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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 Sales Tax Rates
State Rate

2.900% Remote sellers are required to collect sales tax if they exceed Colorado’s economic nexus threshold.
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. Remote sellers are required to collect sales tax if they exceed Colorado’s economic nexus threshold.
Remote Seller Nexus Rules
CLICK-THROUGH NEXUS

7/1/2014 – repealed effective 6/1/2019
AFFILIATE NEXUS

7/1/2014 – repealed effective 6/1/2019
REPORTING REQUIREMENTS

7/1/2017
ECONOMIC NEXUS

December 1, 2018 with grace period through May 31, 2019
MARKETPLACE NEXUS

10/1/2019
Sales Tax Amnesty
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.

Administration Information
Streamlined Sales Tax Status

Non-Participating
NUMBER OF TAXING AUTHORITIES

328 Sales Tax Jurisdictions
HOME RULE AUTHORITIES

Yes – combination; state administers most counties, some cities and all special purpose districts
Sales Tax Sourcing (Intrastate)

Destination
Sales Tax Return Due Date

The 20th of the month following the reporting period
State Links
State Tax Web Page

Colorado Department of Revenue
Rate Look-Up Page

Colorado Sales Tax Rate Look-Up
Registration Link

Register for Colorado Sales Tax
History & Fun Facts
HISTORY

  • Colorado enacted its sales tax in 1935 and adopted its use tax in 1936.
  • Colorado is notoriously one of the most difficult states for managing sales tax. It has both home rule and state-collected sales tax jurisdictions. Home-rule jurisdictions can establish their own tax laws and enforce them via audit. In 2017, the Colorado Legislature developed a Colorado Sales and Use Tax Simplification Task Force to address the complexity of the state’s sales tax system.
  • Effective July 1,2022 a retail delivery fee of $0.27 will apply to all deliveries to a Colorado location, by motor vehicle, with at least one item subject to state sales and use tax. The fee is remitted and reported on the new form DR 1786 which is due monthly on or before the 20th of each reporting period.
FUN FACTS
  • Although Colorado has a food sales tax exemption, liquor-filled candy does not qualify for it.
  • Colorado makes a distinction between food for home consumption and prepared food for sales tax exemption purposes. The state highlights this distinction in their very specific approach to packaged salads. Bagged salads that do not include dressing or utensils qualify as food for home consumption. Bagged salads that include dressing and packaged salads in the shape of a bowl that contain dressing and utensils are prepared foods subject to tax.
  • In Colorado non-essential packing is subject to a 2.9% tax. Be careful with your morning to-go coffee- because the lid is not considered essential!

Federal Government Introduces New Remote Seller Bill

The federal Marketplace Fairness Act of 2013 was introduced in the House of Representatives and the Senate on February 14, 2013.

Colorado Strikes Down Remote-Seller Reporting Requirements

The U.S. District Court, District of Colorado has issued a permanent injunction against the enforcement of a statute and regulations that impose notice and reporting requirements pertaining to use tax on out-of-state sellers, declaring them unconstitutional.

Colorado Approves Tax Amnesty Program

Colorado Governor John Hickenlooper has signed legislation approving a tax amnesty program that will run from October 1, 2011 to November 15, 2011.

Colorado Issues Permanent Regulation on Sales and Use Taxation of Software

The Colorado Department of Revenue has issued a permanent regulation on the sales and use taxation of software, with guidance on the de minimus rule and maintenance agreements.

Colorado Bills Introduced to Repeal Amazon Law Indefinitely Postponed

Two pieces of Colorado sales and use tax legislation to repeal the \”Amazon law\” have been indefinitely postponed in committee.

Federal Court Issues Injunction Prohibiting Colorado Remote-Seller Reporting Requirements

A federal district court has issued a preliminary injunction prohibiting Colorado from enforcing remote-seller reporting requirements on out-of-state sellers not obligated to collect Colorado sales tax.

Colorado Nexus Presumption Bill Enacted

Governor Bill Ritter signed a bill, effective March 1, 2010, that imposes a sales tax collection responsibility on out-of-state remote retailers that do not collect Colorado sales tax.

Colorado Issues Emergency Regulation Explaining Taxation of Multiple Points of Use Software

In response to Colorado’s recent elimination of the exemption for electronically-delivered software, an emergency regulation has been issued that explains, among other things, the taxation of standardized software that is concurrently available for use in multiple jurisdictions. If the purchaser…

Colorado State Law Regarding Tax Refund Appeals Superseded Local Requirements

The Colorado Supreme Court has decided that the Executive Director of the Colorado Department of Revenue had jurisdiction to hear a taxpayer\’s appeal of two towns\’ denial of use tax refund requests.

Colorado Vendor’s Service Fee Temporarily Eliminated

The Colorado vendor\’s service fee, which is a portion of the sales tax collected that is retained by the vendor to cover expenses relating to collecting and remitting the tax, has been suspended.

Connecticut Provides Guidance on Proper Use of Resale Certificates

The Connecticut Department of Revenue Services has issued an informational publication concerning the proper use of resale certificates.

Kansas Reduces the Discount Rate for Colorado Retailers to Zero

Kansas announced that the discount rate extended to Colorado retailers for collecting and remitting Kansas compensating use tax will be reduced to 0% beginning with returns filed on or after July 1, 2009.

Temporary Elimination of Vendor Allowance in Colorado

Colorado legislation temporarily eliminates the ability of any vendor to retain any amount of state sales tax revenues to compensate for the vendor’s expenses incurred to collect and remit from July 1, 2009 through June 30, 2010. Vendors, however, will…

City of Colorado Springs Enacts Tax Amnesty Program

The City of Colorado Springs is offering a Tax Amnesty Program that provides an opportunity for businesses within the City to voluntarily pay any past due sales, use, lodgers, auto rental, bicycle and movie admission tax liabilities without penalties and with reduced interest.

Colorado Expansion of Manufacturing Equipment Exemption Discussed

Effective May 23, 2007, the exemption on manufacturing equipment was expanded to include machinery and machine tools, or parts for such machinery, used in the production of electricity from a renewable energy source, including, but not limited to, wind. This…

Colorado Exemption for Cleanroom Machinery Enacted

All sales, storage, and use of machinery, in excess of $500, that comprises a cleanroom used to produce tangible property are exempt from tax.

New Colorado Guidelines For Taxable Software

Effective May 30, 2006, the Colorado Department of Revenue adopted a new computer software regulation which provides that sales and use tax only applies to computer software purchases meeting the following conditions: prepackaged for repeated sale or license, governed by…

Colorado Mandatory Delivery Charges are Taxable

The Colorado Department of Revenue concluded that Colorado sales tax must be paid on mandatory delivery charges levied on mail order purchases from companies doing business in Colorado.

Colorado vendors can rely on state provided database of jurisdictions and tax rates.

Colorado vendors may now rely solely on a database of jurisdictions and tax rates certified and provided by the Department of Revenue for Colorado transactions.