Colorado – Pet Medicine Exempt from Sales Tax

SALT Report 3830 – “When Loveland became a Home Rule city in the late 1990s, its sales tax base conformed to the tax base established by the State of Colorado. At that time, Colorado — and Loveland — collected sales tax on prescription veterinary drugs for ‘pet animals.’ Prescription drugs for livestock were, and remain, exempt from sales tax,” the letter stated.

However, in the early 2000s, the letter continued, a city staff member told veterinarians that pet medications would be exempt from the tax.

“This was the City’s error. It is likely that the basis for this message was tied to a State policy change, and a decision by another city in the region, to exempt these medications,” it stated.

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