Not Collecting Sales Tax in Colorado? January 31 Deadline Fast Approaching!
by AccountingWeb on
The January 31, 2011 notification to purchasers requirement is fast approaching. All retailers that meet the following requirements are required to notify purchasers by January 31, 2011 that they are required to self-assess use tax and pay it to Colorado:
- Do not have nexus in Colorado
- Do not collect sales tax on sales to Colorado purchasers
- Have $100,000 or more in Colorado sales
- State that the retailer does not collect Colorado sales or use tax.
- State that the purchase is not exempt from Colorado sales or use tax merely because it is made over the Internet or by other remote means.
- State that State of Colorado requires Colorado purchasers to file a sales or use tax return at the end of the year for all taxable Colorado purchases that were not taxed, and pay tax on those purchases
- The notice must be easily seen and located near the total price.
- Be sent by first class mail to the last known address by January 31 of the following year in an envelope prominently marked with the words “Important Tax Document Enclosed.”
- Summarize the date(s) of purchase(s), a description of the item(s) and the dollar amount(s) of the purchase(s).
- State that the State of Colorado requires that the consumer file a sales or use tax return at the end of every year and pay the tax on Colorado purchases that did not include tax. Details of how to file this return may be found on the Web site http://www.taxcolorado.com/ 
- Indicate that the retailer is required by law to provide the Colorado Department of Revenue the total dollar amount for of purchases made by Colorado consumers.