• Brian Johnston

CO Sales Tax Changes

In a nutshell... if you ship products to a customer's home in Colorado, you now have to calculate sales tax based on their address.

What's your solution to managing EVERY tax jurisdiction in Colorado? Want help using a cloud-based sales tax solution -- give me a call.

From the CO Dept of Revenue:

Effective December 1, 2018, the Colorado Department of Revenue will adopt new sales tax rules that will change how retailers in Colorado collect sales tax. These new rules will have a substantial effect on how businesses collect sales tax.

Beginning December 1, 2018, when taxable goods are delivered to a Colorado address outside the retailer’s tax jurisdiction, sales tax must be collected and remitted to the Department based on the point of delivery for the taxable good, including any applicable state-administered local and special district taxes.

Thus, if a retailer delivers taxable goods to a purchaser’s address, which is outside the jurisdiction of the retailer, sales tax must be collected based on the purchaser’s address rather than the taxes that are in common between the purchaser’s address and the seller’s location.

Sales where the purchaser receives the product at the retailer’s

place of business will continue to be taxed at the rate in effect for the retailer’s business location


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