Colorado Sales Tax

On this page you will find handy sales and use tax information about Colorado.

How to use this page:

We’ve pulled in the information from all our Charts for a consolidated view by state.  Here you can see the sales tax rates and if the state has remote seller nexus rules. You can also see any sales tax holidays or amnesty programs that may exist, though these do not apply to all states.

Below the chart you can find any News & Tip item we have published that relates to Colorado that you can filter by topic. This will help you get informed on current and past legislation that has passed in the state.

State Rate

2.900%

Range of Local Rates

0% – 8.3% Some local jurisdictions do not impose a sales tax.

Local Rates Apply to Use Tax

Yes/No Some of the cities and counties do apply use tax.

Status

Inactive

Amnesty Filing Dates

October 1, 2011 - November 15, 2011

Go to Colorado Amnesty Page
AMNESTY INCLUSION PERIODS

The overdue tax must have been due for returns or reports that needed to have been filed before December 31, 2010, including returns which the Department of Revenue granted an extension for.

TAX TYPES AND CONDITIONS

Corporate and personal income taxes, sales and use taxes and county or municipal sales taxes collected by the Dept. of Revenue, gasoline and special fuel taxes, cigarette and tobacco product taxes, severance taxes, certain local improvement district sales taxes, sales and use taxes imposed by the Regional Transportation District, Denver Metropolitan Scientific and Cultural Facilities District, Metropolitan Football Stadium, and regional transportation authorities, and local marketing and promotion taxes and county lodging and rental taxes collected by the Dept. of Revenue.

AMNESTY BENEFITS

Civil and criminal penalties, fines and 50% of interest waived on overdue tax.

Status

Inactive

Amnesty Filing Dates

October 1, 2011 to December 30, 2011

Go to City of Denver Amnesty Page
AMNESTY INCLUSION PERIODS

Applies to taxes which were due on or before June 30, 2011.

TAX TYPES AND CONDITIONS

City and County of Denver sales tax, retailer’s use tax, consumer’s use tax and occupational privilege tax.

AMNESTY BENEFITS

Waiver of penalties and half of interest due. Taxpayers using amnesty program will avoid criminal prosecution.

South Dakota v. Wayfair Analysis & Predictions: Sales Tax Experts Weigh-In

Sales tax experts lend their insight into and predictions for one of the most important U.S. Supreme Court decisions regarding sales tax in decades, South Dakota v. Wayfair.

State Notices & Resources for Remote Sellers

Use this state by state guide to find each state\’s initial guidance on how to proceed post-Wayfair, state resources such as FAQs, and any state activity such as going through a legislative process that impacts remote sellers.

Remote Seller Resources

Comprehensive list of resources for remote sellers following the South Dakota v. Wayfair Supreme Court decision – including state notices, videos, articles, training opportunities, and more.

House Introduces Online Sales Simplicity and Small Business Relief Act of 2018

On September 13, 2018, Rep. Jim Sensenbrenner (R-WI) and additional U.S. House members introduced the Online Sales Simplicity and Small Business Relief Act of 2018.

Colorado to Require Remote Seller Sales Tax Collection

Effective December 1, 2018, the Colorado Department of Revenue will require out-of-state retailers who exceed the state’s economic threshold to collect and remit retailer’s use tax.

U.S. Supreme Court Issues Decision In South Dakota v. Wayfair

On June 21, 2018, the U.S. Supreme Court issued its decision in the South Dakota v. Wayfair case, ruling in favor of South Dakota and overturning Quill’s physical presence rule.

Colorado Department of Revenue Rescinds All Prior Revenue Bulletins

The Colorado Department of Revenue has rescinded all previously published bulletins and policy positions as of February 2018.

Multistate Tax Commission Updates Its Uniform Sales & Use Tax Exemption Certificate

The Multistate Tax Commission (MTC) revised its Multijurisdictional Uniform Sales & Use Tax Exemption/Resale Certificate on January 22, 2018 to reflect two state changes.

