(1) (a) Except as otherwise provided in sub-subparagraph (A) of subparagraph (IV) of paragraph (b.5) of subsection (9) of this section, it is unlawful for any person to engage in the business of selling at retail without first having obtained a license therefor, which license shall be granted and issued by the executive director of the department of revenue and shall be in force and effect until December 31 of the year following the year in which it is issued, unless sooner revoked. Such license shall be granted or renewed only upon application stating the name and address of the person desiring such a license, the name of such business and the location, including the street number of such business, and such other facts as the executive director may require.
It is the duty of each such licensee on or before January 1 of the second year following the year in which his license is issued or renewed to obtain a renewal thereof if the licensee remains in retail business or liable to account for the tax provided in this part 1. Unless evidence is submitted to the contrary, any account for which a license has been issued which shows no retail sales activity for any period of twelve consecutive months shall not be renewed. Such inactivity shall be considered prima facie evidence that the licensee is not in the business of selling at retail.
For each license issued, a fee of sixteen dollars shall be paid, which fee shall accompany the application together with an additional fifty-dollar deposit. A further fee of sixteen dollars shall be paid for each two-year period or fraction thereof for which said license is renewed. Payment of a fee for such a license issued after June 30 shall be prorated in increments of six months. The fifty-dollar deposit shall be allowed as a credit against the Colorado sales tax to be remitted. Except for licenses issued pursuant to subsection (9)(b) of this section, all licenses issued pursuant to this section shall be renewed on a biennial basis, effective January 1, 1986.
(2) (a) If a retailer makes retail sales at two or more separate places of business in the state, a separate license for each place of business shall be required.
(b) Repealed.
(2.5) (a) If a retailer obtains a license as required in this section in good faith, the retailer provides an address that correctly indicates the location of the business, the department of revenue assigns an incorrect location code to the retailer, and the retailer in good faith collects and remits sales taxes for the local jurisdictions represented by the assigned location code, then notwithstanding this section, section 39-26-105, or section 39-26-118, the retailer is held harmless for any tax, charge, penalty, interest, or fee payable as a result of failing to collect and remit sales taxes for a local jurisdiction due to the incorrect location code.
(b) For purposes of this subsection (2.5), "location code" means the code assigned by the department of revenue to a retailer, based on the business address, when the retailer obtains a sales tax license as required in this section and represents the geographic region of the state and the local sales taxes that the retailer is required to collect and remit for such region, or means any successor system used by the department to identify the local sales taxes that a retailer is required to collect and remit based on the business location.
Each license shall be numbered and shall show the name, residence, and place andcharacter of business of the licensee and shall be posted in a conspicuous place in the place of business for which it is issued. No license shall be transferable.
The executive director of the department of revenue, after reasonable notice and afull hearing, may revoke the license of any person found by him or her to have violated any provision of this article. Any retailer who makes retail sales without securing a license therefor commits a class 3 misdemeanor and shall be punished according to section 18-1.3-501, C.R.S. Any retailer who makes retail sales without a license may also be subject to a civil penalty of fifty dollars per day to a maximum penalty of one thousand dollars. Such penalty shall be assessed by the executive director or his or her authorized agent and shall be waived or reduced if such failure to obtain such license is due to reasonable cause and not willful neglect or intent to defraud.
Any finding and order of the executive director revoking the license of any personshall be subject to review by the district court of the district where the business of the licensee is conducted, upon application of the aggrieved party. The procedure for review shall be, as nearly
as possible, the same as provided for the review of findings as provided by proceedings in the nature of certiorari.
No license shall be required for any person engaged exclusively in the business ofselling commodities which are exempt from taxation under this part 1.
It is the duty of the executive director of the department of revenue, at the time ofissuance of any new license for a retailer who makes retail sales, to notify the county treasurer of the county where the new licensee is located of the name and address of the licensee.
(a) Any person operating exclusively as a wholesaler may apply to the department of revenue for a license to engage in the business of selling at wholesale. The application shall state the name and address of the person applying for such license, the name and location of the person's business, including the street number of such business, and such other information as the executive director of the department of revenue may require.
