A Colorado bill of sale is a form used to record the official sale of items sold in the state of Colorado. A Colorado bill of sale is most often used for selling a motor vehicle, boat, or firearm. A bill of sale not only documents the sale but also serves as proof of ownership for the buyer. Both the buyer and seller should keep a copy of any bill of sale for their records.
Types of Bill of Sale
Colorado Bill of Sale Requirements
In Colorado, a bill of sale is only required in certain circumstances. A title transfer should generally suffice when a seller reassigns ownership of a vehicle or vessel to a buyer. A bill of sale becomes necessary when a vehicle is purchased after hours and it needs to be driven prior to registration. It is also necessary when there is no space on the current title for the odometer reading.
There is an official bill of sale provided by the state, but it is usually only available for purchase through a state-approved vendor. The exceptions are the few counties that provide their own bills of sale. You will have to call your county’s local Division of Motor Vehicles (DMV) to find out if your county is one of them. For example, Broomfield County provides a form on its website.
Language Requirements
Bills of sale in Colorado, as well as other DMV documents, are not translated into Spanish or any other language. Also, the state does not provide interpreters; however, you may bring your own. All translated documents must state the following, typed or printed on the same page:
“I, (insert translator name), affirm that the foregoing is a complete and accurate translation from (insert name foreign language) to the English language to the best of my ability. I further affirm that I am fully competent to translate from (insert name of foreign language) into the English language and that I am proficient in both languages.”
Number of Copies
If a bill of sale is needed to complete a vehicle or vessel sales transaction, then you will need one copy to submit to the state, along with a copy for the buyer and a copy for the seller. If a bill of sale is not legally needed, you should only have to make copies for each of the parties to the sale.
Vehicle Bill of Sale Requirements
A vehicle bill of sale does not need to be notarized in Colorado. You can use the official state form, one of the several provided by select counties, or you may draft your own. However, any form you use must provide the following information:
- The names, contact information, and signatures and the buyer and seller
- The vehicle identification number or VIN
- The make, model, and year of the vehicle
- The selling price
- The purchase date and time
After Purchasing a Vehicle
Besides a proper bill of sale, many other documents must be processed and submitted in order to register your vehicle or vessel in Colorado. Here is a detailed list:
Dealership Sales
For buyers:
- Most dealership agents in Colorado will submit your car registration papers for you on your behalf. However, you should confirm this before leaving, as you may have to file the paperwork yourself.
- If your vehicle is new, your paperwork must state that is explicitly, or you will have to complete a VIN verification, or Form DR 2698.
Private Sales
For buyers:
- In certain counties in Colorado, you may need a mandatory smog inspection in order to register your vehicle. Those counties include Boulder, Broomfield, Douglas, and Jefferson. There are also counties in which only certain sections require inspections. Those counties include Adams, Arapahoe, Larimer, and Weld. If you are not sure whether you live in a designated area, it is best to call your local county office.
- You have 60 days to register any vehicle with the DMV. You must go down in-person to your county’s local office with either the current registration certificate or the title, proof of identification, proof of passing your emission test (if applicable), and payment for all taxes and registration fees. Registrations in Colorado are valid for one year.
- Your registration fees are determined by three separate factors, which are the vehicle’s weight, taxable value, and the date it was purchased. Many counties have an estimator on their websites to determine vehicle registration fees. You must pay sales tax which is based on the net price that you paid for the vehicle. You will also have to pay an ownership tax, which is a personal property tax that is based on the value of the vehicle when it was brand new. This amount does not decrease throughout the life of the vehicle.
- If you have recently moved to Colorado, you have 90 days to register your vehicle and obtain proper Colorado plates. If you do not register your vehicle within 90 days, you will be subject to paying a late fee. You must complete a VIN verification, or Form DR 2698 if your vehicle is used and was purchased in another state. The verification must be performed by a member of law enforcement, a licensed Colorado emissions testing agent, or a licensed car dealer.
- If you are active military from out-of-state and stationed in Colorado, you may keep your current registration in your home state, or you may register your vehicle in Colorado. However, if you register your vehicle in the state, you will be exempt from paying the state’s own tax. To claim the exemption, you must visit your county DMV office with a copy of your military orders stationing you in Colorado, a current leave and earnings statement, and a Nonresidence and Military Service Exemption from Specific Ownership Tax Affidavit, or Form DR 2667.
Boat Bill of Sale Requirements
Colorado Parks and Wildlife (CPW) provides a bill of sale on its website that can be used for vessels, or you can draft your own boat bill of sale. Regardless of what you choose, the document must contain the following:
- The names, contact information, and signatures and the buyer and seller
- The hull identification number or HIN
- The make, model, and year the vessel was built
- The selling price
- The purchase date and time
Many of the Colorado bills of sale from various counties carry a penalty of perjury. For example, Broomfield County’s bill of sale states, “…under the penalty of perjury in the second degree, we swear and affirm that the above information is true and correct to the best of our knowledge.” Perjury in the second degree in Colorado is defined, in accordance with Colorado Revised Statutes, Section 18-8-503, as “[making] a materially false statement with an intent to mislead a public servant in the performance of his duty, which [is not believed] to be true, under an oath required or authorized by law,” and is punishable by 6 to 18 months in a county jail, or a fine ranging from $500 to $5,000. It is considered a Class 1 misdemeanor.
After Purchasing a Vessel
Private Sales
For buyers:
- You are required to register the following vessels with the CPW: all sail-powered boats and motor-powered boats. Exceptions include canoes and kayaks and boats that are registered in other states that are using Colorado’s waters for less than 60 days.
- You may use a bill of sale as a temporary registration for your vessel until you are able to permanently register it with the CPW. You can only do this for a period of 30 days.
- You have the option of either mailing your registration documents to the Parks and Wildlife Registration Unit, or registering your vessel in person. You will need a Registration Application, proof of ownership documents, such as a bill of sale or previous registration, or a Title Court-issued document that concerns vessel ownership. Your registration will be valid from January 1st through December 31st, no matter when you registered your vessel.
- You will be given a Colorado registration number, but no decals. You can attach the number or paint it on your vessel on each side of the bow. It should be in a contrasting tone so it is visible at all times.
- Vessel registration fees are dependent on a vessel’s length. They are as follows:
- Less than 20 feet: $35.25
- 20 feet to 30 feet: $45.25
- 30 feet and longer: $75.25
- If you lose or damage your registration card, you will need to obtain a replacement from the CPW. You will have to mail the Park and Wildlife Registration Unit an explanation as to why you need a replacement, as well as the $5 fee.
Gun Bill of Sale Requirements
In Colorado, you are not required to apply for a firearm permit or register your handgun or shotgun. As such, you are not required to provide the state with a bill of sale for its records. However, it is still a good idea to provide the buyer with a firearm bill of sale and for the buyer to keep a copy for his or her records in case it is ever needed. You may draft your own, or use one of many samples found online. Most bills of sale for firearms should contain the following information:
- The buyer’s and seller’s names, contact information, and signatures
- The make, model, caliber, and serial number
- The purchase price
- The sales date
Free Colorado Bill of Sale Templates
