COLORADO EXTENDS SALES AND USE TAX REFUND DEADLINE
What is the New Deadline?
The new sales and use tax refund application deadline for Colorado is three years after the 20th day of the month following the date of the purchase for sales tax refunds or following the date of initial storage, use or consumption in Colorado by the use tax refund applicant.
The prior deadline was three years after the date of purchase.
Specifically:
cite: 2013 CO H 1009 Enacted March 22, 2013 HOUSE BILL 13-1009 BY REPRESENTATIVE(S) DelGrosso, Gardner, Gerou, Humphrey, Labuda, McLachlan, Pabon, Salazar, Priola, Saine; also SENATOR(S) Jahn. CONCERNING THE DEADLINE FOR AN APPLICATION FOR A REFUND FOR OVERPAID STATE SALES AND USE TAX. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, 39-26-703, amend (2) (d) as follows:
39-26-703. Disputes and refunds. (2) (d) An application for refund under paragraph (c) PARAGRAPH (c) OR (c.5) of this subsection (2) shall be made within three years after the date of purchase THE APPLICABLE DEADLINE and shall be made on forms prescribed and furnished by the executive director of the department of revenue, which form shall contain, in addition to the foregoing information, such pertinent data as the executive director prescribes. THE DEADLINE FOR A SALES TAX REFUND OR A REFUND OF ANY USE TAX COLLECTED BY A VENDOR IS THREE YEARS AFTER THE TWENTIETH DAY OF THE MONTH FOLLOWING THE DATE OF PURCHASE AND THE DEADLINE FOR ANY OTHER USE TAX REFUND IS THREE YEARS AFTER THE TWENTIETH DAY OF THE MONTH FOLLOWING THE INITIAL DATE OF THE STORAGE, USE, OR CONSUMPTION IN THE STATE BY THE PERSON APPLYING FOR THE REFUND.
SECTION 2. Act subject to petition – effective date. This act takes effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly (August 7, 2013, if adjournment sine die is on May 8, 2013); except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2014 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.
Caution:
Refunds can trigger audits so the potential benefit should be weighed against the risk.
The good news is that the period available for refunds is now a bit longer. See our Refund / Claims page for more information on recovering overpaid sales and use tax.
To learn more about how we can help with these or the following issues, please Contact us today:
- Assistance with proactive minimization of prior period sales/use tax liabilities
- Help with nexus questions and issues
- Other sales and use tax related questions
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* This tip is intended to provide general information only and is not to be considered as a substitute for professional advice.