A general bill of sale is the workhorse document for any personal property transfer in Colorado that doesn't need state titling — power tools, snowblowers, e-bikes, kayaks, mountain bikes, jewelry, antiques, business equipment, electronics, and more. It establishes that ownership changed hands, on what date, and on what terms. Even though Colorado doesn't require it for most personal property, a written bill of sale prevents "I never sold that" disputes, supports insurance claims, and gives both parties a clean record. For high-value items, notarization adds protection.
A general bill of sale works for furniture, tools, equipment, or any personal property — but only if written correctly. Our step-by-step guide shows exactly what language to include so the document holds up if there is ever a dispute. Read: How to Write a Bill of Sale (Step-by-Step) →
Colorado General Bill of Sale — What You Need to Know
Primary Form
Standard bill of sale
Agency
N/A
Not applicable (general personal property)
Primary ID Field
Serial Number
Sales Tax
Exempt
Title Required
No
A general bill of sale is used for personal property transfers that do not require state titling — furniture, electronics, tools, equipment, jewelry, livestock other than horses subject to brand inspection, collectibles, and similar items. It documents the transaction but does not register ownership with any agency.
Inspection
Not required
Sales Tax Details
Casual private-party sales of used personal property between individuals in Colorado are generally not subject to sales tax. Sales by businesses or anyone making frequent sales (the "casual sale" exemption is for occasional transactions) may be taxable at 2.9% state plus local rates. Check with the Colorado Department of Revenue if you sell frequently or in volume.
Registration
Registration for this vehicle type is handled by None — not the same agency that handles cars in Colorado. Plan for separate filings.
Colorado General Sale — Step-by-Step Checklist
Describe the item precisely: make, model, serial number, color, dimensions, condition, accessories included
For multiple items, attach a numbered itemized list as an addendum
List sale price (or "gift" with $0) and sale date
Both parties' full legal names, addresses, and contact information
State "AS-IS, NO WARRANTY" unless an express warranty is being given
Specify what is NOT included if there's ambiguity (e.g., "battery and charger included; carrying case not included")
Both parties sign and date — keep a signed copy each
Notarize for high-value transactions (over $5,000) or when buyer/seller don't know each other
For business equipment, note any UCC-1 filings and confirm there are no liens
Take date-stamped photos of the item at sale for both parties' records
Common Pitfalls
Vague descriptions like "tools and equipment" — disputes arise about exactly what conveyed
No serial numbers on serialized items (electronics, e-bikes, generators, firearms accessories) — critical if later stolen
Selling "as-is" verbally but writing nothing down — Colorado courts can imply warranties when the writing is silent
Not noting condition — "good condition" means different things to different people; "shows wear consistent with age" is more defensible
Selling encumbered business equipment without checking UCC filings — secured creditors can repossess from the buyer
Crossing into "frequent seller" territory and owing sales tax — Colorado's casual exemption is for genuinely occasional sales
Forgetting that some items have specific Colorado rules: horses (brand inspection), firearms (FFL transfer), OHVs (CPW registration) need their own process beyond a general bill of sale
Skipping notarization on big-ticket items — recovery is much harder without it if the buyer disappears
Pro Tip
A simple general bill of sale prevents most personal-property disputes in Colorado: precise description, clear price, "as-is" language when appropriate, and signatures from both parties. For high-value or stranger-to-stranger deals, add a notary. For anything titled, registered, brand-inspected, or FFL-transferred, use the dedicated Colorado process instead.
Colorado General Bill of Sale — FAQs
Is a general bill of sale legally required in Colorado?
No. Colorado law does not require a written bill of sale for general personal property transfers, but it is strongly recommended. A bill of sale establishes who owned the item before and after the sale, the price, the date, and any "as-is" or warranty terms. It supports insurance claims if the item is later stolen or damaged, helps establish basis for tax purposes, and prevents he-said/she-said disputes. For anything worth more than a few hundred dollars, write it down.
Do I need to notarize a Colorado bill of sale?
Notarization is not required by Colorado law for a general bill of sale, but it adds significant evidentiary weight if the transfer is later challenged. For high-value transactions (jewelry, antiques, business equipment, anything over a few thousand dollars), or when buyer and seller are strangers, notarization is worth the small fee. Most Colorado banks notarize for free for customers, and UPS Stores and many credit unions offer notary services to the public.
Do I owe sales tax on a private-party sale of used personal property?
Generally no. Colorado's casual sale exemption covers occasional private-party transfers of used personal property between individuals. However, if you sell frequently or in volume — for example, regularly flipping items on Facebook Marketplace or Craigslist — the Department of Revenue can classify you as a retailer required to collect 2.9% state plus local sales tax. Selling your old bike or tool kit a few times a year is fine; running a quasi-business out of your garage is not.
What should "as-is" really mean in a Colorado bill of sale?
Stating "AS-IS, WHERE-IS, WITH ALL FAULTS, NO WARRANTY EXPRESS OR IMPLIED" disclaims most warranties under Colorado's Uniform Commercial Code. It does not protect a seller who actively misrepresents material facts (e.g., "this generator runs perfectly" when you know it doesn't) or hides known defects. Buyers should inspect carefully and assume nothing not in writing is part of the deal. Sellers should not promise things verbally that don't end up in the bill of sale — written terms control if a dispute reaches court.
Can I use a general bill of sale for any item in Colorado?
For most personal property, yes. But several categories have their own Colorado-specific processes that go beyond a general bill of sale: vehicles, motorcycles, and motorhomes title at the county clerk; horses require Colorado Brand Board inspection at change of ownership; OHVs (ATVs, UTVs, snowmobiles) register with Colorado Parks and Wildlife; boats with motors title with CPW; firearms must transfer through an FFL with CBI background check and three-day waiting period. Use a general bill of sale for everything else — and use the dedicated process (often with its own bill of sale form) for the categories above.