Colorado

The Colorado (CO) state sales tax rate is currently 2.9%. Depending on local municipalities, the total tax rate can be as high as 10.4%.

Colorado is a “home rule” state. Local-level tax rates in the state of Colorado are quite complex compared against local-level tax rates in other states. Colorado sales tax be levied at the city/county/school/transportation and SPD (special purpose district) levels.

For sales tax registration, Colorado switched systems in October 2010. According to the Colorado Department of Revenue, all businesses must be using a number known as the new Colorado Account Number, which is eight digits. Numbers obtained prior to October 2010 are seven digits. In order to increase the accuracy of tax records, all businesses with seven digit numbers should add a “0″ at the beginning of those original numbers. For example, if your account number was L12-34567-0000, your new number is 01234567.

Avalara Sales and Use Tax Products for Colorado

AvaTax – AvaTax is a powerful, online sales tax compliance solution that provides all businesses with a level of sales tax automation that until now has been available only to Fortune 500 companies. AvaTax’s transaction-based service model and seamless integration into business applications gives you rapid access to all jurisdiction assignments and real-time sales tax calculations. Cutting-edge technologies and superior processing logic can manage even the most complicated tax issues, such as situs, nexus, tax tiers, tax holidays, exemptions, certificate management and product taxability rules.

TrustFile Forms – TrustFile Forms helps you streamline the paper returns preparation process with a catalog of more than 1,000 state-approved forms for US States, US Possessions and Canada.

Colorado Department of Revenue