Colorado DOR Issues Ruling Clarifying Exempt Status of Bakery Goods from Sales Tax

The Colorado Department of Revenue (DOR) issued private letter ruling regarding sales tax exemptions for items sold by taxpayer’s bakery. DOR held that multi-packs of baked goods ranging from 4 to 12 items, individual boxed baked goods, and catering and bulk orders of baked goods are all exempt from Colorado state sales tax when sold by a bakery without eating facilities, as they are considered food for home consumption. The exemption applies whether the items are purchased in-store, via a mobile app, or website for pickup or third-party delivery. [Col. Dep’t of Revenue, PLR 2004, 08/25/25]

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