Economic Nexus for 72 more jurisdictions like unto states? Yes, it’s quite probable for most if not all of Colorado’s 72 self-collecting home-rule jurisdictions like Denver, Colorado Springs, Aurora, Fort Collins, Lakewood, Thornton, Arvada, Westminster, and more.
The Colorado Municipal League(CML) has shared a draft Model Ordinance on Economic Nexus for their home-rule municipality members to adopt. The CML has requested feedback on the Draft from the Colorado State Chamber of Commerce(CACI) Tax Council members.
What does this mean for businesses? I believe the the time is close at hand when we will see a unified effort for adoption of Economic Nexus from home-rule municipalities in Colorado. I recommend being prepared for Economic Nexus among the 72 self-collecting home-rule cities in Colorado.
From CACI…
Background:
In 2019, the Colorado General Assembly adopted and the Governor signed into law Senate Bill 19-06, which allowed for the creation of a single point of remittance portal (“SUTS”) which allows online retailers who meet a minimum dollar amount to remit sales taxes to the State, state-collected municipalities, and self-collecting home rule municipalities who opt-in. Before signing onto the portal, however, self-collecting home rule municipalities are required to adopt language allowing for the collection of sales tax from online retailers that aligns with the State adopted language in SB 19-06. A team of municipal attorneys and finance directors that represent cities across the State have drafted the model ordinance.
Tax Council Members are encouraged to provide any suggestions/feedback regarding this draft ordinance to Loren Furman at lfurman@cochamber.com by May 13th.
Colorado is a very difficult state for handling sales and use tax compliance properly.
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