Use Tax, I presume you have a process for accruing Use Tax.

    The State of Colorado recently changed their taxability of software - I believe it was effective July 1, 2012. But you are dealing with two levels of governmental jurisdictions. The City does not necessarily have to follow the same statutes as the state.

    I'll see if I can get you answer sometime thursday.

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    Thomas Concitis
    Director/Manager
    West Chester PA
    United States
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    Original Message


  • 4.  RE:Use Tax

    Posted 10-16-2012 03:35 PM
    Marjorie,

    Colorado regulations indicate that sales made to charitable organizations in the conduct of their regular charitable functions and activities are exempt from the sales tax.  The storage, use, consumption, or loan of tangible personal property to charitable organizations in the conduct of their regular charitable functions and activities is exempt from the use tax.  In determining whether an organization is charitable, the Department of Revenue is not bound by federal regulations or policy. However, if your organization exempt under Internal Revenue Code Sec. 501(c)(3) it will be treated as a charitable organization for Colorado purposes, unless the Department of Revenue has previously made its own determination regarding the organization's charitable status.


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    Allan Lyons
    Corporate Officer
    SQUIRE SANDERS & DEMPSEY LLP
    Stow OH
    United States
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    Original Message


  • 5.  RE:Use Tax

    Posted 10-25-2012 01:41 PM
    For software delivered electronically, the law was changed effective July 1, 2012 to indicate that the service is non taxable. Presumably, the City of Denver follows the state on this treatment.

    and, confirming the previous posts, Charitable organizations formed under 501.c 3 are generally exempt.

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    Thomas Concitis
    Director/Manager
    West Chester PA
    United States
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