Sales/Use/Indirect:
Colorado: Remote Seller’s Food Products Sold for Human Consumption Deemed Exempt But Local Tax May Apply
Private Letter Ruling PLR-23-003, Colo. Dept. of Rev. (6/14/23). In a recently posted private letter ruling, the Colorado Department of Revenue held that based on the provided facts, a remote seller of food products that are pre-cooked, are packaged with an attached “FDA-approved food label,” are shipped to the company’s customers by a third-party, and all require further preparation to be consumed as intended, is selling “food for home consumption” rather than prepared food or food marketed for immediate consumption and thus the food products are exempt from Colorado sales and use tax under state law. However, because Colorado cities, towns, and counties are permitted to deviate from the state sales tax base with respect to certain exemptions, including Colorado’s “food for home consumption” exemption, the remote seller will need to determine whether Colorado-administered local governments have adopted this exemption in calculating any Colorado local tax due. Please contact us with any questions.
30 Rockefeller Plaza New York, NY 10112-0015 United States
About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities (collectively, the “Deloitte organization”). DTTL (also referred to as “Deloitte Global”) and each of its member firms and related entities are legally separate and independent entities, which cannot obligate or bind each other in respect of third parties. DTTL and each DTTL member firm and related entity is liable only for its own acts and omissions, and not those of each other. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more.
Deloitte provides industry-leading audit and assurance, tax and legal, consulting, financial advisory, and risk advisory services to nearly 90% of the Fortune Global 500® and thousands of private companies. Our professionals deliver measurable and lasting results that help reinforce public trust in capital markets, enable clients to transform and thrive, and lead the way toward a stronger economy, a more equitable society and a sustainable world. Building on its 175-plus year history, Deloitte spans more than 150 countries and territories. Learn how Deloitte’s approximately 415,000 peopleworldwide make an impact that matters at www.deloitte.com.
