Reform Colorado's excessively complex sales and use tax system
Business leaders who deal with Colorado’s unfair, unclear, and excessively complex sales and use tax regulations recognize the need for reform.
Quick Facts
In light of the work of our coalition and the legislation we’ve passed, Colorado has climbed 18 spots – from 39th to 21st of states since 2017 – on the sales tax component in the Tax Foundation’s 2026 State Tax
Competitiveness Index.Colorado has a patchwork of 756 specific geographic areas with different sales tax rates and bases created by 294 taxing jurisdictions with overlapping boundaries.
As of Sept. 2026, 69 of 71 Colorado municipalities adopted the Uniform Definitions, many at the urging of small business owners just like you!
Simplify Colorado has achieved great success in passing legislation to simplify Colorado’s sales and use tax system and ease compliance for businesses. Simplify Coalition has passed 17 bills and 2 resolutions since our coalition’s formation in 2014. Click here to learn more.
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What We’re About
In 2013, the Council on State Taxation rated Colorado as the fourth worst state in the country with a grade of “D” thanks to a patchwork of 756 specific geographic areas with different sales tax rates and bases. It is hard to imagine the situation getting worse, but the threat to small businesses is looming thanks to recent court rulings.
Working with Legislative Simplification Sales & Use Tax Task Force, Simplify Colorado’s Sales Tax coalition is dedicated to simplifying the sales and use tax to develop a path to a better tax climate which is critical to the ongoing strength and success of our economy.
About the Issues
The mission of the coalition is to reform Colorado’s excessively complex sales and use tax system with multiple goals:
Fairness
Simplicity
Predictability for business
Revenue neutrality to avoid any adverse impact on local and state public services
Create a competitive economic environment in Colorado that will attract employers
Real Stories
Coloradans like you struggle every day to comply with the state’s overly complicated sales and use tax system. Read more about the headache and financial hardship the sales tax system puts on local Colorado business owners.