Colorado Sales Tax

The current state sales tax rate in Colorado (CO) is 2.9 percent. The total tax rate might be as high as 11.2 percent depending on local municipalities. The Colorado Department of Revenue requires all businesses doing business in the state to register. In addition, for the purpose of collecting sales tax, a handful of towns demand local registration. Colorado is a state with “home rule.” When compared to local-level tax rates in other states, Colorado’s local-level tax rates are highly complicated. The municipal, county, school, transportation, and SPD (special purpose district) levels can all levy sales taxes in Colorado. Colorado switched methods for sales tax registration in October 2010. The Colorado Department of Revenue states that all firms must use an eight-digit number known as the new Colorado Account Number. Prior to October 2010, all numbers were seven digits. All firms having seven-digit numbers should add a “0” to the beginning of their original numbers to improve the accuracy of tax records. In Colorado, economic linkage is enforced. Marketplace facilitators must collect and remit sales tax on taxable sales beginning October 1, 2019. To estimate sales tax rates, remote sellers will have to employ destination sourcing.

Sales Tax Rates in Colorado by County

In Colorado, when do you have to charge sales tax?

If your business has a sales tax nexus in Colorado, you must charge sales tax. In different states, the term “sales tax nexus” signifies different things. It could be having a physical site (e.g., a brick and mortar business) or having someone working for you in the state. It can also refer to having a ‘affiliate’ or ‘click through’ sales tax nexus in the case of ecommerce.

Check the Colorado government’s sales tax website to see if you should be charging sales tax in your state.

In Colorado, which items are exempt from sales tax?

Prescription medications, for example, are free from sales tax in Colorado. There are also Colorado sales tax exemptions that can be used if the seller or buyer meets specific requirements.

Check the Colorado government’s tax website for a complete list of exemptions.

What is Colorado known for?

Colorado is known for:

• Its high altitude
• Winter skiing
• Wildlife
• The majestic landscape of mountains, forests, and canyons

Colorado Fun Facts

• The word ‘Colorado’ means ‘colored’ or ‘colored red’ in Spanish. The Colorado state was named after the Colorado River, which Spanish explorers named ‘Río Colorado’ (meaning ‘colored river’) for the red silt the river carried from the mountains.
• Colorado is one of the states that form the Four Corners, the only location in the United States where four states intersect at one point. The other three states are Arizona, New Mexico, and Utah.
• Colfax Avenue in Denver is the longest continuous street in America
• The world’s first rodeo was held on July 4th, 1869 in Deer Trail.
• Colorado has the highest paved road in North America. The road to Mt. Evans climbs to 14,258 ft. above sea level.
• Denver is nicknamed “The Mile High City” because its official elevation is exactly one mile (5,280 feet) above sea level.
• The 13th step of the state capital building in Denver is exactly 1 mile high above sea level
• Dove Creek is the pinto bean capital of the world.
• The Pike’s Peak Cog Railway in Manitou Springs is the highest railway in the United States, with a peak elevation of 14,111 feet above sea level.
• Colorado is the only state with an official State Cactus: Claret cup cactus.
• Royal Gorge Bridge in Caňon City, Colorado, is the highest bridge in the United States at 955 feet.
• In 2012, Colorado (along with Washington) became the first to legalize marijuana (weed) for recreational use.
• In Colorado, it is unlawful to mutilate a rock in a state park.

Tourist Attractions in Colorado

• Arapahoe Basin: Ski area in Summit County, Colorado.
• Cheyenne Mountain Zoo: Zoo in Colorado Springs, Colorado.
• Denver Art Museum: Museum in Denver, Colorado.
• Denver Botanic Gardens: Botanical garden in Denver, Colorado.
• Denver Museum of Nature and Science: Museum in Denver, Colorado.
• Denver Zoo: Zoo in Denver, Colorado.
• Garden of the Gods: Park in Colorado Springs, Colorado.
• Hanging Lake: Lake near Glenwood Springs, Colorado.
• Keystone Resort: Ski resort in Keystone, Colorado.
• Loveland Ski Area: Ski area in Georgetown, Colorado.
• Maroon Bells: Mountain peaks near Aspen, Colorado.
• Mesa Verde National Park: National park in southwestern Colorado.
• New Belgium Brewing: Brewery in Fort Collins, Colorado.
• Pikes Peak: Mountain summit in central Colorado.
• Red Rocks Amphitheatre: Amphitheater in Morrison, Colorado.
• Rocky Mountain National Park: National park in northern Colorado.
• Royal Gorge Bridge & Park: Amusement near Canon City, Colorado.
• Seven Falls: Waterfalls in Colorado Springs, Colorado.
• The Broadmoor: Luxury resort in Colorado Springs, Colorado.