The Arvada Municipal Code imposes a sales tax on the price paid for items sold at retail in the City of Arvada (COA). If sales and use tax was not paid to the COA or another municipality, Arvada use tax is due. The taxable price is the amount of money received or due, including shipping charges.
Tax-exempt organizations must pay sales tax on anything used for fund raising purposes. Anything not used in their regular charitable activities is taxable. Fundraising is not considered a charitable activity. As such, supplies purchased for fund raising activities are not tax exempt.
Bingo supplies and equipment are not used by the tax-exempt organization, they are used by the bingo patrons. However, this is not considered to be a retail sale and is not tax-free under the resale exemption. Bingo is a service, and bingo operators are the consumers of their supplies. Organizations that operate bingo games in Arvada must pay taxes on their supplies.
The Colorado Department of Revenue has exempted the sales of bingo “equipment” effective July 1, 2001. This exemption does not extend to the City of Arvada. Bingo equipment that is purchased or rented in Arvada is taxable.
*This information is a summary in layman's terms of the relevant Arvada tax law for this subject, industry, or business segment. It is not intended for legal purposes to be substituted for the full text of the Arvada tax code. However, the tax guide shall be used in conjunction with the Arvada tax code (chapter 98) in determining tax liability.