Colorado: Sales Tax Handbook

Are Optional Maintenance Contracts subject to sales tax?

While Colorado's sales tax generally applies to most transactions, certain items have special treatment in many states when it comes to sales taxes. This page describes the taxability of optional maintenance contracts in Colorado, including parts purchased for use in performing service under optional maintenance contracts. To learn more, see a full list of taxable and tax-exempt items in Colorado.

General Optional Maintenance Contracts EXEMPT In the state of Colorado, the agreement is required to be purchased separately. Parts Purchased for Use in Performing Service Under Optional Maintenance Contracts TAXABLE

Sales of parts purchased for use in performing service under optional maintenance contracts are subject to sales tax in Colorado.

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