Colorado Sales Tax from Aragon Tax Return Services

The State of Colorado applies sales tax to the retail sale of tangible personal property. Generally, this tax does not cover service sales, unless those services are specifically taxed by law. However, in cases of mixed transactions involving a bundled sale of both tangible personal property and service, the entire purchase price may be subject to tax unless certain conditions are met.

The Colorado Department of Revenue oversees not only state sales tax but also sales taxes levied by various cities, counties, and special districts in Colorado. Nonetheless, the Department does not handle sales taxes imposed by certain home-rule cities, which manage their own sales taxes. The information in this document pertains solely to state and local sales taxes managed by the Colorado Department of Revenue.

Generally, any retailer conducting sales in Colorado must collect the relevant state and state-administered local sales taxes. This collection requirement applies whether the sale occurs at a Colorado retailer's location or is delivered to a Colorado customer elsewhere. Even without a physical presence in Colorado, a retailer may still be obligated to collect tax.

Retailers mandated to collect Colorado sales tax must acquire and keep a Colorado sales tax license. They must also submit returns and remit the collected taxes regularly, usually on a monthly basis. Retailers must retain all records necessary for determining the correct tax amount and provide these records to the Department upon request.

This document aims to offer retailers general guidance on sales tax licensing, collection, filing, remittance, and recordkeeping obligations as stipulated by law. More details on license applications and renewals, filing methods, forms, and instructions can be accessed online at Tax.Colorado.gov/sales-use-tax(opens in new window). Nothing in this document alters or seeks to alter Colorado's statutes and regulations. Retailers are advised to consult their tax advisors for guidance on specific situations. We can assist in filing your quarterly sales tax.

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