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Overview of Colorado taxability based on origin

Overview

Overview of Colorado taxability based on origin

Environment

CalcTX32.DLL

Resolution

Due to its status as a home rule state, taxability in Colorado is more complicated than in many other states. Different jurisdictions (at the destination) will be taxable or not depending on where the sale is originating. The DLL is programmed to calculate the tax applicable taxes based on origin and destination.

This table should help to clarify what the DLL is doing when you pass it information. Please keep in mind that your particular tax liability may affect the taxability of your sales.
 

Sale classification State County City County Transit Local Jurisdictions
Interstate Taxable N/A Taxable Taxable Taxable
Intrastate, different county, different city Taxable Nontaxable Nontaxable Taxable Taxable
Intrastate, same county, different city Taxable Taxable Nontaxable Taxable Taxable
Intrastate, same city Taxable Taxable Taxable Taxable Taxable


This is the behavior when you pass an "S" for Sales to the DLL. Passing a "U" for Use tax or an "L" to look-up taxes based on your nexus tables will give differing results.

As a side note, the Avalara free tax calculators online will always give you the total tax for that location. This can result in an apparent discrepancy if you are comparing rates generated from the CalcTx32.dll tester to these free tools.