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. Beginning July 1, 2022, Colorado cities cannot charge out of state businesses for local licenses, and beginning July 1, 2023, cities will be prohibited from requiring the licenses. Instead, the state tax department will be responsible for collecting information from remote sellers and providing that information to local jurisdictions. Democratic Gov. Jared Polis signed S.B.32 into law, with hopes of simplifying and streamlining Colorado’s sales and use tax collection processes and provide less of a burden on out of state businesses post-Wayfair. (Colorado Senate Bill 22-032, effective July 1, 2022)

Posted on May 17, 2022