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Do I have to collect local sales tax if I have nexus in Colorado?

If I am a Remote Seller and have Economic Nexus in Colorado State, does that mean I have to collect for all local jurisdictions too?
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Alan Smith

If you have Economic Nexus or a physical presence nexus such as created by using Fulfillment By Amazon (FBA) then, “Yes” effective December 1, 2018, you will have to collect and remit all applicable Colorado State-collected local jurisdictions’ sales tax. Colorado adopted Emergency Rules based upon Wayfair and also adopted Emergency Rules regarding Sourcing.

Home-rule cities/jurisdictions that are self-collecting do not have the Colorado State Department of Revenue administer their sales tax and thus are not included in the State’s Economic Nexus rules. Self-collecting home-rule jurisdictions are discussing Wayfair and the State’s changes as they plan how to adopt their own Economic Nexus laws.


See my 9/20/18 and 9/28/18 Blogs on the issues: www.salestaxcolorado.com/category/uncategorized

Handling sales and use tax properly in Colorado was already difficult. Now the changes mean more and different complications but perhaps some improvements too.

Leave a Comment 132 weeks ago

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Alan Smith
As of June 1st, 2019, the answer is "Yes" for all Colorado State-collected local jurisdictions. As of June 2020, the answer regarding self-collecting home-rule cities is "Yes". June is earliest the effective date for some of the 71 home-rule municipalities such as Golden that began adopting and implementing the Colorado Municipal League Model Ordinances for Economic Nexus and Marketplace Facilitators.
Leave a Comment 29 weeks ago

 

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