CITY OF DURANGO
SPECIFIC INSTRUCTIONS FOR 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.
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 puchase 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.
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