DOR Taxation web site

Retail

If your business sells tangible personal property, either retail or wholesale, you must obtain a Colorado sales tax license and maintain a sales tax account with the State of Colorado. Vendors of taxable services must obtain a Colorado sales tax license and must charge sales tax on these services. If you have more than one location where sales are made, a separate license is required for each location. For example, if a company has a chain of stores, each store must have a license.

 

Colorado imposes a sales tax of 2.9% on retail sales transactions of 17 cents or more. For state-collected jurisdictions, most goods are subject to sales tax. In addition, some items are exempt from state sales and use tax, but may be subject to city and county sales taxes, at the option of the local jurisdiction. An example of these include food for home consumption, electricity, gas and fuel oil for residential use. Please see the publication Colorado Sales/Use Tax Rates (DR 1002) for more information.

 

In addition, if a business makes sales at a location other than its regular business location with three or more other vendors, a 'special event' license must be obtained. Examples of events are craft or collector's shows. This special event license is required whether or not you have a permanent business location.

 

An individual who makes retail sales from a private residence that total $1,000 or less in a calendar year is not required to have a sales tax license. However, taxes on these sales must be collected and paid by April 15 of the following year on the Combined Annual Retail Sales Tax Return (DR 0100A).


 

For more information on this topic, see Publication FYI Sales 8, Small Home Businesses.