| Summary |
Sales and Use Tax Simplification Task Force. Under current
law, the department of revenue (department) administers, collects, and
enforces the local sales or use tax that a statutory local government or a
special district imposes and, if requested, administers, collects, and
enforces any such tax that a home rule jurisdiction imposes. The statutes
that govern the administration, collection, and enforcement of these local
sales or use taxes are located in multiple titles of the Colorado Revised
Statutes. The bill revises, modernizes, and harmonizes the separate
statutes that govern the state administration of local sales or use tax by
creating new parts 2 and 3 in article 2 of title 29. In general, the bill
makes clear that the department collects, administers, and enforces a local
government sales or use tax in the same manner as it collects, administers,
and enforces the state sales tax.
The bill:
•
Requires a statutory local government, special district, or
requesting home rule jurisdiction that imposes a new sales
or use tax, makes a change to its existing sales or use tax,
or changes its geographical boundaries by ordinance,
resolution, or election to provide the department written
notice within specified deadlines and establishes the
applicability dates for such events;
•
Requires each statutory local government, special district,
and requesting home rule jurisdiction to designate one or
more liaisons to coordinate with the department regarding
the collection of its sales or use tax;
•
Establishes a dispute resolution process when the local
sales or use tax that is administered, collected, and
enforced by the department is paid erroneously to the state
or to the wrong statutory local government, special district,
or home rule jurisdiction;
•
Makes clear that a vendor who uses the department's
geographic information system (GIS) database to determine
the jurisdictions to which statutory local government,
special district, or requesting home rule jurisdiction tax is
owed is held harmless for any tax, charge, or fee liability
that would otherwise be due solely as a result of an error or
omission in the GIS database data;
•
Clarifies that a statutory local government, special district,
or requesting home rule jurisdiction may allow a retailer
that collects and remits its sales or use tax to retain a
percentage of the amount remitted to cover the vendors'
expenses in collecting and remitting the statutory local
government, special district, or requesting home rule
jurisdiction's sales or use tax, but specifies that the statutory
local government, special district, or requesting home rule
jurisdiction may not impose a limit on the amount retained;
•
Modifies the relief available under the provisions for local
dispute resolution for sales or use taxes asserted by the
local government to reflect the availability of the
department's GIS database for accurately sourcing sales;
and
•
Makes conforming amendments for the collection,
administration, enforcement, and distribution of statutory
local government, special district, and requesting home rule
jurisdiction sales or use taxes.
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