US Amazon collects Colorado Sales Tax

Amazon is to commence collecting Sales Tax from consumers in the state of Colorado from 1 February 2016.

The internet company will be levying Colorado’s 2.9% Sales Tax on all purchases. This should relieve in-state residents from the obligation to self-assess the tax in their annual returns – although there is some doubt to how many were actually doing so.

The new tax may still be challenged by the Direct Marketing Association, which is campaigning against the taxation of out-of-state retailers.

With the addition of Colorado, Amazon now collects Sales Tax in 28 US states.