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Requirements for Collection
Starting Dec…. Only companies that have processed more than 200 transactions or done $100,000 in sales in Colorado during the current or prior tax year have to collect. They have to comply whether they make 10,000 sales a year or one sale.
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Local Tax Rates
Municipal governments in Colorado are also allowed to collect a local-option sales tax that ranges from 0% to 8.3% across the state, with an average local tax of 3.37% (for a total of 6.27% when combined with the state sales tax).
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State Tax Information
- The state sales tax rate in Colorado is 2.9%.
- The Colorado state sales tax rate is currently 2.9%.
- Colorado state sales Tax rate is currently 2.9%. The total tax rate can be as high as 11.2%.
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Overview
Starting Dec…. Only companies that have processed more than 200 transactions or done $100,000 in sales in Colorado during the current or prior tax year have to collect. They have to comply whether they make 10,000 sales a year or one sale.
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Regulations
The U.S. Supreme Court decided in the South Dakota v. Wayfair, Inc. case that each state may individually decide if they want to implement taxes on sales made out of the state by online or remote sellers.
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Enforcement
The Colorado Department of Revenue has announced that it will require by regulation collection of sales tax by online sellers starting November 1, 2018.
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Tax Rates and Exemptions
Colorado has a statewide sales tax rate of 2.9%, which has been in place since 1935. Municipal governments in Colorado are also allowed to collect a local-option sales tax that ranges from 0% to 8.3% across the state, with an average local tax of 4.12% (for a total of 7.02% when combined with the state sales tax). You can lookup Colorado city and county sales tax rates here.