Colo. Code Regs. 39-26-102(3)
Current through Register Vol. 47, No. 11, June 10, 2024
Rule 39-26-102(3) - Doing Business in This StateBasis and Purpose. The statutory bases for this rule are sections 39-21-112(1), 39-26-102, and 39-26-122, C.R.S. The purpose of this rule is to clarify when a retailer is doing business in this state.
(1)General Rule. A person is doing business in this state if that person: (a) maintains directly, indirectly, or by a subsidiary any place of business in Colorado listed in section 39-26-102(3)(a), C.R.S., regardless of the amount of that person's retail sales in Colorado; or(b) solicits business in Colorado in the manner described in section 39-26-102(3)(b), C.R.S., and makes retail sales in Colorado at or exceeding the thresholds prescribed by section 39-26-102(3)(c), C.R.S.(2)Place of Business in Colorado.(a) A person who maintains a place of business in Colorado as described in paragraph (1)(a) of this rule is doing business in this state at all times the person maintains such place of business. Retailers that make sales or take orders at special events located in Colorado maintain a place of business in Colorado as described in paragraph (1)(a) of this rule at the location of the special event for the duration of the special event.(b) When a person ceases to maintain a place of business in Colorado as described in paragraph (1)(a) of this rule, that person is no longer doing business in this state unless the person satisfies the requirements of other provisions in section 39-26-102(3), C.R.S., and this rule.(3)Economic Nexus.(a) A person who solicits business in Colorado in the manner described in section 39-26-102(3)(b), C.R.S., is doing business in this state:(i) for the entire calendar year if the person made more than one hundred thousand dollars of retail sales in Colorado in the preceding calendar year; or(ii) for the remainder of the calendar year commencing on the first day of the month following the ninetieth day after the retailer's aggregate retail sales in Colorado for that calendar year exceed one hundred thousand dollars.(b)Application of Economic Nexus Rules. The following rules apply to paragraph (3)(a) of this rule. (i) All retail sales, as defined in section 39-26-102(9), C.R.S., must be used to determine if a person has satisfied the thresholds prescribed by section 39-26-102(3)(c), C.R.S., regardless of whether such retail sales are subject to Colorado sales tax. (A) Retail sales include those retail sales exempt from tax under part 7 of article 26 of title 39, C.R.S.(B) Retail sales do not include wholesale sales.(ii) The location of a sale, within or without Colorado, shall be determined in accordance with section 39-26-104(3), C.R.S.(iii) Every person soliciting business in Colorado shall maintain records sufficient to determine whether such person is doing business in this state pursuant to paragraph (3)(a) of this rule.(iv) The retail sales of a marketplace facilitator shall include: (A) all retail sales made directly by the marketplace facilitator; and(B) all retail sales facilitated in or through a marketplace owned, operated, or controlled by the marketplace facilitator.37 CR 18, September 25, 2014, effective 10/15/201438 CR 02, January 25, 2015, effective 2/14/201539 CR 10, May 25, 2016, effective 6/14/201640 CR 12, June 25, 2017, effective 7/15/201740 CR 23, December 10, 2017, effective 1/1/201841 CR 13, July 10, 2018, effective 7/30/201841 CR 14, July 25, 2018, effective 8/14/201842 CR 02, January 25, 2019, effective 12/18/2018, expires 4/17/2019.42 CR 02, January 25, 2019, effective 12/18/201842 CR 06, March 25, 2019, effective 4/14/201943 CR 04, February 25, 2020, effective 3/16/202043 CR 17, September 10, 2020, effective 9/30/202044 CR 01, January 10, 2021, effective 1/30/202144 CR 07, April 10, 2021, effective 4/30/202144 CR 08, April 25, 2021, effective 5/15/202145 CR 04, February 25, 2022, effective 3/17/202245 CR 23, December 10, 2022, effective 12/30/202246 CR 08, April 25, 2023, effective 5/15/2023