You need a Colorado sales tax license from the Department of Revenue before you sell tangible goods at retail in Colorado. It costs $16 for each physical location, plus a $50 deposit on a first retail license, and most licenses run for two years, expiring at the end of each odd-numbered year.
Other states call this a reseller's licence, a vendor's licence or a seller's permit. Colorado's Department of Revenue (CDOR) says people sometimes call it business registration, but it's an application for a sales tax account. These figures come from CDOR's own pages and its CR 0100AP application, as of October 2026.
Do you need one?
CDOR says services aren't subject to Colorado sales tax, while tangible personal property generally is. So a bookkeeper or a web designer selling only services usually won't need a retail license, but a shop, a maker selling at markets or an online store shipping goods into Colorado will. Wholesalers have their own license type, and a business with a wholesale sales tax liability above $180 a year needs a retail license instead.
What it costs, as of October 2026
| Item | Amount | Notes from CDOR |
|---|---|---|
| License fee | $16 per physical location | Each location needs its own license |
| Retail deposit | $50 | First location only, refunded automatically once you've collected and paid $50 in state sales tax |
| Retailer's use tax license | No $16 fee and no $50 deposit | For businesses that only owe use tax |
| Single or multiple event license | No charge if you already hold a current license | Apply on form DR 0589 |
The two-year cycle, and the timing trick
Here's what most guides skip. Colorado licenses don't run from the day you apply. They all expire together at the end of each odd-numbered year. CDOR says every prior license expired on 31 December 2025 and renewed licenses run for the two-year period that began on 1 January 2026. The CR 0100AP application prorates the fee by half-year, from $16 at the start of the cycle down to $12, $8 and $4. So a business that opens late in an odd-numbered year pays less, but has to renew within weeks.
How to apply, step by step
- Check whether your city is a home-rule city. The state license only covers state and state-collected jurisdictions, so a home-rule city needs its own license too.
- Complete the CR 0100AP application, choosing retail sales, wholesaler, charitable or retailer's use.
- Apply online for the fastest result. The form says an online application gives you a license number the same day, with the paper license following in 2 to 3 weeks once fees post.
- If you apply in person or by mail, include valid proof of identification, such as a Colorado driver's licence or a US passport.
- Set a first day of sales a little earlier than opening. CDOR advises this so you can use the license to buy stock for resale tax exempt.
- Note your filing frequency, which depends on how much tax you collect.
How often you'll file
| Tax you collect | Filing frequency |
|---|---|
| $15 a month or less | Annually |
| Under $300 a month | Quarterly |
| $300 a month or more | Monthly |
| More than $75,000 a year in state sales tax | Pay by Electronic Funds Transfer |
Renewing your license
Renewal happens through Revenue Online, by EFT, or on paper with form DR 0594 at a Taxpayer Service Center. CDOR warns that making a payment alone won't renew the license: you have to log in, open the Sales Tax License/Renewal box, tick each location and submit. Before renewing, check your open locations under Business Location Rates and close any you no longer use. If you missed the 31 December 2025 deadline, your license has expired and CDOR says to renew immediately.
Once you're licensed, a resale certificate covers buying stock without paying tax, and if you're still working out which permits your business needs, start with do I need a business license.
Adding, changing or closing a location
Because every physical location needs its own license, growth means paperwork. CDOR's account pages cover adding locations to an existing account and closing an account. The CR 0100AP is also the form for an additional location or a change of ownership, which CDOR defines as an existing business changing its legal structure, not a change of shareholders or LLC members. To stop collecting in a jurisdiction where you no longer sell, rent or lease, CDOR points you to the Sales Non-Physical Site Maintenance form.
Common mistakes to avoid
- Paying the renewal fee without logging in and submitting the renewal in Revenue Online.
- Assuming the state license covers a home-rule city.
- Forgetting that a second shop or warehouse location needs its own $16 license.
- Deducting the $50 deposit on a sales tax return. CDOR says not to: it's refunded automatically.
- Licensing a services-only business that doesn't sell tangible goods.
My verdict
For most small sellers, the Colorado license is cheap: $16 and a deposit you'll get back. The real cost is missing the home-rule city license or letting the two-year renewal lapse. Put 31 December of each odd-numbered year in the diary now, and check your city before your first sale.
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Frequently asked questions
How much is a Colorado sales tax license?
As of October 2026, CDOR charges $16 per physical location, plus a $50 deposit on a first retail license that's refunded once you've collected and paid $50 in state sales tax.
Do Colorado sales tax licenses expire?
Yes. Most expire at the end of each odd-numbered year. Every prior license expired on 31 December 2025, and renewed licenses run for the two years that began on 1 January 2026.
Do I need a Colorado sales tax license to sell services?
Usually not. CDOR says services aren't subject to sales tax in Colorado, while tangible personal property generally is.
Does the state license cover home-rule cities?
No. CDOR says the license only covers state and state-collected jurisdictions, so you contact a home-rule city directly for its own license.
Is the Colorado sales tax deposit refundable?
Yes. The CR 0100AP says the $50 deposit is refunded automatically once the business has collected and paid $50 in state sales taxes, and you shouldn't deduct it on your return.
How do I renew a Colorado sales tax license?
Log in to Revenue Online, open the Sales Tax License/Renewal box, select File Return, tick each location to renew and submit, or renew by EFT or with form DR 0594 at a Taxpayer Service Center.
