sales tax

This section will assist you in selecting the appropriate license required to operate your business effectively.

5 Types of Sales Tax Licenses

Retail Sales Tax License

A retail sales tax license is required to sell, rent, or lease products directly to consumers. If conducting both wholesale and retail sales, only a retail sales tax license is needed.

Apply using Form CR 0100.

Wholesaler License

To sell products to other businesses for resale or use in other products, a wholesaler license is necessary, costing $16 for a two-year period.

Apply using Form CR 0100

Single Event

To participate as a vendor in a single event at a location different from your regular business, you need a single event license, which costs $8 per event unless you already hold a wholesale or retail license, in which case there is no charge.

Apply for the single event license using Form DR 0589, “Special Event Application.”

Multiple Event License

To participate in multiple events over two years as a vendor, obtain a multiple event license, which costs $16 unless you already hold a wholesale or retail license, in which case there is no charge.

Apply for the numerous event licenses using Form DR 0589.

Local Licenses

In Colorado, state agencies collect county and most city sales taxes, except for 69 Home-Rule cities that collect their own city sales tax. Businesses operating within any city or county jurisdiction may be required to obtain a local business license.

Updated semi-annually in January and July, Form DR 1002 is available at www.taxcolorado.com.

Fees

To obtain retail and wholesale licenses in Colorado, complete Form CR0100. For multiple and single event licenses, use Form DR 0589. Standard state sales tax licenses cost $16 for a two-year period, prorated based on the quarter in which you apply.

Collecting Sales Tax in Colorado

To sell products directly to consumers, you must collect sales tax, which varies based on your business location, type, and transaction specifics. Use Form DR 1002 to combine applicable local tax rates.

State

All businesses selling tangible, personal property in Colorado must collect the 2.9% state sales tax.

 

 

 

County

 51 counties included Boulder County have implemented county sales taxes, which are collected centrally by the state.

City/Town

Superior has their sales taxes collected by the state.

Special Districts

Businesses located in the Denver Metro area must collect a total of 1.1% for the Regional Transportation District (RTD) and Scientific and Cultural Facilities District (SCFD). This area includes Boulder County.

Lodging

Superior does not have any hotes, therefore, lodging taxes are not collected.

Special Taxes

In addition to standard sales taxes, Colorado imposes various special taxes such as Local Improvement District tax, Mass Transit District tax, Multi-Jurisdictional Housing Authority (MHA) tax, Public Safety Improvement (PSI) tax, Metropolitan District Tax (MDT), and Local Marketing District Tax (DR 1002).

Home-Based Business

If your small home-based business in Colorado generates less than $1,000 in annual sales, you are exempt from obtaining a state sales tax license. However, you must still collect and remit all applicable sales taxes and file a “Combined Annual Retail Sales Tax Return,” DR 0100A, by the end of each calendar year. Additionally, without a license, you cannot purchase inventory or supplies at wholesale. Home rule city residents should check with local officials for specific sales tax requirements.

Charitable Organizations

Colorado grants 501(c)(3) charitable organizations exemption from state sales tax upon request using Form DR 0715. This exemption applies to purchases used in the organization’s regular operations, requiring presentation of an exemption certificate or keeping one on file with vendors for tax-exempt purchases over $100 paid by organization check or credit card. Charitable organizations still need a sales tax license and must collect sales tax on public sales.

Mobile Business

If your business operates at various client locations or is mobile, you must collect the appropriate sales tax for each point of sale. This requirement applies to diverse businesses like traveling salespersons, mobile locksmiths, and interior decorators. While you need one retail sales tax license for state taxes, you may require multiple city sales tax licenses from Home Rule cities where you conduct business.

Craft Shows

To sell at events, you need a state multiple events license. If the event takes place in a Home Rule city that collects its own city sales tax, you might also need to obtain a separate city sales tax license for that specific location.

Flea Markets

Flea markets operating more than three times annually are categorized as retail locations. If you sell at a flea market more than five times a year, you must obtain a retail sales tax license instead of using an event license.

Multiple Business Locations

Businesses with multiple permanent locations must obtain a separate license for each site and collect the applicable tax. Vending machine operators and mobile businesses, however, require only one state license but must report tax collections for each additional site.

Filing Tax Returns

Once you receive your sales tax license, you’ll receive preprinted “Combined Retail Sales Tax Return” forms (DR 0100) from the Department of Revenue. Depending on your license type and monthly tax collection amount, filing frequency varies: annually for wholesalers, quarterly if collecting under $300 monthly, and monthly if $300 or more.

Returns are due by the 20th of the month following the taxing period, adjusted for weekends or holidays.

For single or multiple-event licenses, each event requires a separate return by the 20th of the following month.

Penalties apply for late filing, escalating with time and interest on unpaid amounts. All periods require a filed return, even if no tax was collected, with all sections completed on the DR 0100 form.

File state taxes and manage your state tax account