The Colorado Department of Revenue (DOR) issued Private Letter Ruling concluding that up-front lease payments for motor vehicle leases requiring recurring periodic payments are sourced to the primary property location like the recurring payments, and the lessor must collect applicable state and local sales taxes rather than use taxes on those up-front payments. For jurisdictions where the lessor has no physical location, it must remit collected local sales tax on up-front lease payments using form DR 0026 rather than its sales tax return. [Colo. Dep’t of Revenue, PLR 26-001, 04/20/26]
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