ATTENTION BUSINESS OWNERS, CFOs and CONTROLLERS: UNIFORM SALES AND TAX USE DEFINITIONS
Efforts have been underway by the Colorado Municipal League to develop draft uniform sales and use tax definitions. This undertaking is in response to Senate Joint Resolution (SJR-038) passed in 2014 that “requested” and “urged” municipalities to adopt and utilize a system of uniform definitions by August 2016. In addition, it requests a mechanism for maintaining these definitions -- a key oversight in a similar undertaking that took place in the early 1990s.
For any "standard" definitions to apply to all home rule cities, the process would either require each city (Colorado has approximately 70 home rule cities currently) to adopt the standards and/or for state level legislation (which could be subject to legal challenge and/or require a state constitutional amendment). The Coalition to Simplify Colorado Sales Tax was formed to drive these reforms. As of May 2024, 69 (of 71) municipalities have adopted the Uniform Definitions.
Please contact the Coalition to Simplify Colorado Sales Tax with items that have caused unforeseen liability in tax audits and any definitions that need to be clarified as soon as possible. For additional questions, please email Jenn Penn at jenn@domestrategies.com.
Thank you.