DOR Taxation web site

Collect and File

Cup of Pencils

Collect Tax
Generally a business is responsible for collecting sales tax on any sale of tangible personal property made within the state. Any item priced at more than 17 cents is subject to 2.9%Colorado state sales tax plus all applicable city, county and special district sales taxes. City and county sales taxes collected by the state are administered in the same manner as state sales tax.

If the sale is subject to state sales tax, it is also subject to state-collected local sales tax. See our  Sales Tax Rate Charts for how much tax to collect on a particular item based on the total tax rate at a business location.

 

Sales tax rate changes occur every January and July. A list of all sales tax rates can be found online through our  Local Sales Tax Rate System  or in the publication  Colorado Sales Tax Rates (DR 1002) .

 
File Returns

Once you register for a buisness with the Colorado Department of Revenue you will receive sales tax forms by postal mail depending on your filing frequency.

  • If you maintain a single business location these forms will be in a coupon book that contains forms for the entire year.
  • Seasonal, wholesalers, annual filers and accounts with multiple locations will receive preprinted forms approximately ten days before the close of each filing period. Each form will be preprinted with the licensee's name, address, account number, the taxing districts for which you normally collect tax, the tax rates, and the return's due date.
  • We offer a Managed Audit Program  for mid-sized businesses to conduct a self-audit with guidance from a Revenue auditor.

 

Information regarding the Department of Revenue's transition to a new tax accounting system.