Colorado SB22-032 – Concerning simplification of local sales and use tax compliance and administration for retailers that make retail sales in local taxing jurisdictions where they have limited physical presence, and, in connection therewith, making an appropriation.
4/4/22: SB22-032 passed the House this morning unanimously, 65-0. The bill now proceeds to the Governor for action.
3/7/22: SB22-32 Simplify Local Sales & Use Tax Administration Simplify Local Sales & Use Tax Administration | Colorado General Assembly passed the Senate this morning on third and final vote by a vote of 31-0 with 4 excused. The bill will now proceed to the House of Representatives.
The SB22-032 states it’s a matter of State-wide concern so it applies to the 70 self-collecting home-rule jurisdictions in Colorado as well.
Key issue – Licensing when having little or no physical presence in local state-collected or home-rule jurisdictions:
In order to enable the streamlining of the imposition, collection, and administration of sales and use taxes imposed by local taxing jurisdictions on retail sales made by retailers that have a state standard retail license and either do not have physical presence in a local taxing jurisdiction or have only incidental physical presence in a local taxing jurisdiction through the streamlining of application requirements for and elimination of fees for local general business licenses…
On and after July 1, 2022, a local taxing jurisdiction is prohibited from charging a fee for a local general business license to a retailer that has a state standard retail license, makes retail sales within the local taxing jurisdiction, and either does not have physical presence within the local taxing jurisdiction or has only incidental physical presence within the local taxing jurisdiction.
On and after July 1, 2023, a local taxing jurisdiction is prohibited from requiring such a retailer to apply separately to the local taxing jurisdiction for a general business license. A local taxing jurisdiction must automatically issue a general business license to such a retailer unless the local taxing jurisdiction has previously revoked a general business license held by the retailer for a violation of its local code.
See the Bill details and status here: https://leg.colorado.gov/bills/sb22-032
Thank you to the Bill Sponsors, to the Colorado State Chamber of Commerce (CACI), to the Sales and Use Tax Simplification Task Force. to the Coalition to Simplify Colorado Sales Tax and to Jenn Penn of Dome Strategies for her work with the Legislators and for the updates!
Sales Tax Colorado, LLC comments:
Handling sales and use tax in Colorado properly is complicated. With the June 1st 2019 Changes from the Colorado Department of Revenue requiring state-wide collection of all state-collected local jurisdictions’ sales tax and subsequent adoption of Economic Nexus and/or Marketplace Facilitator ordinances by many of the home-rule jurisdictions licensing became a much bigger issue. SB22-032 seeks to minimize the licensing requirements burden and fees.