Amazon is collecting some local sales tax in Colorado

Amazon is collecting some local sales tax in Colorado

Online retail giant began collecting and remitting Colorado state sales tax on February 1, 2016. When that news broke, it was unclear whether or not Amazon would also collect local sales taxes in the Centennial State. Many localities in Colorado administer their own local sales taxes, making sales tax compliance extremely complex for businesses (like Amazon) that sell throughout the state.

Amazon has reportedly signed agreements with several municipalities to collect local taxes on purchases from Amazon and several of its subsidiaries. The company began collecting Denver city and county taxes on February 1 and Aurora sales tax on February 8. It also collects local tax in several other localities, including Arvada, Centennial, Thorton, Westminster, and, most recently, Boulder and Longmont. Amazon representatives have not commented on local sales taxes.

The additional sales tax revenue will surely be appreciated, and Longmont Finance Director Jim Golden believes the tax will be beneficial to the city. However, he says, “It’s hard to know what the impact will be going forward.”

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