Why am I being Charged Sales Tax at Auction?
Sales tax is charged on auction purchases unless a valid tax exemption applies. Under Colorado law, the seller is responsible for ensuring that a transaction qualifies for resale or tax exemption. Because of this, Roller Auction must collect sales tax unless proper documentation has been submitted and approved.
When Sales Tax Is Charged
Sales tax will typically be charged if:
• A tax license or resale certificate has not been submitted
• The license has not yet been approved
• The license has expired or is invalid
• The purchase does not qualify for resale under Colorado regulations
If none of these conditions apply, sales tax will automatically be included on your invoice.
When Sales Tax May Be Removed
Sales tax may be removed if you have submitted a valid sales tax license or resale certificate and the purchase qualifies as part of your normal business operations.
Approval of tax exemption is at the discretion of Roller Auction based on the documentation provided.
For example, if your business regularly sells construction equipment, purchases of similar equipment may qualify for resale exemption.
However, if your business sells used vehicles and purchases a piece of heavy equipment such as a wheel loader, the purchase may not qualify unless you can demonstrate that selling heavy equipment is part of your normal business operations.
Colorado Sales Tax Requirements
In Colorado, the burden of proof is on the seller to ensure that a purchase qualifies for resale exemption.
For additional information, you can review the Colorado Department of Revenue documentation here:
https://tax.colorado.gov/sites/tax/files/documents/DR5002_2023.pdf
How to Request Sales Tax Removal
If you believe your purchase qualifies for tax exemption, you can submit your tax license for review.
Email a copy of your license to:
Please include:
• Your bidder number
• Your full name
• Your business name (if applicable)
Our team will review the documentation and update your account if appropriate.
Important Reminder
Sales tax must be collected unless proper documentation has been submitted and approved. To avoid delays, we recommend submitting your tax license before bidding.
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