Resale certificates by state
Colorado resale certificate
The official form, whether Colorado takes the multistate certificates, and what buyers and sellers need to do to keep a resale purchase tax-free.
Official sources checked
Quick answer
- Official form
- Declaration of Wholesale or Entity Sales Tax Exemption (DR 5002) · Get the form (opens in a new tab)
- Issued by the Colorado Department of Revenue, Taxation Division.
- Expires?
- No set expiry
- DR 5002 has no expiration date of its own and can cover multiple purchases claiming the same exemption. However, the seller should re-check the buyer's license after its expiration date. Colorado sales tax and wholesale licenses expire December 31 of odd-numbered years.
- Accepts the SST certificate?
- Unconfirmed
- Accepts the MTC certificate?
- Yes, with limits
- Out-of-state buyers can use it?
- Yes
- The Colorado Sales Tax Guide says a retailer may accept a fully completed DR 5002 from an out-of-state purchaser, or inspect a license issued by another state's tax agency. DR 5002 asks for the number, state, and expiration date of the purchaser's sales tax license.
- Buyer must be registered in Colorado?
- No
- A valid, current sales tax license from Colorado or from another state's tax agency is acceptable.
How to fill out and accept the certificate
- Line 1: legal name, trade name, mailing address, and phone. Also give the license number, issuing state, and expiration date; for a Colorado license, enter only the 8-digit account number, not the 12-digit location ID.
- Line 2: check 'Purchase for Resale' and describe the ordinary course of business, including the products sold.
- Line 5: purchaser or authorized person prints name, title, signs, and dates. Seller: verify the license on Revenue Online (keep the number and expiration date) or keep a copy of the license, and re-verify after it expires.
When a seller is protected
The seller carries the burden of proving a sale was exempt. For resale claims, the seller must verify that the purchaser's sales tax license is current and valid at the time of sale, either online at Colorado.gov/RevenueOnline or by inspecting and copying a physical license. The seller must also consider whether the goods fit the claimed resale use and must collect tax if a doubt cannot be resolved.
Seller record-keeping
Retailers must keep books, records, and invoices of goods purchased for resale for at least three years, and must keep a copy of any DR 5002 or other exemption form accepted from an out-of-state purchaser (Colorado Sales Tax Guide, Part 9).
Common mistakes
- Claiming resale on items the buyer will use or consume; the form says the resale exemption is not available to the user or consumer of the item.
- Entering the 12-digit Colorado location ID instead of the 8-digit account number, or not verifying the license at the time of sale.
- Continuing to rely on a license past its expiration date (December 31 of odd-numbered years) without re-verifying.
Multistate certificates in Colorado
SST Certificate of Exemption
Unconfirmed
Colorado is not a Streamlined Sales Tax member, and we found no official statement on whether it accepts the SST certificate.
MTC Uniform Resale Certificate
With limits
MTC note: Cannot be used to buy taxable services for resale. Good for taxes the Colorado DOR administers (sellers should review Rule 39-26-105-3), but self-collecting home-rule cities may not accept it.
Colorado resale certificate FAQ
What form is used for a resale certificate in Colorado?
Colorado's resale certificate is the Declaration of Wholesale or Entity Sales Tax Exemption (DR 5002), published by the Colorado Department of Revenue, Taxation Division. Download it from the Colorado Department of Revenue, Taxation Division website; sellers keep the completed certificate rather than sending it to the state.
Does Colorado accept multistate resale certificates?
Colorado is not a Streamlined Sales Tax member, and we found no official statement on whether it accepts the SST certificate. Colorado is on the Multistate Tax Commission's list of states that accept its Uniform Sales & Use Tax Resale Certificate, with a state-specific restriction. MTC note: Cannot be used to buy taxable services for resale. Good for taxes the Colorado DOR administers (sellers should review Rule 39-26-105-3), but self-collecting home-rule cities may not accept it.
Do Colorado resale certificates expire?
DR 5002 has no expiration date of its own and can cover multiple purchases claiming the same exemption. However, the seller should re-check the buyer's license after its expiration date. Colorado sales tax and wholesale licenses expire December 31 of odd-numbered years.
Can an out-of-state business use a resale certificate in Colorado?
The Colorado Sales Tax Guide says a retailer may accept a fully completed DR 5002 from an out-of-state purchaser, or inspect a license issued by another state's tax agency. DR 5002 asks for the number, state, and expiration date of the purchaser's sales tax license.
Related reading
- Colorado sales tax guide: rates, nexus thresholds and filing rules
- Resale certificates: who qualifies and how to get one
- How out-of-state resale certificates work
- Sales tax exemption guide
Sources
- DR 5002 Declaration of Wholesale or Entity Sales Tax Exemption (PDF) (opens in a new tab)
- DR 5002 form page (opens in a new tab)
- Colorado Sales Tax Guide (opens in a new tab)
- Colorado Revenue Online (Verify a License or Certificate) (opens in a new tab)
- MTC Uniform Sales & Use Tax Resale Certificate (rev. 10/14/2022) (opens in a new tab)
- SST member state list (non-member) (opens in a new tab)
- Colorado DOR: Certificates of Exemption (opens in a new tab)
This page is general information, not tax or legal advice. Forms and rules change, so confirm with the Colorado Department of Revenue, Taxation Division before you rely on a certificate.
Resale certificates in other states
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