Colorado –
On behalf of the Board we had requested a General Information letter On the applicability of state sales tax on the forthcoming allowance (July 1st) for retailers to impose the merchant discount fee or 2% surcharge on sales using credit.
“As noted above, a seller or lessor may not impose a surcharge if the customer elects to pay by cash, check, debit card, debit payment, or gift card. Furthermore, the seller or lessor must provide the surcharge amount as a separate line item on the customer’s receipt. Therefore, surcharges that comply with the statutory requirements, and are not used to shift part of the actual sales price to the surcharge, are not part of the taxable purchase price”
Please see attached and contact me with any questions.
ATTACHMENT
