Who is responsible for paying the Colorado Use Tax on the transfer of furniture and personal property?

The buyer is responsible for paying the Colorado Use Tax on the transfer of furniture and personal property. In the context of real estate transactions, the Use Tax is applicable when tangible personal property is purchased, brought into, or stored in Colorado. This tax is imposed on the buyer since they are the party receiving the furniture and other personal property from the seller.

While sellers may collect the tax at the point of sale, it is ultimately the buyer’s obligation to ensure that the Use Tax is paid to the state. The broker often plays a facilitating role in the transaction and may provide guidance about tax responsibilities, but they do not assume financial responsibility for the tax. The state government, meanwhile, is the entity that receives the tax revenue but is not responsible for paying it in this scenario. Understanding this responsibility clarifies the tax obligations that buyers need to consider when acquiring personal property in conjunction with real estate transactions.