Colorado Economic Nexus Grace Period Ends May 31, 2019

[April 29, 2019] The Colorado Department of Revenue provided a grace period for in-state and out-of-state retailers to comply with new destination sourcing and economic nexus rules. This grace period ends on May 31, 2019. Beginning June 1, 2019, in-state retailers will be required to collect and remit sales taxes based on the jurisdiction’s tax rate at the point of delivery for the taxable good when taxable goods are delivered to a Colorado address outside the retailer’s jurisdiction. This includes any applicable state-administered local and special district taxes. Additionally, beginning on the same date, out-of-state retailers with $100,000 or more in gross sales into Colorado, in the current or previous calendar year, will be required to register for a sales tax license and collect Colorado state sales tax and any local sales tax for state-administered localities.

As a reminder, Sovos is Colorado DOR certified.

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Author

Alex Samuel

Alex Samuel is a Junior Regulatory Counsel at Sovos Compliance. Within Sovos’ Regulatory Analysis function, Alex focuses on enterprise sales tax issues arising in various domestic and international jurisdictions. Prior to Sovos, Alex worked as an attorney at New Hampshire Legal Assistance. Alex is a member of the New Hampshire and Massachusetts Bars, earned his B.S. from the University of Minnesota and his J.D./LL.M from the University of New Hampshire School of Law.
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