Clash of the tax and retail titans

Since I counsel a lot of online businesses, including online retailers, I am often asked about the sales tax implications of online sales. Generally speaking, the answer is pretty easy: If you are a Colorado business and sell goods to individuals residing in Colorado, then you have to collect Colorado sales tax and the appropriate county and city taxes from the consumers and remit the sales tax to the appropriate taxing authority.

Technically speaking, Colorado consumers are supposed to report and calculate the value of goods purchased from out-of-state business and pay the state government the appropriate tax. Of course, no one does this, and the state has no way of knowing how much each taxpayer purchases and how much tax is owed.

Read more at ColoradoBiz Magazine

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