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 may be doing business in Colorado even if that retailer maintains no physical location in the state, but not if the retailer meets the small retailer exception described below. A retailer is doing business in Colorado if the retailer solicits business and receives orders from Colorado residents by any means whatsoever. Solicitation may be done by any one of the following:
- Direct representatives, indirect representatives, or manufacturers' agents
- Distribution of catalogues or other advertising
- Use of any communication media
- Use of the newspaper, radio, or television advertising media.
Small Business Exception
If a business does not have more than $100,000 of retail sales into the state of Colorado in the past calendar year they are not required to collect and remit state sales tax. They must still notify customers of their obligation to remit use tax.