Asked about Colorado sales and use tax, home-rule cities, CDOR filings.
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General reference only
This Guide is general tax/accounting reference material for AI-assisted workflows. It has not been reviewed for your personal facts, documents, elections, deadlines, residency, filing status, or local procedures. Do not rely on it to file, pay, amend, or take a tax position without review by a qualified professional in the relevant jurisdiction.
Source-cited draft. This Guide is source-cited but has not been reviewed by a licensed practitioner. It may be incomplete, outdated, or wrong.
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Colorado state sales tax rate
2.90%Colorado Revised Statutes § 39-26-106
Maximum combined sales tax rate (state + home-rule city)
~11.2%Colorado Revised Statutes Title 39, Article 26; home-rule city ordinances
Economic nexus threshold (retail sales)
$100,000 in retail salesColorado Revised Statutes § 39-26-102; Colorado Department of Revenue
State-level sourcing rule
Destination-basedColorado Revised Statutes § 39-26-104; Colorado Department of Revenue Rule 39-26-104.3
Number of home-rule cities self-administering sales tax
~70+Colorado Constitution Article XX; Colorado Municipal League
Streamlined Sales Tax (SST) membership status
Yes (associate member)Streamlined Sales Tax Governing Board; Colorado Department of Revenue
General tangible personal property (TPP) — taxability and rate
TAXABLE at 2.9% + localColorado Revised Statutes § 39-26-104
Clothing — taxability
TAXABLE (no exemption)Colorado Revised Statutes § 39-26-104
Grocery food (unprepared) — state-level taxability
EXEMPT from state tax; local tax may still applyColorado Revised Statutes § 39-26-707(1)(e)
Prepared food — taxability
TAXABLEColorado Revised Statutes § 39-26-104; Colorado Revised Statutes § 39-26-707
SaaS (Software as a Service) — taxability
NOT TAXABLEColorado Department of Revenue; Colorado Revised Statutes § 39-26-104 (sales of services generally not taxable)
Canned software (downloaded) — taxability
TAXABLEColorado Revised Statutes § 39-26-102(15); Colorado Department of Revenue
Professional services — taxability
NOT TAXABLEColorado Revised Statutes § 39-26-104 (services not enumerated as taxable)
Manufacturing equipment — taxability
EXEMPTColorado Revised Statutes § 39-26-709
Prescription drugs — taxability
EXEMPTColorado Revised Statutes § 39-26-717
Over-the-counter (OTC) drugs — taxability
EXEMPTColorado Revised Statutes § 39-26-717; Colorado Department of Revenue
Resale — taxability
EXEMPTColorado Revised Statutes § 39-26-102(2); Colorado Revised Statutes § 39-26-704
Quick reference
| Field | Value |
|---|---|
| Jurisdiction | Colorado |
| State rate | 2.90% (lowest in the US) |
| Maximum combined rate | ~11.2% (with home-rule city taxes) |
| Sourcing | Destination-based (state); home-rule cities may differ |
| Economic nexus | $100,000 in retail sales |
| Tax authority | Colorado Department of Revenue (CDOR) |
| Portal | https://www.colorado.gov/revenueonline |
| SST member | Yes (associate) |
| Home-rule cities | ~70+ self-administer their own sales tax |
| Skill version | 2.0 |
CRITICAL: ~70+ home-rule cities self-administer with different rates, rules, and exemptions. Denver, Aurora, Colorado Springs, Boulder are all home-rule.
Transaction pattern library
| Pattern | Taxable? | Notes |
|---|---|---|
| General TPP | TAXABLE 2.9% + local | |
| Clothing | TAXABLE | No exemption |
| Grocery food (unprepared) | EXEMPT from state | Local may still tax food |
| Prepared food | TAXABLE | |
| SaaS | NOT TAXABLE | |
| Canned software (download) | TAXABLE | |
| Professional services | NOT TAXABLE | |
| Manufacturing equipment | EXEMPT | |
| Prescription drugs | EXEMPT | |
| OTC drugs | EXEMPT | |
| Resale | EXEMPT |
Informational only. Review by qualified professional required before filing.
This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a CPA, EA, tax attorney, or equivalent licensed practitioner in your jurisdiction) before filing or acting upon.
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Other Colorado computations in the OpenAccountants Tax Library.
Rendered from the facts database. General reference only — confirm with a qualified professional before acting.
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