How to Get a Sales Tax License in Colorado: Steps, Fees, and City Rules

To get a sales tax license in Colorado, file Form CR 0100 with the Department of Revenue, pay a $16 license fee, and post a refundable $50 state sales tax deposit. The quickest route is the state’s MyBizColorado portal at mybiz.colorado.gov, which issues your account number the same day you apply; the physical license arrives by mail in two to three weeks.¹

Do You Actually Need One

Colorado law makes it illegal to sell at retail without first obtaining a license from the Department of Revenue.² The question for you is whether your business has a close enough connection to the state — what the law calls “nexus” — to trigger the requirement.

You have physical nexus if your business maintains a storefront, warehouse, office, or other place of business in Colorado. A remote employee working from a Colorado home can also create physical nexus for an out-of-state company. If you have no physical presence but sell into Colorado from elsewhere, economic nexus kicks in once your gross sales to Colorado customers exceed $100,000 in a calendar year. From there, you have to obtain a license by the first day of the month following the ninetieth day after your sales crossed the threshold.²

Pick the Right License Type

Most businesses need the standard retail license. If you make both retail and wholesale sales, the retail license covers both; you do not need a separate wholesale license on top of it.¹

Other options exist for narrower situations:

A wholesale license, for businesses that only purchase items for resale and need an account to collect tax when reselling them.
A single special event license, for temporary sales at a one-time event with three or more vendors. It is free if you already hold a standard retail license.
A multiple special event license, which covers multiple events over a two-year period and is also free for standard license holders.
A mobile vendor license, for sellers operating from a truck or vehicle. You license your main office location and can add jurisdiction sites at no extra charge.

Information to Gather Before You Apply

The application is Form CR 0100, the Colorado Sales Tax and Withholding Account Application.⁴ Have the following ready before you start, whether you file online or on paper:

Your tax identification number. Sole proprietors use a Social Security Number; every other business type needs a Federal Employer Identification Number (FEIN) from the IRS.
Your legal business name as registered with the IRS, plus any “Doing Business As” (DBA) trade name you use publicly.
The reason you are filing — new business, additional location on an existing account, or change in ownership.
Your physical business location and a mailing address for tax correspondence.
Full legal names and Social Security Numbers for every officer, partner, or member with a stake in the business.
Your NAICS code, which identifies your business activity.

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If you sell items subject to specific excise taxes, such as lead-acid batteries or tires, you disclose that in a supplemental section of the form. You can download the PDF from the Department of Revenue website to review every field before you submit.

How to Submit the Application

Colorado accepts the CR 0100 four ways, and the time to get licensed varies sharply by method:

Online through MyBizColorado at mybiz.colorado.gov. You get your Colorado account number the same day; the paper license arrives by mail in two to three weeks.
In person at a Taxpayer Service Center. Bring the completed CR 0100, a valid photo ID, and a check or money order for the fees. You walk out with the license.
By mail, sending the CR 0100, a copy of your photo ID, and payment to the Department of Revenue. Allow four to six weeks.
By email, which is available for withholding-only accounts. Sales tax licenses have to go through one of the other three methods.

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What It Costs

A new retail sales tax license is $16, plus a $50 refundable deposit. The $50 is not a fee; it is a prepayment of sales tax. Once your business has collected and remitted $50 in state sales tax, the deposit is automatically credited back. The deposit only applies to your first location. Organizations designated as 501(c)(3) charities are exempt from the deposit entirely.²

Apply after June 30 and the $16 fee is prorated in six-month increments. Each physical location where you make retail sales requires its own separate license, so a second storefront means a second $16 fee, though only the first location requires the $50 deposit.²

You May Still Need a Separate City License

A state license is not the end of the story. Dozens of Colorado “home-rule” cities administer their own sales tax with their own rules, exemptions, and license requirements. If you sell in Denver, Aurora, Boulder, or another home-rule city, you have to register directly with that city on top of your state license.⁶

The Department of Revenue collects local sales tax on behalf of most counties and some cities, so your state return automatically covers those jurisdictions. For the rest, Colorado’s Sales and Use Tax System (SUTS) lets you file and remit sales tax for the state, state-collected locals, and many participating home-rule cities through one portal. SUTS also includes a geographic lookup that identifies every taxing jurisdiction for a specific address so you can determine the combined rate your customers owe.⁷ Not every home-rule city participates in SUTS, so check the DR 1002 publication on the Department of Revenue website for the current list.

After the License Arrives

Your license has to be displayed in a visible spot at your place of business.⁸ It is not permanent either. Most Colorado sales tax licenses expire on December 31 of each odd-numbered year, running on a two-year cycle,⁹ and the renewal fee is $16 per location for each two-year period.¹⁰

The Department will assign your filing schedule based on how much tax you collect: monthly if your liability is $600 or more per month (due by the 20th of the following month), quarterly if it is under $600, and annually if it is $15 or less per month (due January 20). File every period even if you made zero sales. If you skip a filing, the Department will file one for you using an estimated amount, and that estimate becomes due and payable until you submit the real return.¹¹

1
Department of Revenue – Taxation. Standard Retail License
2
Justia Law. Colorado Revised Statutes Title 39 Section 39-26-103 – Licenses – Fee – Revocation
3
Department of Revenue – Taxation. Other License Types
4
Department of Revenue – Taxation. CR 0100 – Colorado Sales Tax and Withholding Account Application
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Department of Revenue – Taxation. CR 0100 Colorado Sales Tax and Withholding Account Application
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Department of Revenue – Taxation. Local Government Sales Tax
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Department of Revenue – Taxation. Sales and Use Tax System (SUTS)
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Department of Revenue – Taxation. Sales Tax Guide
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Department of Revenue – Taxation. How to Apply for a Colorado Sales Tax License
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Department of Revenue – Taxation. Renew Your Sales Tax License
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Department of Revenue – Taxation. Sales Tax Filing Information