Adopted Emergency Rules for Sales Tax Collection in Colorado
Colorado Adopts One of the Most
Complicated Sales Tax Collection Policies
in the Nation
On December 1, 2018, a new set of sales/use tax
collection protocols (the so-called Adopted Emergency Rules) went into
effect for ALL retailers doing business in the state of Colorado.
With regards to online sales, these new rules require
that sales taxes be collected based on the Delivery address (the point at which
ownership of the merchandise passes from the merchant to the customer) and that
ALL applicable taxes (state, county, city and special district(s)) be collected
by the merchant as part of the sales transaction. ( Click here for more information)
Although this represents an added burden to all online
retailers selling into and within the state, compliance is further complicated
by the presence of 71 “self-collecting” home-rule cities within the
state that require:
·
all businesses selling within their
jurisdiction, even if they do NOT have a physical location there, will be required to
register with the relevant tax authority and purchase a local business license
every 2 years,
·
all businesses selling within their jurisdiction
will be required to file a separate tax form specific to that jurisdiction as
well as file forms for the state, county and special district taxes collected,
and
·
make payments to each jurisdiction separately.
While many states (e.g. California, Washington …) have
created central authorities responsible for the collection of ALL sales and use
taxes within the state, whether
originating from sales within the state or from out of state merchants, the
elected savants in Denver have refused to do this. Instead, they have created
what SalesTaxSupport.com calls the “… the nation’s most complicated tax rules”.
Long story short, we will not be able to sell into any of
the self-collecting home-rule cities until the state of Colorado and said cities
create a central authority chartered to collect sales and use taxes for the
entire state.
Starting on December 1, 2018, we will not be able to ship to residents of:
To check the tax status of your shipping address, click here.