In-State Businesses

Doing Business In Colorado

In general, a retailer is doing business in Colorado if the retailer sells, leases, or delivers tangible personal property or taxable services in Colorado or engages in any activity in Colorado in connection with the selling, leasing, or delivering of tangible personal property or taxable services for use, storage, distribution, or consumption in Colorado.

A retailer is doing business in Colorado and subject to all sales tax licensing and collection requirements if the retailer maintains any place of business in Colorado directly, indirectly, or by a subsidiary. Such a place of business may include an office, distribution facility, salesroom, warehouse, storage place, or home office of a Colorado resident employee. For more information on how to collect and remit sales tax, visit the Sales & Use Tax web page. 

Temporary Small Business Exception

HB19-1240 provides a temporary exception to destination sourcing for small businesses physically located in the state of Colorado that have less than $100,000 in retail sales during the previous calendar year. Such sellers may source their sales to the business location of the seller and collect all applicable state-administered and special district taxes for their business's jurisdiction. This is called origin sourcing.

Should the small business exceed $100,000 in retail sales during a calendar year, the business must transition to using destination sourcing. Businesses will have until the first of the month, 90 days following the date they exceed the $100,000 threshold to begin using destination sourcing. 

The temporary small seller exception is effective until a new Global Information System (GIS) from the Department of Revenue is available online. After the launch of the GIS, all businesses will have 90 days to transition to destination sourcing.

To be alerted by email when the GIS goes live sign up here.