February 23, 2010
The CDA continues to act on behalf of Centennial dentists regarding the issue of charging sales tax on items sold in dental offices within the City of Centennial.
The CDA attorney suggests that practices located within the City of Centennial that have a current Centennial Sales Tax License file an annual return, even if the practice does not have retail sales to report for the period. Items such as electric toothbrushes, toothpaste and mouthwashes should be reported and the sales tax paid. If a dentist sells prescription drugs or whitening products, the dentist should list the sale of these products separately, stating that the dentist believes these products to be exempt, pursuant to Section 4-1-260(v) of Centennial Sales Tax Ordinance 2008-O-29. The filing of this return will preserve the dentist’s right to object to paying sales tax and avoid any potential penalty for failure to file or report sales.
The City of Centennial has forwarded our question concerning sales tax on the distribution of whitening materials to the State of Colorado Department of Revenue to determine if the city’s position is consistent with that taken by the state. A ruling by the state is expected within the next two weeks. A final determination will be sent to CDA members practicing in Centennial upon receipt of the ruling from the City of Centennial.
If you have questions concerning the filing of these returns, please contact Pam Brockhaus at the CDA at 303-740-6900, 800-343-3010 or pam@cdaonline.org.
This information is general in nature and not intended to be a specific review of all requirements. Please consult with your legal or tax counsel to ensure compliance with all requirements specific to your practice.
