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By Eliminating Sales Tax Vendor Fee, State Lawmakers Turn Small Business Owners into ‘Unpaid Tax Collectors’

By Eliminating Sales Tax Vendor Fee, State Lawmakers Turn Small Business Owners into ‘Unpaid Tax Collectors’

August 25, 2025

NFIB Colorado fought to protect the state’s sales tax vendor fee.

DENVER (Aug. 25, 2025) – Following the state legislature’s decision to eliminate the state sales tax vendor fee, NFIB State Director Michael Smith issued a statement:

“For years, our state has given a small allowance to retailers – small business owners – for their time and effort to collect sales tax on behalf of the state. This has been a long-standing practice that has supported Main Street, and overall, cost the state very little. Despite this, state lawmakers just voted to eliminate it, making every small business owner in Colorado an unpaid tax collector. Not only will Main Street Coloradans have to contend with more red-tape, an ongoing worker shortage, and higher risk of litigation, but now, they have to collect taxes on behalf of the state without any compensation. This is deeply unfortunate. We thank the bipartisan group of lawmakers who worked to preserve this important pro-small business provision, and will work to get it restored in future legislative sessions.”

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