2024 Legislation
In 2024, the coalition continued to support the work of the Task Force, including:
SB24-023: Concerning the requirement that local taxing jurisdictions hold harmless vendors who rely on erroneous data in certain electronic systems related to sales and use tax that are managed by the department of revenue. Learn More
SB24-024: Concerning the standardization of local lodging tax and aligning reporting requirements related to remittance of a local lodging tax with other local taxes. Learn More
SB24-025: Concerning local government sales and use taxes administered by the department of revenue, and, in connection therewith, revising, modernizing, and harmonizing various state statues relating to the state-administration of local sales and use tax into one uniform statute.
HB24-1041: Concerning the streamlining of processes for filing sales and use tax returns. Learn More
HB24-1050: Concerning the simplification of processes related to taxes imposed by local governments, including local lodging and building permit-related sales or use taxes. Learn More
In 2023, the coalition continued to support the work of the Task Force, which realized significant accomplishments with the following:
Supporting the passage of SB23-143 because it simplifies and clarifies the retail delivery fee collection and remittance process for retailers and provides flexibility for businesses wishing to pay the fee directly. SB23-143 also creates a small business exemption for small businesses with retails sales under a half million.
Learn more: Coalition Fact Sheet for SB23-143
SB23-143
HB23-1017
HB23-1017 was introduced and passed with the Task Force’s recommendation, known as the SUTS enhancement bill, adding $6.5 million in additional revenue to the SUTS system for enhancements. The measure requires modifications that improve ease of use for businesses remitting sales tax and municipalities system improvements, and it also requires the Department of Revenue to increase the awareness and participation of SUTS.
Learn more: Coalition Fact Sheet for HB23-1017
SJR23-004
Successful passage of SJR23-004, which urges local governments to work together through the Colorado Municipal League and business partners to create uniformity in the collection of sales and use tax for construction materials among municipalities and improves Colorado's business environment.
Learn more: Coalition Fact Sheet for SJR23-004
In 2022, the General Assembly’s Sales and Use Tax Simplification Task Force was extended to continue to address challenges in the code, and the coalition led the effort to pass two bills with near unanimous support, including:
HB22-1027
SB22-032
HB22-1027 gives retailers who make less than $100,000 in annual sales/more time to comply with Colorado’s forthcoming destination-based system for calculating and remitting sales tax.
SB22-032 simplifies sales and use tax administration for businesses by prohibiting local taxing jurisdictions from charging non-physically present retailers business license fees in order to remit minuscule sales taxes due.
HB 20-1022 Sales And Use Tax Simplification Task Force
HB 20-1022 continues the sales and use tax simplification task force for 5 years, modifies the task force's duties, and removes the requirement that the task force undergo an evaluation by the department of regulatory agencies prior to the task force's repeal.
HB 20-1022
HB 20-1023
HB 20-1023 State Address Data For Sales And Use Tax Collection
HB 20-1023:
Signed by Governor Polis on March 11, 2020
Establishes a hold harmless provision for vendors who use the state's geographic information system database (GIS database) to determine the jurisdictions to which sales or use tax is owed and to calculate appropriate sales or use tax rates for individual addresses;
Requires the department of revenue to notify vendors when the GIS database is online, tested, and verified in writing by the department of revenue to be operational, supported, and available for use;
Specifies that the notification to vendors may be provided in any way that the department deems appropriate and must be accomplished within existing resources;
Requires the department of revenue to ensure that the GIS database data is at least 95% accurate based on a statistically valid sample of addresses from the database, or based on another acceptable method of proving accuracy;
Requires the executive director of the department of revenue to promulgate rules for the administration and use of the GIS database;
Specifies that the statutory section regarding certified address location databases used for collecting and remitting sales and use tax is repealed 90 days after the date that the revisor of statutes is notified by the department of revenue that a geographic information system that meets the defined scope of work set forth in the request for solicitation is online, tested, and verified in writing by the department of revenue to be operational, supported, and available for use; and
Requires the department of revenue to notify the revisor of statutes no later than 15 days after such a system is online, tested, and verified in writing by the department of revenue to be operational, supported, and available for use.
SB 19-006 Electronic Sales And Use Tax Simplification System
SB 19-006 requires the Department of Revenue, within existing resources, to conduct a sourcing method for the development of an electronic sales and use tax simplification system and include the input of stakeholders regarding the scope of work.
SB 19-006
HB 18-1022
HB 18-1022 Department of Revenue Issue Sales Tax Request for Information
HB18-1022 requires the Department of Revenue to issue a request for information (RFI) for an electronic sales and use tax simplification system which would provide administrative simplification to the state and local sales and use tax system. This proposal is recommended by the Legislative Sales and Use Tax Simplification Task Force that was created by HB16-1216, and is intended to simplify certain administrative details of the state and local sales and use tax system which could be piloted on an elective basis.
HB 17-1216
HB 17-1216 Sales and Use Tax Simplification Task Force
House Bill 1216 creates the sales and use tax simplification task force (task force) made up of legislative members and state and local sales and use tax experts. The bill requires the task force to study sales and use tax simplification between the state and local governments, and in particular between the state and home rule jurisdictions. The task force is:
Authorized to seek, accept, and expend gifts, grants, or donations from private or public sources in order to meet its goals;
Subject to sunset review in 3 years; and
Required to make an annual report to the legislative council that may or may not include recommendations for legislation.
SB 16-036
SB 16-036 Tax Assessment Appeal Reform: Removing an Unfair Barrier to Due Process
Senate Bill 036 reforms an antiquated system and protect taxpayer due process by providing access to District Court without paying an assessment or bond until a decision from the court is rendered. Regular court costs would apply like in civil matters, and taxpayers would remain responsible for their legal fees. The bill covers all local and state taxes—except for property tax.
This bill specifically allows a taxpayer to either:
Make a deposit prior to appealing to District Court, which will stop interest from accruing while the court is considering the matter; or
Appeal to District Court without having to make the deposit or a bond; however, interest will continue to accrue during that time.