Contact UsDid Colorado's "NOTICE AND REPORTING REQUIREMENTS FOR NON-COLLECTING RETAILERS" take effect July 1st?
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Alan Smith
Yes, Colorado's reporting requirements law took effect July 1, 2017. From the July revision of General FYI 10 Consumer Use Tax: Purchases made over the internet
Tangible personal property purchased over the internet and delivered into Colorado is not exempt from taxation simply because it was purchased online. However, if the seller does not have a store, warehouse, or other physical location in Colorado, the seller might not collect the applicable sales tax or retailer’s use tax at the time of the purchase. If a person, business, or other legal entity purchases tangible personal property online for use in Colorado, and pays no tax to the seller at the time of purchase, that purchaser will owe consumer use tax on the purchased property.
Beginning July 1, 2017, if you purchase taxable property over the internet from an out-of-state retailer that does not collect Colorado tax, the retailer must:
• present you with a notice at the time of the sale advising of your obligation to pay consumer use tax directly to the Department;
• send you an annual summary in January listing the purchases you made during the prior year; and
• report the total dollar amount of the purchases you made to the Department.
The annual summary you receive will assist you in reporting and paying consumer use tax. See “How to Report and Pay Consumer Use Tax” below for information about reporting and paying consumer use tax.
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367 weeks ago
Tangible personal property purchased over the internet and delivered into Colorado is not exempt from taxation simply because it was purchased online. However, if the seller does not have a store, warehouse, or other physical location in Colorado, the seller might not collect the applicable sales tax or retailer’s use tax at the time of the purchase. If a person, business, or other legal entity purchases tangible personal property online for use in Colorado, and pays no tax to the seller at the time of purchase, that purchaser will owe consumer use tax on the purchased property.
Beginning July 1, 2017, if you purchase taxable property over the internet from an out-of-state retailer that does not collect Colorado tax, the retailer must:
• present you with a notice at the time of the sale advising of your obligation to pay consumer use tax directly to the Department;
• send you an annual summary in January listing the purchases you made during the prior year; and
• report the total dollar amount of the purchases you made to the Department.
The annual summary you receive will assist you in reporting and paying consumer use tax. See “How to Report and Pay Consumer Use Tax” below for information about reporting and paying consumer use tax.