February 2019: Colorado Report Updates

February 2019:

We've made some updates to the Colorado Sales Tax Report in your TaxJar account to match the state's new guidelines regarding destination-based collection.

  • These changes (outlined below) will make it easy to report sales by destination when you file!

No Retailer's Use Tax Report

The first big change in that the Retailer's Use Tax section is no longer displayed in 2019 Reports.
  • After the state's update to destination collection, all Sellers with nexus in Colorado (physical, economic, or otherwise) are required to have a Sales Tax account and collect sales tax on ALL taxable sales. 
  • As as result, Retailer's Use Tax accounts will only be applicable to sellers who do not have nexus in Colorado (physical, economic, or otherwise) who wish to collect and remit tax in this state despite having no obligation to do so. 
  • For this reason, our Colorado Report for sales after January 1, 2019 and later assumes that you have a Sales Tax account and are required to report sales by destination when you file

In-state and out-of-state sellers see the same jurisdiction breakdowns

With destination sourcing, all sellers will collect sales based on the buyer's jurisdiction and file a sales tax return for each location where you made sales during the filing period.

  • Because this Report is based on destination sourcing, you will not need to enter a nexus address in your Colorado State Settings.
  • The Service Fee calculations in the state portion of the Report include excess tax collected at the state level: Service fee = (excess tax + expected tax) * service rate

Sales tax return details are nested in the row for each location.

Sellers are required to register a Non-Physical Location or Site for each location where they made sales during the filing period because the state requires a sales tax report for each individual location.

  • If you click the arrow at the far left end of the row, the Report will expand to display an additional breakdown of all the details you'll need for each Non-Physical Location where you made sales. 
  • You'll also see RTD/CD row for each jurisdiction once the jurisdiction row in the Report is expanded.
  • We've added a column for “Total Due for Site” for each individual location: Total due for site = (excess tax + expected tax) - service fee
  • We also added a total for “Total Due for All Sites” row which is a sum of “Total Due for Site” for all locations.

Deductions and Exemptions are listed separately

  • Deductions, such as services or sales to resellers/wholesalers or government entities are exempt statewide, so those are called out in the top section of the Report for state taxes.

  • Other types of exemptions, such as Food and Groceries, which can vary from jurisdiction to jurisdiction are listed in the Exemptions column in the individual jurisdiction breakdowns.

Excess Tax

  • We also now include an estimate of Excess Tax Collected in the Expected Report.

  • Excess tax amounts can be reported in the "Excess Tax" collected row of the state's return form:

Self-Collecting Home Rule Cities

  • If you have added a nexus address located in a Home Rule City in your State Settings, you'll see the sale for that city listed separately in the "Local Sales Taxes for Self collecting Home Rule Cities" section of the Report. 
  • As we mention here, we currently support Reporting for a single location in a state, which means that we'll display Reporting for a single Home Rule city in your Colorado Report. 

Please note: Sales for the Self-Collecting Home Rule cities must be filed separately and cannot be reported in the State Sales Tax Return.

  • As we mention here, if you are enrolled in TaxJar's AutoFile for Colorado, our system will submit a Destination based Sales Tax Return for state-administered cities, counties and districts for sales made 1/1/19 and later.
  • TaxJar will NOT AutoFile sales tax returns for Colorado’s Self-Collecting Home Rule Cities.
  • You can view lists of Colorados state-collected cities and counties, as well as home-rule cities, in the DR1002 publication found here.
  • If you need to file returns for Home Rule cities, you will be responsible for submitting those returns and payments separately.
  • If you are a remote seller and your tax calculation engine calculates Home-Rule city taxes, all Home-Rule city taxes you collected will be remitted to the state as excess tax.

Split-Rate Locations:

  • Please note that Colorado has a few location codes that have multiple taxing jurisdiction requirements.
  • The TaxJar Report for Colorado combines these locations into a line with multiple RTD/CD and/or City/LID items.
  • When reporting these locations to the state there may be some small differences in the sales tax calculated due to the combined locations.

100206 is:

AURORA-ARAPAHOE unincorporated Arapahoe County including special districts RTD and CD.
BENNETT-ARAPAHOE unincorporated Arapahoe County including special district CD

  • This location is listed as 10-0206 AURORA-ARAPAHOE (0206) / BENNETT-ARAPAHOE (0206) in the CO Report. 
  • Report the “gross sales” to AURORA-ARAPAHOE (0206) on the Colorado Revenue Online.

110206 is:

COAL CREEK C.-JEFFERSON unincorporated Jefferson County including special districts RTD and CD
LITTLETON-JEFFERSON unincorporated Jefferson County with special districts RTD, CD and LID

  • This location is listed as 11-0206 COAL CREEK C.-JEFFERSON (0206) / LITTLETON-JEFFERSON (0206) in the CO Report.  
  • Report the “gross sales” to LITTLETON-JEFFERSON (0206) on the Colorado Revenue Online.

120206 is:

AURORA-ADAMS unincorporated Adams County including special districts RTD and CD
BENNETT-ADAMS unincorporated Adams County including special district CD

  • This location is listed as 12-0206 AURORA-ADAMS (0206) / BENNETT-ADAMS (0206) in the CO Report.
  • Report the “gross sales” to AURORA-ADAMS (0206) on the Colorado Revenue Online.