1359564548_Silent%20Auction%20Guidelines

LTAC General Guidelines for Silent Auctions 1. The client holding the silent auction event will be responsible for collection and remittance of the 1.25% PIF and the 6.8125% sales tax applicable at the LTAC. The PIF is a fee, therefore tax is charged upon the final purchase price of the tangible good plus the PIF fee. For information regarding the PIF and sales tax please contact: RidgeGate Public Improvement Fee (PIF) – Denise Denslow (303) 779-4525 State of Colorado Sales Tax (State, County, RTD, SCFD) – (800) 659-3656 City of Lone Tree Sales Tax – (303) 708-1818 2. Exempt organizations are not exempt from collection of the PIF and sales tax unless they meet the following condition: Lone Tree Municipal Code: Sec. 4-3-210. Sales tax (Exemptions) There shall be exempt from the sales tax levied under the provisions of this Article the following: (12) Subject to the provisions of Paragraph (2) above, occasional sales by a charitable organization as provided in Section 39-26-718 C.R.S. Colorado Revised Statutes: 39-26-718. Charitable organizations - association or organization of parents and teachers of public school students (1) The following shall be exempt from taxation under the provisions of part 1 of this article: (a) All sales made to charitable organizations, in the conduct of their regular charitable functions and activities; except that any veterans' organization that qualifies as a charitable organization pursuant to section 39-26-102 (2.5) shall be exempt from taxation under the provisions of part 1 of this article only for the purpose of sponsoring a special event, meeting, or other function in the state of Colorado that is not part of the organization's regular activities in the state; (b) (I) Effective July 1, 1995, all occasional sales by a charitable organization.

(II) For purposes of this paragraph (b), "occasional sales" means retail sales of tangible personal property, including concessions, for fund-raising purposes if: (A) The sale of tangible personal property or concessions by the charitable organization takes place no more than twelve days, whether consecutive or not, during any one calendar year; (B) The funds raised by the charitable organization through these sales are retained by the organization to be used in the course of the organization's charitable service; and (C) The funds raised by the charitable organization through these sales do not exceed twenty-five thousand dollars during any one calendar year. (c) On or after September 1, 2008, a sale by an association or organization of parents and teachers of public school students that is a charitable organization, if the association or organization uses the funds raised through the sale for the benefit of a public school or an organized public school activity or to pay the reasonable expenses of the association or organization.

It is key to note that the obligation to collect sales taxes is different from the exemption from paying sales taxes.

3. State exempt organizations have to provide their Colorado exemption certificate, which includes their exempt “98” number. This number is a seven digit number, 98-XXXXX. The City recognizes and accepts these exemptions.

4. Exempt or Tax-Free Purchases during the Silent Auction: No sale should be considered tax-free unless the purchaser is exempt from paying sales tax or has a State sales tax license. Exemption from sales tax would require a 98-XXXXX Colorado exemption certificate. If a purchaser is purchasing to resell this may also be considered a tax-free sale if the purchaser provides a current Colorado sales tax license (which contains a 12 digit number beginning with 0, such as 02355555-0000).

5. Please note that if there are any questions regarding more specifics related to tax collection please call the jurisdictional contacts above.