Colorado Will Require Online Retailers To Collect Sales Tax

DENVER (CBS4) - The Colorado Department of Revenue announced a new policy Tuesday that will require out-of-state retailers who do business in Colorado to get a state sales tax license.

Previously, the retailer had to have a physical presence in a state to be able to collect sales tax.

"Tax collection at the point of sale eases the process for our residents and creates a level playing field for Colorado businesses, as out-of-state retailers will be required to collect state sales tax, just as in-state retailers do today" Colorado Department of Revenue Executive Director Michael Hartman said in a press release.

There will be a small-seller exception for those retailers whose in-state sales do not exceed $100,000, or 200 transactions a year.

Licenses go on sale on November 1, 2018. Retailers will not have to collect sales tax before that date.