Colorado DOR Rules Taxpayer not Liable for Sales Tax

The Colorado Department of Revenue (DOR) issued a private letter ruling concluding that taxpayer is not a retailer, marketplace facilitator, consignee, auctioneer, salesperson, representative, or peddler for purposes of collecting and remitting Colorado sales tax when participating in payment processing. Taxpayer provided payment processing and fraud detection services to merchants, but did not control pricing, tax determination, fulfillment, or customer service, and had no actual or constructive possession of goods. DOR determined that taxpayer is not a retailer and therefore is not liable to collect or remit sales tax. [Colo. Dep’t of Revenue, PLR 26-003, 03/16/26].

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