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Bill Detail: SB19-130

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Title Sales Tax Administration
Status Senate Committee on Finance Postpone Indefinitely (02/12/2019)
Bill Subjects
  • Fiscal Policy & Taxes
House Sponsors J. Rich (R)
C. Larson (R)
Senate Sponsors R. Gardner (R)
House Committee
Senate Committee Finance
Date Introduced 02/04/2019
Description

The United States Supreme Court, on June 21, 2018, decided
South Dakota v. Wayfair, Inc., et al., overruling 2 previous United States

Supreme Court cases that stood for the rule that a state could not require
an out-of-state retailer to collect sales tax if the retailer lacked physical
presence in the state. Because of the Wayfair decision, states can require
retailers without physical presence in the state to collect sales tax on
purchases made by in-state customers so long as the sales tax system in
the state is not too burdensome for the out-of-state retailer. The bill
simplifies the state sales tax system for retailers without physical presence
by:
  • Not requiring retailers without physical presence that only
transact limited business in Colorado to collect sales tax;
  • Specifying that only the state's sales tax base, not a local
sales tax base, will apply to all sales made by retailers
without physical presence;
  • Requiring that the department of revenue (department) be
responsible for all state and local sales tax administration
and return processing, including the establishment of a
single form for returns;
  • Specifying that a central audit bureau is the sole entity
within the state that is responsible for auditing retailers
without physical presence and specifying that the central
audit bureau be developed by the department in
coordination with local taxing jurisdictions;
  • Establishing that sales are taxed based on where the goods
are delivered (destination sourcing) for all sales made by
retailers without physical presence in the state, including
local taxing jurisdictions, but specifying that destination
sourcing is not required for sales made by Colorado
retailers;
  • Requiring the department to provide information to
retailers without physical presence that indicates the
taxability of products and services along with any product
and service exemptions from sales tax in the state;
  • Requiring the department to provide retailers without
physical presence a sales tax rate database and a database
of local taxing jurisdiction boundaries;
  • Requiring the department to make available free-of-charge
software that calculates sales taxes due on each transaction
at the time the transaction is completed, files sales tax
returns, and updates to reflect any tax rate changes for the
state or any local taxing jurisdiction;
  • Allowing the department to contract with one or more
certified software providers without regard to the
procurement code to provide the software or provide access
to the software;
  • Allowing a retailer to elect to collect and remit sales tax on
its own, without using the services of a certified software
provider, or allowing a retailer to elect to use the services
of a certified software provider;
  • Specifying that, in providing the software free of charge,
the contracts negotiated between the department and the
certified software providers must provide that all or a
portion of the vendor fee may not be retained by the retailer
electing to utilize the services of a certified software
provider but will instead be retained by the certified
software provider as payment for its services;
  • Requiring the department to establish certification
procedures for persons to be approved as certified software
providers; and
  • Providing the required relief of liability for errors to
retailers without physical presence and other retailers
utilizing the software.
The bill allows local taxing jurisdictions governed by a home rule
charter to opt in by passing an ordinance, resolution, or accepting the
state's administration and distribution of its local sales tax on sales made
by retailers without physical presence that is collected and remitted by
such sellers in accordance with the bill.

Committee Reports
with Amendments
Full Text
Full Text of Bill (pdf) (most recent)
Fiscal Notes Fiscal Notes (08/01/2019) (most recent)  
Additional Bill Documents Bill Documents
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  • Past fiscal notes
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