Guidance for Remote Sellers

Effective October 1, 2021, the City of Boulder adopted Ordinance No 8457 establishing an economic nexus standard for remote sellers. This ordinance was developed by home rule municipal tax professionals, in conjunction with the business community and the Colorado Department of Revenue, as part of a sales tax simplification effort.

Economic Nexus requires remote sellers with no physical nexus in Boulder to collect and remit sales tax on retail sales of tangible personal property, commodities, and/or services. Economic nexus levels the playing field between brick-and-mortar retail stores and remote sellers and shifts the responsibility of remitting tax on online sales from the purchasers of goods and services to the retailer.

Ordinance 8457 expanded the definition of engaged in business in the city to include:

• Retailers or vendors in the state of Colorado making more than one delivery into the city within a twelve-month period; or

• Making retail sales sufficient to meet the definitional requirements of economic nexus.

With the term economic nexus defined as:

The connection between the city and a person not having a physical nexus in the State of Colorado, which connection is established when the person or marketplace facilitator makes retail sales into the city, and:

(a)In the previous calendar year, the person, which includes a marketplace facilitator, has made retail sales into the state exceeding the amount specified in C.R.S. § 39-26-102(3)(c), as amended; or

(b)In the current calendar year, 90 days has passed following the month in which the person, which includes a marketplace facilitator, has made retail sales into the state exceeding the amount specified in C.R.S. § 39-26-102(3)(c), as amended.

More generally, economic nexus applies to any retailer that does not maintain a physical location in Colorado and makes retail sales of tangible personal property, commodities, and/or services over $100,000 annually within the State of Colorado.

Any business may apply for a business license with the City of Boulder and establish an account on Boulder Online Tax. There is no cost to apply for a business license if a business does not have a physical location in Boulder. The benefits of filing on Boulder Online Tax include:

• Multiple payment options including ACH Debit (free), Credit Card (fee applies), Check (mailed with a printed voucher).

• Businesses can manage user access & web logons, contact Boulder Sales Tax staff, and print/download copies of returns online.

• Businesses can easily amend returns and request refunds online.

• City of Boulder staff is here to assist customers with Boulder Online Tax questions Monday – Friday, 8am to 5pm via email or phone. Voicemails and emails are typically returned within one business day.

Alternatively, the City of Boulder has signed on to the state of Colorado’s SUTS portal for remote sellers.

Please note: businesses with physical presence in Boulder are encouraged to use Boulder Online Tax as they will not be able to remit special tax types through SUTS (e.g. food service tax for eating places, marijuana taxes, admissions/accommodations tax, etc.) Additionally, all business license maintenance (renewals, change in location, closing accounts) must be completed on Boulder Online Tax.

Effective November 6, 2020, the City of Boulder adopted Ordinance 8425 amending the definition of Retailer or Vendor to include the terms “Marketplace”, “Marketplace Facilitator”, “Marketplace Seller” and “Multichannel Seller.” The result of these amendments resulted in new sales tax collection responsibilities for marketplace facilitators with physical nexus in Boulder or who were voluntarily licensed in Boulder. This responsibility applies to sales made in or through a marketplace facilitator’s marketplace. Ordinance 8457 extended the requirement to Marketplace Facilitators without physical nexus in Boulder.

Please refer to the Marketplace Facilitator Guide for more information.

For questions about the SUTS portal, please contact the Colorado Department of Revenue:

• Phone: Mon-Fri 8-4:30 - (720) 795-7759

• Email: DOR_TaxpayerService@state.co.us

For all other questions, please contact City of Boulder staff at:

• Phone: Mon-Fri 8-5 - (303) 441-3051

• Email: salestax@bouldercolorado.gov