Colorado’s efforts to simplify sales and use tax compliance has come a long way in six years. Today, every business selling into Colorado is impacted by the statewide Sales and Use Tax System (SUTS). Learn how best to proceed with SUTS and avoid the landmines of registering late with our latest Guide to Colorado’s Sales and Use Tax System.

By Judy Vorndran

Colorado is known for majestic mountains and landscapes. It is also known as being one of the most complicated states to comply with state and local tax.

But we have exciting news. I’ve been working on this for over 6 years with the coalition to Simplify Colorado’s Sales Tax! The Colorado’s Department of Revenue’s Sales and Use Tax System (SUTS) is (almost) fully operational for online sellers. Included is a GIS tax rate lookup tool, taxability and exemption matrices, and a single portal to deal with almost all the home rule jurisdictions.

We are close, but not quite at 100% participation of all home rule jurisdictions in Colorado. Aspen and Grand Junction go live in April. Telluride remains TBD. And Delta and Sterling have NOT signed the SUTS agreement, as of this writing (see SUTS Colorado Department of Revenue SUTS participants).

Using SUTS

Although using SUTS is voluntary for business taxpayers today, the state of Colorado encourages all retailers to file sales tax returns for the state, state-administered local jurisdictions, and participating home-rule cities using SUTS. But be aware: registering without remediating existing exposure can be costly.

While SUTS helps address some of the complications of tax compliance, the administrative burden is still there. Learn what online sellers must do to move their Colorado revenue online registration and begin remitting through SUTS in our Guide.

Learn

  • Benefits and limitations of SUTS
  • Vetting the issues that matter
  • Action plan, accessing SUTS, and activating Accounts
  • Key takeaways to reduce risk

Visit the Department of Revenue

More Tax News