CML Model Ordinance - Economic Nexus & Marketplace Facilitators

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Background

The CML Model Ordinance on Economic Nexus and Marketplace Facilitators was developed in early 2020 by home rule municipal tax professionals, in conjunction with the business community and the Department of Revenue, as part of a sales tax simplification effort. The Model Ordinance is only for the 68 self collecting home rule municipalities in Colorado.

It has long been recognized, by governments and businesses alike, that various home rule municipalities giving the same term different meanings is a source of complexity in our tax system for businesses that operate in multiple municipalities. Use of “standardized” definitions, such as those put into the Model Ordinance, can help minimize this complexity and provide clarity to those remitting taxes to governments that self collect on the local level in Colorado. 

For those municipalities that are not going to be joining the state single point of remittance portal ("SUTS"), we ask that you not adopt the language on economic nexus and continue to move forward with voluntary compliance. The risk of a lawsuit under the United States Commerce Clause if you were to enforce economic nexus without the single point of remittance is high. Using the single point of remittance portal and uniform language will assist in lessening that risk, although not removing it entirely. Please have your attorney review the ordinance as there are certain legal risks, which are touched on in the memo. 

If you do adopt the language and/or join with the state single point of remittance, please let us know. We will be keeping track of which municipalities have done what to ease in any confusion.  

To view the state single point of remittance information, visit the Department of Revenue website. To login to the SUTS platform,

visit this website. 

 

Municipalities that have adopted the Model Ordinance as of 3/22/2023 (click link to see full ordinance)*:

Municipalities that have only adopted marketplace facilitator language (click link to see full ordinance, does not include economic nexus):

Municipalities that refer to the state definitions and therefore enforce economic nexus requirements:

  • Castle Rock

Municipalities that have agreed to join the state Sales and Use Tax System ("SUTS") as of 3/22/2023*

  • Arvada
  • Aurora
  • Avon
  • Black Hawk
  • Boulder
  • Breckenridge
  • Brighton
  • Broomfield
  • Carbondale
  • Centennial
  • Cherry Hills Village
  • Colorado Springs
  • Commerce City
  • Cortez
  • Craig
  • Crested Butte
  • Dacono
  • Denver
  • Durango
  • Edgewater
  • Englewood
  • Evans
  • Federal Heights
  • Fort Collins
  • Frisco
  • Glendale
  • Glenwood Springs
  • Golden
  • Greenwood Village
  • Gunnison
  • Gypsum
  • Lafayette
  • Lakewood
  • Lamar
  • Littleton
  • Lone Tree
  • Longmont
  • Louisville
  • Loveland
  • Montrose
  • Mountain Village
  • Mt. Crested Butte
  • Northglenn
  • Parker
  • Pueblo
  • Ridgway
  • Rifle
  • Sheridan
  • Silverthorne
  • Snowmass Village
  • Steamboat Springs
  • Timnath
  • Vail
  • Westminster
  • Wheat Ridge
  • Windsor
  • Winter Park

*Note, this is to the best of CML's knowledge.

For full and accurate information of municipalities that have joined SUTS, please visit the Department of Revenue website.

If you are a business looking to file taxes, please visit: https://colorado.munirevs.com/.

Questions? Contact Jaclyn Terwey, legislative and policy advocate.