- Colorado sales tax applies to tangible personal property, prepared food and drink, and specific services.
- Use tax is imposed on storing, using, or consuming tangible goods in Colorado.
- Colorado has state, county, city, and special district sales tax rates.
- State sales tax rate is 2.9%.
- City tax rates vary from 0.5% to 4%.
- County tax rates vary from 0.25% to 3%.
- Special district tax rates vary from 0.10% to 5.50%.
- Some transactions are exempt from sales and use tax, including food for home consumption, farm equipment, and renewable energy components.
- Nexus in Colorado is established when a taxable person is doing business in the state.
- Physical nexus is established when a taxable person maintains an office, salesroom, warehouse, or similar facility in Colorado.
- Physical nexus is also established when a taxable person regularly or systematically advertises in Colorado.
Source: vatabout.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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