If Boulder sales tax was not collected, Boulder use tax must be remitted. The purchase of the software is a separate transaction and, therefore, taxable at the sales price. The same software company sells a software package to a customer on a conditional sales contract. The customer has a 90 day trial period prior to being charged for the software. The customer accepts the software and the sale is complete.
Sales tax is charged on the purchase price only.
No use tax is due for the 90 day trial period. A retail home fitness store sells a treadmill on a conditional sales contract. The store has a 30 day return policy. The store later sells this treadmill as used equipment at a discounted price. Sales tax needs to be charged on the sales price and use tax needs to be remitted to the City of Boulder on the price difference between the original full sales price and the discounted amount.