Colorado imposes sales tax on retail sales of tangible personal property. In general, the tax does not apply to sales of services, except for those services specifically taxed by law. However, in the case of a mixed transaction that involves a bundled sale of both tangible personal property and service (whether or not such service is specifically taxed), the entire purchase price may be taxable unless certain conditions exist.
The Colorado Department of Revenue administers not only state sales tax, but also the sales taxes imposed by a number of cities, counties, and special districts in Colorado.
In general, any retailer making sales in Colorado is required to collect the applicable state and state-administered local sales taxes. The requirement to collect tax applies regardless of whether the sale is made at a retailer’s location in Colorado or delivered to the customer at a location in Colorado. A retailer may be required to collect tax even if it has no physical presence in Colorado.
Any retailer that is required to collect Colorado sales tax must obtain and maintain a Colorado sales tax license. They must also file returns and remit collected taxes at regular intervals, generally on a monthly basis. Retailers must maintain all records necessary to determine the correct amount of tax and provide these records to the Department upon request. You can apply for a Colorado Sales Tax License at this link.
Click here to go to the Colorado Salex Tax Guide.