Colorado – The First Day To Begin Collecting And Remitting Sales Tax Is December 1st

As a result of the Supreme Court South Dakota vs Wayfair decision, the state of Colorado will now collect state sales tax and state-collected local and special district sales tax from out-of-state retailers. This will require out-of-state retailers to get a state of Colorado Sales Tax license in order to collect and remit sales tax. Collection of those taxes will begin the first day of the month after issuance of the sales tax license. The first day to start collecting and remitting sales tax is Dec. 1. Out-of-state retailers are not required to collect sales tax on sales prior to registration.

An out-of-state retailer must apply for a Colorado Sales Tax License and collect Colorado sales tax if, in either the previous or current calendar year the retailer has:

  1. $100,000 or more of gross sales or services delivered in Colorado, including exempt sales; or
  2. 200 or more transactions selling tangible personal property or services delivered in Colorado

Qualifying out-of-state retailers must apply for a state of Colorado Sales Tax License by Nov. 30.

For More Information:
CO DOR – Information for out-of-state retailers