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 can 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.

Companies doing business in Colorado need to register with the Colorado Department of Revenue. In addition, a number of municipalities require registration for the purposes of collecting sales tax.

How to Register

All businesses in Colorado are required to register with the Department of Revenue and obtain a sales tax license.

How to File and Pay

To file and pay taxes in Colorado, businesses can use the Revenue Online online tool or fill out and mail in the Sales Tax / Wage Withholding Account Application (CR 0100), or turning in forms at your localTaxpayer Center.

To file and pay local sales taxes go here.

For a host of tax and registration issues, see the Colorado Online Service Center.

Deadlines

Filing frequencies are determined by the amount of sales tax collected each month. Most companies (with monthly sales tax collections of more than $300) must file monthly on or before the 20th of the month following reporting period.

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 - Avalara TrustFile provides detailed sales tax reporting for online sellers. Allowing businesses to know exactly where, when and how much to file. Ecommerce business owners can use TrustFile to determine whether or not they are collecting the right amount of sales tax in each individual state, and then store a record of their sales tax history securely in the cloud for free.

Colorado Department of Revenue