New sales tax collection law for Colorado..

[def90]

I work in construction and I do projects all over the state. because I sell goods in the process of doing business I charge my clients sales tax on these goods.

The basis of sales tax collection is dependent on where the goods are delivered. For instance, my business is located in Boulder, I am required to collect Boulder sales tax under my Boulder Sales Tax license if the goods I sell are delivered within Boulder, State tax for everyone, county tax if the project is within Boulder County and RTD tax if the project is within the RTD district. if I sold a project to a client in Parker I would only charge State sales tax and RTD tax, I was not beholden to collect any county or city tax for Parker.

The new sales tax law that was implemented December 1st now requires me to collect any and all sales taxes for any municipality that is administered/collected by the state that I deliver goods to. For instance Castle Pines sales tax is collected by the state, if I have a project in Castle Pines I will now have to collect Castle Pines sales tax as well as Douglas County sales tax.

Also.. If I did business in a city such as Littleton that collects it's own tax in the past if it was a one off project they would usually not require me to collect the tax for them. Now it is likely that those self collecting jurisdictions are also going to want anyone delivering goods to their jurisdictions to maintain a sales tax license for their jurisdiction as well even if you make a one time sale.

This is going to be a huge drag on resources for small businesses that deliver goods to various jurisdictions throughout the state.


How this will affect most people is that lets say I order an AK parts kit from Arms Of America in Colorado Springs, they used to charge Colorado State sales tax, now they will also have to charge me Boulder County sales tax and Boulder City sales tax.