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7/1/2014 – repealed effective 6/1/2019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7/1/2014 – repealed effective 6/1/2019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

Grace period through 5/31/2019 – notice & reporting still required
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
Exemption Information
RESALE CERTIFICATE
TYPES OF EXEMPTIONS

Product types of exemptions: food, machinery, farm equipment, sales of low-emitting vehicles, school related sales, cigarettes, renewable energy components, space flight

 

Entity types of exemptions: United States government, State of Colorado, its departments and institutions, and its political subdivisions (county and local governments, school districts and special districts) in their governmental capacities, religious, charitable, scientific, testing for public safety, literary or educational; entities that foster national or international amateur sports competition, as long as no part of its activities involve providing athletic facilities or equipment; entities involved with the prevention of cruelty to children or animals. Note: the exemption does not apply to locally-collected sales tax levied by home-rule cities. Home-rule jurisdictions make their own tax regulations and they must be contacted directly for information.

 

Colorado Exemption Certificate Forms
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!

Wayfair Sues Colorado City and Department of Revenue Over Undue Burdens on Out of State Taxpayers

Wayfair LLC, the defendant in the landmark 2018 ruling that created the standards for economic nexus, has filed suit in Colorado to challenge the nexus standards of the state and its home rule cities, arguing that the state\’s tax regime violates the US constitution and the standards laid out in the 2018 case.

Colorado Won’t Require Local Licenses from Remote Sellers

Colorado will no longer require remote sellers, “retailers without physical presence or with only incidental physical presence,” to have local licenses in the state’s approximately 70 home-rule cities.

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.

How Home Rule States Have Responded to Wayfair

Let’s take a look at three of the primary home rule states that also have a state-wide sales tax—Alabama, Colorado, and Louisiana—to understand steps taken what remote out-of-state sellers can expect.

Economic Nexus State by State Chart

Key information such as effective dates, thresholds, and includable sales for out-of-state sellers making sales into states that have enacted economic nexus legislation both before and after the South Dakota v. Wayfair Supreme Court decision.

Three Years of South Dakota v. Wayfair: Local Tax Issues

Learn why managing local taxes is such a large challenge for taxpayers post-Wayfair and about local efforts to simplify compliance. This is part 4 of our 5 part series on three years of the Wayfair decision.

Colorado General Assembly Has Extended the Deadline for Destination Sourcing for Small Businesses

The General Assembly of Colorado has enacted SB21-282, which exempts small businesses who make $100,000 in retail sales, from using destination sourcing requirements.

Sales Tax Nuances of Trade Show Attendance

Trade show attendance in another state can create physical nexus and trigger sales tax obligations. Learn key nuances of trade show rules across the states.

How the West Has Responded to Wayfair

A whirlwind of sales tax changes have swept across the Western region of the U.S. following the Wayfair decision.

Remote Seller of Exempt Products Has Economic Nexus in Colorado

Colorado has issued a private letter ruling stating that a remote seller that sells exempt products into the state has economic nexus.

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.

Colorado Codifies Economic Nexus Rule and Enacts Marketplace Nexus Legislation

Colorado has enacted legislation that codifies the state’s economic nexus ruling, effective June 1, 2019, and creates new requirements for marketplace facilitators, effective October 1, 2019.

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.

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.

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.

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.

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.

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.

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.

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.

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.