On September 1, 2021, Colorado added a Delivered checkbox to the DR0024 that must be checked if a dealer delivers the vehicle to a customer.

This has some major implications on the dealership because it means that the dealership must act as though the sale occurred at the Purchaser's address, requiring the dealership to collect sales tax for that address, not use tax.

This means that it doesn't matter where the dealership is located in relation to the customer, taxes must be collected as though the dealership and the customer's addresses are the same for the purposes of tax collection, and the dealership has to remit those taxes directly to the state with the DR0100 instead of to the DMV with the DR0024.

WE HIGHLY RECOMMEND NOT DELIVERING VEHICLES DUE TO THIS CHANGE - YOU REALLY DON'T WANT TO DEAL WITH THE IMPLICATIONS HERE

So, any sales that you mark as Delivered will require you to submit a unique DR0100 to the state, with different tax amounts, for each deal you close. This is why we're highly recommending you DO NOT use this Delivered checkbox and instead figure out a way for the customer to pick up the vehicle or arrange delivery to their home without any dealership assistance.

Getting Access to the Delivered Checkbox

While we do provide this functionality, we recommend against using it due to the changes you'll have to perform for the DR0100. If you choose to request access to this functionality in dealr.cloud in order to use this checkbox, you must be warned of the following:

  1. The dealr.cloud sales tax report WILL NOT WORK for Colorado and you'll be required to calculate values for your DR0100 manually.

  2. Accounting Implications

    1. Each jurisdiction will create its own, independent, accounting account and the amounts will be recorded separately in accounting.

    2. The out of area/title check will not include the sales tax amounts.

      1. Home rule amounts will be shown as out of area if it is not a shared jurisdiction, even if the vehicle is delivered.

  3. Dealr.cloud will show the sales tax amounts rather than the use tax amounts.

    1. If you're in Boulder county selling and delivering to Adams county (has a 0% use tax, .75% sales tax) dealr.cloud will enter .75% into the tax field when switching to Delivered.

  4. Cash Sales

    1. All sales tax amounts will be shown and collected on cash sales.

    2. Home rule amounts will not be collected, as they are currently not required to be collected for delivered vehicles. These amounts can be remitted to the DMV.

**If you run into issues with accounting or reporting due to using this functionality, you're on your own and you'll have to calculate your values manually for accounting and for reporting - we will not be able to help you.

If you want access to this functionality, send a request to dealr.cloud support.

We also recommend that you speak with the CIADA and attend their course on how this works in regards to the correct collection of taxes or if you have any questions regarding Deliveries and sales taxes.

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