(b) A person shall pay a fee of sixteen dollars for each license issued under this subsection (8). If the licensee remains in the wholesale business, the licensee shall renew such license on or before January 1 of the second year following the year of issuance or renewal, but nothing in this section shall be construed to empower the executive director to refuse such renewal except revocation for cause of the licensee's prior license. Payment of a fee for a license issued after June 30 of any year shall be prorated in increments of six months. All licenses issued shall be renewed on a biennial basis, effective January 1, 1986.
(9) (a) A person operating as a charitable organization, as defined in section 39-26-102 (2.5), may apply to the department of revenue for a license to engage in the business of selling at retail. The application shall state the name and address of the person applying for such license, the name and location of the person's organization, including the street number of such organization, and such other information as the executive director of the department of revenue may require.
A person conducting a singular sales event may apply to the department of revenuefor a license to engage in the business of selling at retail for a temporary period of time. The application shall state the name and address of the person applying for such license, the name and location of the person's organization, including the street number of such organization, and such other information as the executive director of the department of revenue may require.
(b.5) (I) A person engaged in retail sales at more than one special sales event in any twoyear period may apply to the department of revenue for a license to engage in selling at retail at such special sales event over a two-year period. Such special sales event license shall only apply to retail sales made by the person to whom the license is issued at such special sales events and shall not apply to sales at such person's business location or to any other sales. The application for such license shall state the name and address of the person desiring such a license and such other information as the executive director of the department of revenue may require. Except as otherwise provided in sub-subparagraph (A) of subparagraph (IV) of this paragraph (b.5), a person to whom a special sales event license has been issued shall file a separate return and payment of sales taxes for each special sales event at which retail sales are made by such person, which return shall be filed on the twentieth day of the month following the month in which such special sales event began.
Any person who organizes a special sales event shall inform each person making anyretail sales at such special sales event of the various taxes and tax rates that apply to retail sales at the special sales event and shall mail to the department within ten days of the last day of such special sales event a list of the name, address, and special sales event license number, if any, of each person making any retail sales at the special sales event.
For purposes of this paragraph (b.5), "special sales event" means an event whereretail sales are made by more than three persons at a location other than their normal business location, which event occurs no more than three times in any calendar year.
(A) Any person engaged in retail sales at a special sales event shall obtain a specialsales event license pursuant to the provisions of subparagraph (I) of this paragraph (b.5) unless the person who organizes such special sales event elects to obtain a special sales event license pursuant to sub-subparagraph (B) of this subparagraph (IV) and such person who engages in retail sales at such special sales event elects to remit such sales tax collected to the person who organized such special sales event. Any person engaged in retail sales at a special sales event who has obtained a special sales event license pursuant to the provisions of subparagraph (I) of this paragraph (b.5) may elect to remit sales tax collected at such special sales event to the person who organized such special sales event and to whom a special sales event license has been issued pursuant to sub-subparagraph (B) of this subparagraph (IV).
(B) Any person who organizes a special sales event may apply to the department of revenue for a license for retail sales made at such special sales event. Such special sales event license shall only apply to retail sales made at such special sales event organized by the person to whom the license is issued and shall not apply to any other special sales events or sales. The application for such license shall state the name and address of the person desiring such a license and such other information as the executive director of the department of revenue may require. A person to whom a special sales event license has been issued pursuant to this sub-subparagraph (B) shall file a separate return and shall make payment of sales tax collected by persons making retail sales at such special sales event who have elected to remit such sales tax collections to the person licensed pursuant to the provisions of this sub-subparagraph (B). Such return shall be filed on the twentieth day of the month following the month in which such special sales event began. In addition to the information specified in subparagraph (II) of this paragraph (b.5), any person issued a special sales event license pursuant to this sub-subparagraph (B) shall maintain, at his place of business, a list showing the name and address of each person making any retail sales at such special sales event, the amount of gross retail sales made by such person at such special sales event, and the amount of sales tax collected by such person on such retail sales which are remitted by such licensee.
