The Colorado Department of Revenue and its counterpart at the city and county level announced the investigation yesterday.
At issue is whether the mission should have paid Denver's 61/4 per cent sales tax in purchasing its motorcycle and 56 cars and trucks.
Tax officials said the exemption does not apply to individuals.
But a Divine Light spokesman said all residents, who live in 17 mission houses, spend all their time in religious pursuits and have no private or individual selves. Not even their underwear is their own, he said.