DOR Taxation web site

Corporate Income Tax - Nexus / Residency

 

 Number Title and Description
 GIL-09-001 Taxability of service charge / nexus of call center employing independent contractors to perform work for clients in state
  Income derived from Colorado sources is taxable.  Taxability of mark-up charged by in cases of resellers, agents, brokers, third party contracts.  General discussion of nexus for income and sales tax purposes.
 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.
 GIL-09-012 Income Tax Nexus / PL 86-272 / warehouse
  Company, whose only contact with Colorado is to make drop shipments of goods to recipients located in Colorado and to maintain a warehouse in Colorado, has nexus with Colorado for income tax purposes and is not protected by PL 86-272.
 GIL-09-028 Insurance company income tax nexus
  Insurance company does not create nexus if only contact is to register with the Secretary of State to do business in Colorado, but may have nexus if insurance law requires taxpayer to  administer claims in state.
 GIL-12-013 Training Classes for Corporations
  The provision of education and training is generally a non-taxable service.  If tangible personal property is transferred from the educational service provider to the student, this may change the tax obligation. Company may need to remit income tax if it has sufficient nexus to be considered to be doing business in Colorado.
 GIL-12-019 Nexus
  Nexus can be established by the presence of taxpayer's employees in this state, even if their work is not directly related to the taxable transaction.