Colorado: City of Boulder Addresses Wayfair

The City of Boulder, a home rule jurisdiction in Colorado, recently released guidance for marketplace facilitators and marketplace sellers. Legislation enacted earlier this year in Colorado imposes sales tax collection obligations on marketplace facilitators effective October 1, 2019.  Under the law, “marketplace facilitators” meeting economic nexus thresholds are required to collect Colorado state sales tax and local sales taxes for those jurisdictions (over 200) in which the local tax is administered by the Colorado Department of Revenue.  The City’s guidance, which is posted on its website, confirms that Boulder has not amended its physical presence nexus standards. However, as marketplace facilitators begin collecting state-administered taxes, they may voluntarily collect Boulder’s local sales tax and remit that tax either directly to the City or to their marketplace sellers (who will in turn remit to the City). Businesses located in Boulder that use marketplace facilitators must confirm whether the marketplace facilitator is registered and collecting tax on sales sourced to Boulder. Marketplace sellers are ultimately liable for the Boulder sales tax due on their sales. Finally, marketplace sellers with a physical presence in the City must file a Boulder sales tax return even if a marketplace facilitator is collecting and remitting the tax. For more information, please contact Steve Metz at 303-382-7177.