Can retailers include sales tax in the price of the item sold?

Only in very few cases is it OK to include sales tax in the price charged to customers. Although governed by the state, this question comes up frequently at the City. We are posting this information for the education of local vendors in an effort to help them be in compliance! The Department of Revenue’s website has more information.

This is the “official” answer from the state:

Regulation (39-) 26-108. Every retailer or vendor, except one selling malt, vinous or spirituous liquors by the drink and electing to include the tax in the selling price, and except vending machine operators, shall collect sales tax on all taxable sales as an item separate and distinct from the selling price. It is a misdemeanor for a vendor, with the above exceptions, to hold out or state, directly or indirectly, that the tax or any part thereof will be assumed, absorbed or refunded by the vendor or that the tax will not be added to the purchase price.

http://www.colorado.gov/cs/Satellite?c=Page&cid=1200408333752&pagename=Revenue%2FREVXLayout

If you copy and paste the link above into your browser, you will find a list of questions and answers about sales tax. The second item under the heading “Absorption of Tax” is the Q&A about this matter.
We hope this helps in relaying to the vendors in Salida the proper way to account for, collect and remit the sales taxes.