Effective March 1, 2010, Colorado expanded its sales/use tax to require a
non-Colorado retailer to collect Colorado sales/use tax when it is part of
a controlled group of corporations where one or more of the members has a
physical presence in Colorado. This expansion of tax nexus law has been
tried before unsuccessfully in other states, where it was ruled
unconstitutional. However, this may create a potential tax exposure
for non-Colorado businesses that are members of these controlled
groups.
