Instructions for completing a sales tax Return

PRINTABLE SALES TAX RETURN

LINE 1 GROSS SALES AND SERVICE: Report all receipts for the period covered; include all sales, both retail and wholesale; services rendered; rent receipts; and all amounts both taxable and nontaxable, received in the conduct of your business.

LINE 2A BAD DEBT COLLECTED:Report the bad debts collected which were previously deducted on Line 3D - "Bad Debts Charged Off."

LINE 2B TOTAL LINES I AND 2A: Add Lines 1 and 2.

LINE 3 DEDUCTIONS: The following items are exempt from taxation:

3A Deduct all services which are nontaxable.

 

3B Deduct sales made to other city LICENSED retailers who purchase such merchandise for the purpose of resale to the consumer.

3C Deduct all sales delivered to the purchaser outside the City limits of Durango if BOTH the following conditions exist: 

(a) The sale is to a purchaser who is a nonresident of Durango, and

(b) Delivery is made by common carrier, conveyance by the seller, or by mail to the purchaser OUTSIDE the City of Durango.

3D Deduct all sales which were originally taxable sales and which you deem "uncollectible/bad" and have written off as such.

3E Deduct the value of property traded-in, which will be resold in the usual course of business>3F Deduct all sales of gasoline and cigarettes.

3F Deduct all sales of gasoline and cigarettes.

3G Deduct all qualifying sales to exempt organizations.

3H Deduct all sales which were returned by the purchaser and were previously reported as net taxable sales.

3I-3K Deduct all other exemptions not covered on Lines 3A through 3H. Other deductions must be explained in space provided.

LINE 3 TOTAL DEDUCTIONS: Total all deductions claimed in Lines 3A through 3K.

LINE 4 TOTAL CITY NET TAXABLE SALES AND SERVICES: Subtract TOTAL DEDUCTIONS on Line 3 from Line 2B.

LINE 5 AMOUNT OF CITY SALES TAX: Report the amount of sales tax calculated. The sales tax is calculated by multiplying Line 4 - "Net Taxable Sales and Services' by Durango's 3.0% sales/use tax rate.

LINE 6 EXCESS TAX COLLECTED: Report the amount of tax collected in excess of the effective rate of tax levied on retail sales.

LINE 7 ADJUSTED CITY SALES TAX: Add Lines 5 and 6.

LINE 8 VENDOR'S FEE DEDUCTION — 3.33% OF LINE 7: Report a deduction equal to 3.33% of adjusted City sales tax due. THIS DEDUCTION IS ONLY ALLOWED IF TAX IS PAID ON OR BEFORE THE DUE DATE.

LINE 9 TOTAL SALES TAX DUE: Subtract Line 8 from Line 7.

LINE 10 CITY USE TAX: Use tax is assessed on items that are purchased for the business' own use and for which no city sales tax has been legally paid and no tax exemption exists. Calculate use tax by multiplying the total purchase price from Schedule B on the reverse side by Durango's 3.0% use tax rate.

LINE 11 LODGER'S TAX: This is an additional tax required to be collected on all room rentals in any establishment for periods of less than thirty (30) days. Enter the amount of room rental for the period and multiply by 2%.

LINE 12 TOTAL TAX DUE: Add Lines 9, 10, and 11.

LINE 13 LATE FLING: Report the penalty assessed for filing after the due date. The penalty is 10% of Line 12. Report the interest which is .75% per month of Line 12. Enter the total of penalty and interest in the appropriate space for Line13.

LINE 14 TOTAL TAX, PENALTY AND INTEREST DUE: Add Line 12 and Line 13.

LINE 15 ADJUSTMENTS FOR PRIOR PERIODS: A City Notice of Sales Tax - Error - Demand for Payment will be sent to any taxpayer who (A) is delinquent, (B) underpaid taxes due, or (C) overpaid taxes due. Attach copy of notice to your return and show underpayments due the City on Line 15(A) and credits due to you on Line 15(B).

LINE 16 TOTAL DUE AND PAYABLE: Make check or money order payable to City of Durango.