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CITY OF COLORADO SPRINGS TAX GUIDE INSURANCE COMPANIES AND AGENCIES Insurance companies and agencies must pay sales or use tax on tangible personal property purchased for use, storage, distribution or consumption in Colorado Springs. This includes tangible personal property purchased in settlement of a claim and also purchases of tangible personal property delivered into Colorado Springs for subsequent use by the company inside or outside the City. Insurance companies making retail sales to their local agencies or independent agents are required to collect and remit city sales tax. EXAMPLES 1. The local agency of the XYZ Insurance Company orders forms and supplies through its home office located out-of-state. The home office delivers the forms and supplies into Colorado Springs. Even though some of the forms and supplies are used at offices outside the City, all forms and supplies are taxable to Colorado Springs because they are delivered into the City. 2. Mrs. Wells, who is insured by the XYZ Insurance Co., has six, 5-piece place settings of sterling silverware valued at $5,000. Mrs. Wells' home is burglarized and the silverware is stolen. ABC Jewelry delivers a replacement set to Mrs. Wells and bills XYZ Insurance Company for the merchandise. The purchase of the silverware by XYZ Insurance Co. for Mrs. Wells is taxable. RELATED TAX GUIDE TOPIC Use Tax CS Code Section 2-7-102: LEGISLATIVE INTENT CS Code Section 2-7-201: IMPOSITION OF TAX CS Code Section 2-7-301: LEVY OF TAX IN GENERAL CS Code Section 2-7-312: TANGIBLE PERSONAL PROPERTY THE ABOVE INFORMATION IS A SUMMARY IN LAYMAN'S TERMS OF THE RELEVANT CITY OF COLORADO SPRINGS TAX CODE FOR THIS INDUSTRY OR BUSINESS SEGMENT. IT IS NOT INTENDED FOR LEGAL PURPOSES TO BE SUBSTITUTED FOR THE FULL TEXT OF THE CITY OF COLORADO SPRINGS SALES AND USE TAX ORDINANCE. Revised 3/28/00


Microsoft Word - Ag-insura.doc

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Microsoft Word - Ag-insura.doc