Colorado State Sales Tax – A Quick Guide for Businesses

The State Spotlight Series – CO

Colorado State Snowboarding

Colorado State Sales Tax Rate: 2.9%
For local rates, Colorado publishes a Colorado sales/use tax rate guide. This document is updated January 1 and July 1 every year.

Want to talk to a person? Call 303-238-7378

Economic Nexus?

Yes. Sellers be aware. December 1, 2018, Colorado’s economic nexus law went into effect. Though they are providing a grace period through May 31, 2019. Their goal is to give sellers plenty of time to make the required system changes

Colorado State Sales Tax Due Dates

Colorado State Sales Tax Monthly due date

Though the Wayfair decision complicated taxes for a lot of eCommerce sellers, Colorado’s tax due dates are very straight forward. Everything is due on the twentieth. Monthly remittance is due on the 20th of every month. Quarterly remittance is due on the 20th in April, July, October, and January. For sellers that bring in less than $300.00 in taxes, Colorado offers a yearly due date of January 20, of the following year.

State Sales Tax Holiday?

Unfortunately, no holiday for Colorado. However, if anything changes we will be sure to let you know.

Amazon Fulfillment Centers?

Yes.
Colorado currently has several fulfillment centers, all close to Denver. eCommerce sellers, be sure to track your inventory, we can also do it for you with our automatic nexus detection. Amazon storing your products in their warehouses can trigger ‘presence’ and sometimes your product will move warehouses without notice.

Weirdest Tax Laws

If you’ve ever gone to a restaurant and received more than you can eat, you may feel that your to-go box is an essential item. (I don’t know about you, but I don’t want to carry leftover spaghetti home in my hands.) Nevertheless, Colorado sees this as a non-essential item and adds a 2.9% tax onto the cost. Napkins, straws and plastic utensils also made the list.

During the first stages of the law, there was some controversy around taxing such frequently used items. However, it has been in effect since 2010 and doesn’t look like its going anywhere anytime soon.

Helpful Links:

Colorado Department of Revenue Tax Due Dates

Free Colorado Tax Education Classes and Documents 

Department of Revenue Taxation How-To Videos

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Please note: this blog is for informational purposes and should not to be considered, or used in place of, professional advice for your specific situation.

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