Effective April 14, 2026, Colorado has amended a rule related to sales tax return filing frequency in order to conform to legislative changes. The amended rule increases the amount of monthly tax collected above which a retailer is required to file sales tax returns on a monthly filing schedule.
If a retailer’s average monthly Colorado sales tax collection is, or is estimated to be, $1,100 or more, the retailer shall file returns and remit tax on a monthly schedule. If a retailer’s average monthly Colorado sales tax collection is, or is estimated to be, less than $1,100, but more than $50, the retailer may file returns and remit tax on a quarterly schedule. If a retailer’s average monthly Colorado sales tax collection is, or is estimated to be, $50 or less, the retailer may file returns and remit tax on an annual schedule. The Department of Revenue will annually review retailers’ average monthly sales that are filing on a less than monthly basis to determine if they should be filing more frequently. They will adjust the filing frequency and notify retailers of the change in writing. Filing frequencies will not be decreased, but a change can be requested by the retailer.
Per the rule, the average monthly Colorado sales tax collection includes the total state and state-administered local sales tax for which the retailer is, or is estimated to be, liable, on average, over a twelve-month period.
Note that this rule does not apply to sales tax returns with respect to special sales events. (Rule 39-26-109, Colorado Department of Revenue, effective April 14, 2026)