Special / Multiple Event Functions

Why do I have to have one if I have a Colorado State Sales Tax License?

Special / Multiple Event licenses have a number of functions.

• They allow the correct jurisdiction to receive the local sales tax.
  Example: Joe sells knives. He has a store in Grand Junction, CO, but he also operates a booth for an event in Rio Blanco County. Joe files his regular 7.65% sales tax return monthly for his sales from the store in Grand Junction (2.9% CO State sales tax and 4.75% Grand Junction and Mesa County sales tax). When he sells from his booth in Rio Blanco County, he collects 6.5% sales tax (2.9% CO State sales tax and 3.6% Rio Blanco County sales tax). He then remits this on a special event return so the 3.6% local sales tax goes to the correct jurisdiction (Rio Blanco County). This is the only event that Joe does all year.
• They allow organizers to track retail sales from a specific event.
  Example: Lori sells blankets. She has a store in Meeker, CO, but sells at different locations around the state AND within her jurisdiction. She has a booth at the local fair every year. She collects the same 6.5% sales tax as she does at her store (they are in the same jurisdiction) but she remits her tax on a multiple event return so the sales tax from the event can be kept separate from her store sales. She also sells at the Mesa County fair and remits that sales tax on a multiple event return. She sells at different events more than once a year. (These examples are fictional and may not be actual representations of the sales tax laws and/or rates of the jurisdictions mentioned). It is advisable to contact any jurisdiction before an event to find out their specific rates, rules, regulations, and licensing requirements.
• They allow people who do not have a business location to sell a limited number of times per year without having to possess a standard sales tax license. The special event license fee is $8 for each event and the multiple event license fee is $16 for two years. For vendors holding a sales tax license, there is no fee. Further information can be found at the Colorado Department of Revenue. You may also email Norm Townley or call 303-866-5643 for Special Event information at the Colorado Department of Revenue.

Every town and county go to great lengths every year to increase their sales tax revenues by coming up with new and exciting ways to entertain and offer unique experiences to the general public. If you come to my jurisdiction and sell your wonderful goods without remitting the sales tax on a special/multiple event license return, my sales tax revenues from my event are going back home with you. A lot of people will get the license and never remit the sales tax on it. It kind of defeats the purpose, doesn’t it? It also leaves us with errant information to plan for future events. Any entity that has a sales tax license and makes sales at these events must have a separate special/ multiple events license, complete a separate application, and remit the tax on a separate return. So please do the right thing and remember it’s the law!