If you’re selling goods or taxable services in the state, having a valid Colorado sales tax permit isn’t optional—it’s required by law. Skipping it can lead to fines, penalties, or even an audit that derails your business. But here’s the good news: getting compliant doesn’t have to be confusing.
This article walks you through everything—what kind of permit you need, how to apply, local licensing traps to watch out for, and what happens if you get it wrong. And if you want to skip the headaches altogether, Hands Off Sales Tax (HOST) is your go-to solution for seamless sales tax registration, filings, and compliance across Colorado.
Which Colorado Sales Tax License Do You Need—and Why It Matters
Before you make your first taxable sale in Colorado, you’re legally required to obtain a Colorado sales tax permit under CRS §39‑26‑101. The state mandates that any person or entity selling tangible personal property or taxable services at retail must be licensed before collecting or remitting sales tax.
But here’s where it gets tricky: Colorado doesn’t offer a one-size-fits-all license. The type of permit you need depends on what you sell, where you sell it, and who your buyers are. Here’s a breakdown:
1. Retail Sales Tax License (Standard)
For businesses selling directly to end consumers—whether in a physical store, online, or via mobile units.
- Cost: $16 for a two-year term
- Deposit: $50 refundable after $50 in taxes have been remitted
- Includes: State and local tax collection authorization
2. Wholesaler License
For businesses that only sell to resellers or other retailers—not the end user.
- Cost: $16 for two years
- Deposit: None
- Note: You cannot collect sales tax under this license
3. Special Event License
For vendors at temporary events like festivals, fairs, or markets.
- Cost: $8 per event or $16 for a two-year multi-event license
- Waiver: Free if you already hold a retail license
4. Retailer’s Use Tax License (Out-of-State Sellers)
For remote sellers delivering into Colorado. You’ll remit use tax rather than sales tax.
- Cost: Free
Special Cases: Mobile & Marketplace Sellers
If you operate across city lines or use platforms like Amazon, Etsy, or Walmart Marketplace, additional local licenses or tax collection duties may apply—especially in Colorado’s home-rule cities that handle their own tax registration and enforcement.
Step-by-Step Registration Process
Registering for a Colorado sales tax permit is a straightforward process, but it’s important to prepare your information ahead of time to avoid delays. Here’s how to get started:
1. Gather Required Information
Before you apply, have the following on hand:
- Employer Identification Number (EIN) or SSN for sole proprietors
- NAICS Code for your business activity (lookup tool here)
- Legal structure of the business (LLC, sole proprietorship, etc.)
- Colorado business location(s) and start date of operations
2. Apply for the License
You can file the CR 0100 Sales Tax Withholding Application in one of two ways:
- Online through Colorado’s Revenue Online portal (fastest): https://tax.colorado.gov/revenue-online
- By mailing Form CR 0100: Downloadable from https://tax.colorado.gov/sites/tax/files/documents/CR0100_2025.pdf
3. Wait for Confirmation
- Online applications: license is typically issued within 24 hours
- Paper applications: allow 2–3 weeks for processing (source)
4. Set Up EFT Payment
If your sales tax liability exceeds $75,000 annually, you must remit taxes via Electronic Funds Transfer (EFT).
Local Licensing & Home-Rule Cities
In Colorado, securing your state sales tax permit isn’t always enough. While the Colorado Department of Revenue administers sales tax for most municipalities, there are 63 home-rule cities that collect and manage their own local taxes independently. This means businesses may need to register separately with these cities, file local returns, and pay city-specific rates.
What Are Home-Rule Cities?
Under Colorado law, home-rule municipalities can create and enforce their own tax codes. According to the Colorado Secretary of State, these cities operate outside of the state’s sales tax collection system.
Some of the most notable home-rule cities that require their own sales tax licenses and filings include:
- Denver – Requires a separate sales tax license and return filing.
- Colorado Springs – Offers a business license portal where sellers must register.
Failing to register in home-rule jurisdictions can lead to missed tax obligations and costly penalties—so review where your business operates and comply accordingly.
Filing, Payment & Recordkeeping
Getting a Colorado sales tax license is only the beginning. Once registered, businesses must stay compliant by filing returns, making payments on time, and keeping detailed records. The state enforces strict rules on filing frequency, payment deadlines, and retention obligations.
Filing Frequency
Your filing frequency depends on how much sales tax you collect:
- Monthly: If you collect $300 or more per month
- Quarterly: If you collect between $15 and $300 per month
- Annually: If you collect less than $15 per month
Deadlines & Payments
Returns are due on the 20th of the month following the close of your reporting period. If your tax liability exceeds certain thresholds, electronic funds transfer (EFT) is mandatory.
Recordkeeping Requirements
Colorado requires businesses to keep all sales tax records for at least four years, though seven years is best practice—especially if you operate across multiple jurisdictions or expect audits. Always retain copies of returns, payment confirmations, and exemption certificates.
Expert Help with Colorado Sales Tax Compliance—Powered by HOST
Managing sales tax compliance in Colorado can get complicated fast—from registering for the right license type to dealing with home-rule city filings, due dates, and exemption tracking. That’s where Hands Off Sales Tax (HOST) steps in as your reliable compliance partner.
HOST doesn’t just help you get your Colorado sales tax permit—they provide end-to-end support that keeps your business on track and audit-ready:
- Registration & Licensing Support
HOST assists with multi-jurisdiction registrations, including Colorado state licenses and home-rule city applications. - Filing & Remittance Management
They handle monthly, quarterly, or annual filing schedules based on your business size and sales activity. - Sales Tax Notice Handling
HOST monitors for state or local notices, helping resolve issues before they escalate. - Audit Defense Preparation
With organized records and filing accuracy, HOST ensures your documentation is compliant if the DOR comes knocking. - Exemption Certificate Management
HOST helps generate resale certificates to minimize liability.
Whether you’re a local retailer, a remote seller, or an event-based merchant, HOST removes the guesswork from Colorado sales tax rules so you can focus on growth.
Don’t Let Sales Tax Licensing Slow You Down
Getting your Colorado sales tax permit is more than checking a box—it’s your gateway to legally operating and growing in the state. But between license types, local requirements, and filing rules, even simple mistakes can trigger penalties or audits.
That’s why businesses across the U.S. trust HOST for sales tax compliance. From registration to filings, HOST streamlines the entire process so you stay focused on your business—not paperwork.
Ready to simplify your compliance? Contact HOST for a consultation and make Colorado sales tax one less thing to worry about.
