It started here in Colorado on November 1st. It’s not a federal law. It’s due to a Supreme Court ruling, which now gives the states the ability to enforce collection of state sales tax on internet sales. Which, by the way, you were always technically supposed to pay sales tax on all your online purchases. But that was not easy to enforce, because it was up to the consumer to pay the tax to their state, and no one did it.

“The U.S. Supreme Court on Thursday overturned the 1992 decision in Quill Corp. v. North Dakota, which exempted online retailers from having to collect tax on orders placed by residents of states where retailers did not have a physical presence.”

I for one am happy to see this FINALLY happen. Levels the playing field for everyone. You should support local businesses. I buy my games from Game Exchange, even before the tax collection rules went into place. The states that haven’t caught on soon will. Of course, those of you that live in states with no sales tax, enjoy........

There is software and companies out there that can help businesses with this tax collection process.

Where I live the tax is 4%, but in Denver city limits yes 7.5%

The Colorado (CO) state sales tax rate is currently 2.9%. Depending on local municipalities, the total tax rate can be as high as 11.2%. Colorado is a “home rule” state. Local-level tax rates in the state of Colorado are quite complex compared against local-level tax rates in other states.

It’s based on the county you live in and the city boundaries. For example the city of Denver vs the city of Littleton. I happen to live in unincorporated Douglas county so ours is lower because we don’t have a local city government to support. So my sales tax is based upon the state at 2.9% plus the county sales tax. Then there are other add-on’s. Such as RTD(our public transit system), if where you live is serviced by RTD there is an additional sales tax added on. Etc.

For online sales you pay the tax based upon point of delivery, where you have the item shipped to....typically your home. Vs a brick and mortar purchase. If I drive to Best Buy in Denver I can expect to pay a lot more sales tax because of where they are located.

For example Game Exchange is located in Denver. If I drive there and pickup my game I pay 7.5% sales tax. If I have them deliver it to my home I pay 4% sales tax.

Correction: Apparently Denver’s total sales tax rate is now 8.31%

Deleted: crossed the line from facts to politics

Yep yep, I get it. I deleted my post due to crossing the line from fact to politics. I appreciate all points of view.

Did you know that you are supposed to pay sales tax on private party sales too? But again, hard to enforce.
The only place I see it enforced is on private party vehicle sales, because when you register the vehicle you show a bill of sale that states the sale price and the DMV collects the sales tax. But, people cheat that system by asking the seller to lie about the sales price on the bill of sale.

Everyone be like IM NOT PAYING MORE.....10 minutes later OHHHHHH LOOK AT THAT SHINEY BOX OF LIGHTS! I WANT AN LE. TAKE MY MONEY

No, you would need to live in one of those 5 states

That’s because the Democrats have ruined California with insanely high income and property tax, why should we all subsidize that? The new limits make sense.

Oh and mortgage interested deduction didn’t go away. You can still claim that if you itemize, and just like before it’s not capped.