Effective Dec. 1, 2018, the Colorado Department of Revenue will adopt new sales tax rules.
The new rules state that “sales tax must be collected and remitted based on the jurisdiction’s tax rate at the point of delivery for the taxable good when taxable goods are delivered to a Colorado address outside the retailer’s jurisdiction.” This includes any applicable state-administered local and special district taxes.
For example, if a retailer delivers taxable goods to a customer’s address, sales tax must now be collected at the rate effective for the customer’s address, not the taxes that are in common between the customer’s address and the seller’s location.
Retailer Action Items
This will require each retailer to add “non-physical locations” in their Revenue Online account. A non-physical location will need to be added for every location to which the retailer delivers a taxable good.
Sales where the customer purchases the taxable good at the seller’s place of business will continue to be taxed at the rate in effect for the retailer’s business location.
Contact a K·Coe Isom tax advisor for questions and guidance, or visit https://www.colorado.gov/pacific/tax/information-state-retailers for more information on these changes.