A person who sells only products which are subject to city or county, but no state,sales tax may petition the department to waive the deposit established in paragraph (c) of subsection (1) of this section.
An individual having an occasional or isolated sale of tangible personal property isnot required to have a Colorado retail sales tax license. Such sales must be made from the private residences of such individuals, and the aggregate dollar amount of such sales may not exceed one thousand dollars for any one calendar year. In addition the following conditions must be met:
Neither the seller nor any member of his household may be engaged in a trade orbusiness where similar items are sold;
An annual report of casual sales must be filed with the department by every individual making such sales, and the sales tax due must be remitted at the time the Colorado income tax return of such person is due as provided in article 22 of this title, on forms provided by the director, showing in detail all such sales made during the year; and
All such returns shall be subscribed by the taxpayer or his agent and shall contain awritten declaration that they are being made under the penalties of perjury in the second degree.
In addition, when in the opinion of the executive director it is necessary for the efficient administration of this section to treat any salesman, representative, peddler, or canvasser as the agent of the vendor, distributor, supervisor, or employer under whom he operates or from whom he obtains tangible personal property sold by him or for whom he solicits business, the director may, in his discretion, treat such agent as the vendor jointly responsible with his principal, distributor, supervisor, or employer for the collection and payment over of the tax.
Except as otherwise provided in this paragraph (f), a person shall pay a fee of eightdollars for each license issued under this subsection (9); except that a person shall pay a fee of sixteen dollars for a license issued or renewed under subparagraph (I) of paragraph (b.5) of this subsection (9). Any person to whom a sales tax license has been issued pursuant to paragraph (a) of subsection (1) of this section and to whom a special sales events license has been issued or renewed pursuant to paragraph (b.5) of this subsection (9) shall pay no fee for such new or renewed special sales events license. Payment of a fee for a license issued under paragraph (b.5) of this subsection (9) after June 30 of any year shall be prorated in increments of six months.
(10) Notwithstanding the amount specified for any fee in this section, the executive director of the department of revenue by rule or as otherwise provided by law may reduce the amount of one or more of the fees if necessary pursuant to section 24-75-402 (3), C.R.S., to reduce the uncommitted reserves of the fund to which all or any portion of one or more of the fees is credited. After the uncommitted reserves of the fund are sufficiently reduced, the executive director of the department of revenue by rule or as otherwise provided by law may increase the amount of one or more of the fees as provided in section 24-75-402 (4), C.R.S.
Source: L. 35: p. 1004, § 3. CSA: C. 144, § 3. L. 37: p. 1079, § 1. CRS 53: § 138-6-3. C.R.S. 1963: § 138-5-3. L. 70: p. 391, § 6. L. 85: (1) and (4) amended and (8) and (9) added, p. 1281, § 1, effective January 1, 1986. L. 89: (9)(b.5) added and (9)(f) amended, p. 1514, § 1, effective May 21. L. 90: (1)(a), (9)(b.5)(I), and (9)(f) amended and (9)(b.5)(IV) added, p. 1726, § 15, effective May 1. L. 98: (10) added, p. 1347, § 83, effective June 1. L. 2002: (4) amended, p. 1558, § 353, effective October 1. L. 2013: (1)(c), (2), (4), and (7) amended, (HB 13-1295), ch. 314, p. 1646, § 3, effective July 1, 2014. L. 2016: (2.5) added, (SB 16-050), ch. 21, p. 48, § 1, effective March 18. L. 2019: (1)(c) and (7) amended and (2)(b) repealed, (HB 19-1240), ch. 264, p. 2494, § 2, effective June 1.
Cross references: (1) For the legislative declaration contained in the 2002 act amending subsection (4), see section 1 of chapter 318, Session Laws of Colorado 2002.
(2) For the legislative declaration in the 2013 act amending subsections (1)(c), (2), (4), and (7), see section 1 of chapter 314, Session Laws of Colorado 2013.