In general, for city sales and use tax purposes, physical nexus means a business has a physical location, performs services, or maintains and leases equipment within the city. If a business has physical nexus, it must obtain a business license and collect and remit applicable city taxes even if the business has a State of Colorado business license. Economic nexus means the business does not have a physical location in the city and does business in the City through third-party deliveries or incidental business transactions. The business must complete a remote seller form to create an account and collect and remit applicable city taxes, but it is not required to pay a fee for the business license. The business must be able to demonstrate that it has a State of Colorado business license. For more information on this definition, please refer to Senate Bill 22-032.
See the licensing page for more details.