Local online retailers! Are you aware of Colorado's new sale tax rules and regulations?
Sales Tax Information for In-State Retailers
Effective June 1, 2019
,
sales tax must be collected and remitted based on the jurisdiction’s tax rate at the point of delivery for the taxable good when taxable goods are delivered to a Colorado address outside the retailer’s jurisdiction, also known as destination sourcing. This includes any applicable state-administered local and special district taxes. For example, if a retailer delivers taxable goods to a customer’s address, sales tax must now be collected at the rate effective for the customer’s address, not the taxes that are in common between the customer’s address and the seller’s location. For a complete list of location/jurisdiction codes for sales tax filing see form
DR0800
.
Temporary Exemptions for Retailers Include:
- Small businesses physically located in the state of Colorado that had less than $100,000 in retail sales within the state during the previous calendar year, until such time that the Colorado Department of Revenue can facilitate a technology solution for looking up sales tax rates for a specific address.
- Small businesses that exclusively use an online marketplace facilitator* would be exempt from collecting and remitting sales tax for sales made in the state of Colorado. The responsibility for collecting and remitting sales tax would fall to the marketplace facilitator.** For additional information regarding the new sales tax law,*** visit the sales tax page for out-of-state retailers.
* A business that conducts retails sales through a marketplace facilitator, but also conducts retails sales through other means such as their own retail store, may still be liable for collection and remittance of sales tax for sales not conducted through the marketplace.
** The provision for marketplace facilitators doesn't go into effect until October 1, 2019.
***
HB19-1240
has been sent to the governor for signature. If it is not acted upon by the governor by May 31, 2019, it automatically becomes law in Colorado. More info on the Colorado General Assembly
website
.