Colorado Issues Guidance on Reporting Requirements for Certain Non-Collecting Retailers

The Colorado Department of Revenue has issued a general information letter providing guidance on use tax notice and reporting requirements for certain types of non-collecting retailers.

Colorado Announces Rounding Change for Sales Tax Reporting

Beginning with sales tax returns filed in February 2018 for all sales after January 1, 2018, all Colorado sales and use taxes must reported and paid to the penny.

Remote Seller Compliance Deadlines Approaching for Multiple States

Remote seller compliance deadlines are approaching for a number of states with deadlines of February 28 or March 1.

Record Number of Sellers Participate in 2017 MTC Amnesty Program

The volume of applicants for the 2017 online marketplace seller tax amnesty program overwhelmed the Multistate Tax Commission.

Colorado Use Tax Notice and Reporting Requirements Become Effective July 1, 2017

The Direct Marketing Association reached a settlement agreement with the Colorado Department Revenue regarding its lawsuit over the state’s use tax notice and reporting requirements.

Renewal Required for All Colorado Sales Tax Licenses by December 31, 2017

All Colorado sales tax licenses are set to expire on December 31, 2017. Renewed licenses, which are required for each physical location, will be valid for a two-year period beginning January 1, 2018.

Web Resource for Determining Sales and Use Tax Rates in Colorado

The Colorado Department of Revenue has a Sales and Use Tax Lookup page to help companies accurately determine sales and use tax rates using a variety of tools and charts.

Multistate Tax Commission Announces Tax Amnesty Program for Online Sellers

The MTC organized a tax amnesty program for online sellers, running from August 17 to November 1, 2017. The voluntary disclosure program allowed sellers to start remitting sales tax on future sales without penalty or liability for unpaid, prior accumulated sales tax in 25 participating states.

No Regulation Without Representation Act of 2017 Introduced

Under the proposed House bill, a state may tax or regulate a person’s activity in interstate commerce only when the person is physically present in the state during the period in which the tax or regulation is imposed.

Colorado Issues Guidance on Advance Payments for Vehicle Rentals

The Colorado Department of Revenue indicated that vehicle and hotel occupancy rentals are similar in nature and therefore, several occupancy provisions seem appropriate to apply to the taxability of advance payments on vehicle rentals.

Congress Introduces Marketplace Fairness Act of 2017 and Remote Transactions Parity Act of 2017

Introduced on April 27, 2017, the Marketplace Fairness Act of 2017, if enacted, would authorize states meeting certain requirements to require remote sellers that do not meet a small seller exception to collect their state and local sales and use taxes.

Colorado Updates Publication on Sales and Use Tax Exemption for Residential Energy Usage

Colorado updated its publication regarding the state’s sales and use tax exemption on residential energy usage, stating the exemption applies to all purchases of propane and wood pellets used to heat a home or prepare food.

Payment of Sales Tax by Marketplace Provider Relieved Third-Party Sellers in Colorado

The Colorado Department of Revenue released a general information letter stating that a marketplace provider’s payment of sales tax on sales by third-party retailers relieves the obligation of the third-party retailers to collect and remit sales tax.

Jurisdictions in California, Colorado and Illinois Approve Soda Taxes

On November 8, 2016, the San Francisco, Oakland, and Albany jurisdictions in California and the Boulder jurisdiction in Colorado approved “soda taxes” through ballot measure.

Online Sales Simplification Act of 2016 Discussion Draft is Introduced

The proposed legislation would implement a “hybrid origin” approach for remote sales. States could impose sales tax on remote sales if the origin state participates in a clearinghouse.

No Regulation Without Representation Act of 2016 Introduced

Taking the opposite approach of the Marketplace Fairness Act and Remote Transactions Parity Act, the proposed bill would limit the ability of states to require remote sellers to collect use tax. However, the bill failed to pass.