openaccountants Colorado Sales and Use Tax Skill v2.0
General reference only. This skill is general tax/accounting reference material for AI-assisted workflows. It has not been reviewed for any specific person's facts, documents, elections, deadlines, residency, filing status, or local procedures. Do not rely on it to file, pay, amend, or take a tax position without review by a qualified professional in the relevant jurisdiction.
Section 1 -- Quick reference
| Field | Value |
|---|---|
| Jurisdiction | Colorado |
| State rate | 2.90% (lowest in the US) |
| Maximum combined rate | ~11.2% (with home-rule city taxes) |
| Sourcing | Destination-based (state); home-rule cities may differ |
| Economic nexus | $100,000 in retail sales |
| Tax authority | Colorado Department of Revenue (CDOR) |
| Portal | https://www.colorado.gov/revenueonline |
| SST member | Yes (associate) |
| Home-rule cities | ~70+ self-administer their own sales tax |
| Skill version | 2.0 |
CRITICAL: ~70+ home-rule cities self-administer with different rates, rules, and exemptions. Denver, Aurora, Colorado Springs, Boulder are all home-rule.
Section 3 -- Transaction pattern library
| Pattern | Taxable? | Notes |
|---|---|---|
| General TPP | TAXABLE 2.9% + local | |
| Clothing | TAXABLE | No exemption |
| Grocery food (unprepared) | EXEMPT from state | Local may still tax food |
| Prepared food | TAXABLE | |
| SaaS | NOT TAXABLE | |
| Canned software (download) | TAXABLE | |
| Professional services | NOT TAXABLE | |
| Manufacturing equipment | EXEMPT | |
| Prescription drugs | EXEMPT | |
| OTC drugs | EXEMPT | |
| Resale | EXEMPT |
Section 10 -- Prohibitions
- NEVER ignore home-rule cities -- ~70+ cities self-administer with different rules.
- NEVER treat SaaS as taxable in Colorado.
- NEVER forget grocery food is exempt from STATE tax but local may still apply.
- NEVER compute any number.
Disclaimer
Informational only. Review by qualified professional required before filing.
Disclaimer
This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a CPA, EA, tax attorney, or equivalent licensed practitioner in your jurisdiction) before filing or acting upon.
The most up-to-date, verified version of this skill is maintained at openaccountants.com. Log in to access the latest version, request a professional review from a licensed accountant, and track updates as tax law changes.
Source: OpenAccountants — open tax Guides for AI, reviewed by named CPAs/CAs/EAs. Quality: source-cited draft. For always-current figures and named-accountant backing, connect the OpenAccountants MCP server (openaccountants-mcp).