Colorado: Sales Tax Handbook

Colorado:

Are Leases and Rentals subject to sales tax?

While Colorado's sales tax generally applies to most transactions, certain items have special treatment in many states when it comes to sales taxes. This page describes the taxability of leases and rentals in Colorado, including motor vehicles and tangible media property. To learn more, see a full list of taxable and tax-exempt items in Colorado.

Motor Vehicles

TAXABLE

In the state of Colorado, a 2 dollar motor vehicle daily rental fee is imposed in addition to the regular taxes.

Tangible Media Property

TAXABLE

In the state of Colorado, they are considered to be exempt if there was lease or rental for three years or less and the lessor paid sales and use tax at the time of acquisition.

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