Update on the Sales & Use Tax Simplification Law – SB19-006
Notes from the Task Force Meeting held Monday, July 22, 2019
Several presentations were given at the Capitol, which provided an update on the Sales & Use Simplification – SB19-006. A task force has been formed to review and provide recommendations pertaining to the new and very complex law.
SB19-006 - Electronic Sales And Use Tax Simplification System
Concerning an electronic sales and use tax simplification system, and, in connection therewith, requiring the office of information technology to conduct a sourcing method for the development of the system and requiring the department of revenue to establish the implementation of the system for the acceptance of returns and processing of payments for the sales and use tax levied by the state and any local taxing jurisdictions, and making an appropriation.
Key points from the task force meeting:
What makes Colorado different from other states?
In most states, taxes are collected by the state and disbursed to localities. Colorado is the minority and has local administration and base authority on how it does its collection which adds to the complexity. Going toward state collection would mean the local governments need to move to uniformity.
Understanding the complexities of sales and use tax with home run municipalities makes it difficult to get to one rate state but there are opportunities to make it less complex.
Three resources for customers
*The Revenue online portal just had additional capabilities added for businesses to be able to manage their account. Physical locations are required to have a sales tax license for that site. Non-physical sites are not required to go through a registration process, but they do have to be added to an account – biggest pieces of the updates were ease of use for registration as well as online maintenance.