DOR Taxation web site



Number Title and Description
 GIL 07-005 Nexus re: special events
  Out-of-state retailer which held special events in Colorado may have nexus for sales tax collection.  Retailer's status as a 501(c)(3) does not make its sale exempt.
 GIL 07-008 Nexus of out-of-state distributor
  Discussion of nexus for out-of-state distributor .
 GIL 07-011 Drop shipments, wholesale sale documentation
  Out-of-state supplier not liable for sales or use tax for property delivered to in-state consumer.  Out-of-state retailer may use another state's sales tax license to document wholesale sale exemption.
 GIL 07-012 Nexus / Local sales tax
  Discussion of collection of local sales and use taxes.
 GIL 07-023 Nexus
  Out-of-state distributor does not have nexus to Colorado.
 GIL 07-026 Nexus / training seminars
  Out-of-state retailer which conducts the following activities in state has nexus: training seminars, sales representatives, arrange financing, and delivers product.
 GIL 07-030 Nexus of Application service provider (ASP)
  Nexus discussion of ASP.
 GIL 07-031 Drop shipments
  Distributor that shipped by common carrier and has not representatives, store or other connection with state does not have nexus.  However, distributor that does not have nexus is nevertheless obligated to collect tax if it voluntarily obtained sales tax license.
 GIL-08-029 Leased property / Local sales tax
  Local sales tax does not apply to retailer/lessor who did not have presence in local jurisdiction.
 GIL-09-008 Sales Nexus created by related service activity in state / Income tax nexus
  Non-taxable services may create nexus for sales tax collection for one to two sales per year by nonresident single member LLC.  Income generated from sources within Colorado subject to Colorado income tax.


Direct Marketing Advertising Material
  Non-taxable Out-of-state direct marketing company subject to consumer's use tax for material mailed to Colorado recipients. 
 PLR-11-006 Local Sales Tax
  The collection of local sales and use taxes depends on the local tax jurisdiction in which both the retailer and customer are located. The means by which a product is delivered can affect whether local sales and use tax applies.


Local Sales Tax on Internet Sales


An internet retailer who has a business presence in a local tax jurisdiction must collect that jurisdiction's sales tax.

 PLR-12-002 Affiliate Nexus
  Company has nexus in Colorado because it is a component member of a combined group of corporations and another component member has a business presence in Colorado. In addition, Affiliated Company is an indirect representative of Company when it acts on behalf of Company to solicit and facilitate sales and sales-related activities because, among other reasons, it accepts returns on behalf of Company and participates in a loyalty point program with Affiliated Company. Therefore, Company must open a sales tax account and retailer's use tax account to report and collect local and special district sales taxes for sales shipped into local jurisdictions in which Affiliated Company stores are located.
 GIL-12-008 Sales to Native American Tribal Members and Tribal Governments
  A sale of tangible personal property to a Native American tribal member is exempt from sales tax if the sale occurs on the tribal member's tribal land. However, sales to non-tribal members on tribal lands are not exempt, and sales to tribal members off the member's tribal lands are not exempt.
 GIL-12-012 Non-resident Leases of Passenger Cars
  The place where the vehicle is registered will determine which state and local taxes apply. If the person leasing the vehicle is, at the time the lease is executed, a non-resident of Colorado and immediately takes the vehicle to another state for use outside of Colorado, then Company/dealer is not liable to collect any taxes on the leased vehicle.
 GIL-12-016 Affiliate Nexus
  The affiliate nexus rule applies to state-administered localities.
 GIL-12-018 Special Mobile Machinery
  When Company and lessee / purchaser are located in the same tax jurisdiction, then Company must collect sales tax for that state-administered local tax jurisdiction, but does not have an obligation to collect the local sales taxes of other local tax jurisdictions in which Company does not have a sufficient nexus.
 GIL-13-027 Drilling Equipment
  Company’s purchases of steel, cement, pipe, and other material from suppliers are not wholesale purchases because Company alters and uses the materials to build structures. If the sale of equipment occurs outside Colorado and Company pays sales or use tax to another state and Company, thereafter, moves the machinery to Colorado for use in Colorado, then Company must pay Colorado state use tax and any state-administered local use tax applicable to the location where the machinery is registered. Company is entitled to a credit against any such Colorado state and local use taxes equal to the amount of sales or use tax paid to the other state.
 GIL-14-005 Mail Order Sales
  Company is doing business in Colorado and is required to collect sales tax on sales made into Colorado. Company must collect local sales taxes in jurisdictions in which Company shares with the purchasers. If Company ships product into a local jurisdiction in which it does not have a direct or indirect location, then Company should report the sale on its Retailer’s Use Tax Account and collect state use tax and, if the customer is within a special district that levies a use tax, any applicable special district use tax.
 GIL-14-010 Doing Business in Colorado
  A shipper has substantial nexus with Colorado if it uses a contract carrier, which is an agent of the shipper, to make regular deliveries into Colorado.
 GIL-14-015 Nexus for Sales and Income Taxes
  In general, a seller has sales tax nexus in Colorado if it has employees or independent contractors in this state, even if their activities are completely unrelated to the sales transactions.  A contract carrier, unlike a common carrier, can also create substantial nexus with Colorado (and the local jurisdictions into which it delivers goods) if Company regularly ships goods via a contract carrier into Colorado. A company has substantial nexus for purposes of income tax if it has property, payroll, or sales in Colorado that exceed a certain dollar thresholds. Employees in Colorado for less than a day do not give rise to a wage withholding obligation. However, if the employee performs services for more than a single day in Colorado, they are required to file and pay Colorado income tax, and the employer is required to withhold and remit Colorado income tax.