Are Amazon Purchases subject to sales tax?
While Colorado's sales tax generally applies to most transactions, certain items have special treatment in many states when it comes to sales taxes. This page describes the taxability of amazon purchases in Colorado. To learn more, see a full list of taxable and tax-exempt items in Colorado.
Products on Amazon.com
In response to a 2010 Colorado law attempting to tax Amazon.com sales, HB 10-1193, Amazon.com terminated its relationship with all affiliates located in Colorado. The bill originally sought to tax sales to Colorado residents by online retailers with Colorado affiliates.
The bill was amended to remove all reference to affiliates in order to discourage Amazon from terminating Colorado based affiliates. However, Amazon still decided to terminate its Colorado affiliates.
Amazon began collecting sales tax in Colorado in 2016, and a federal court upheld the law against a legal challenge by the Direct Marketing Association. Following this ruling, policy experts predicted that the decision could lead to a unified push for national internet sales taxes.
Additionally, Amazon Prime may be subject to tax in certain local jurisdictions within Colorado.
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