(1) (a) All sums
of money paid by the purchaser to the retailer as taxes imposed by this article 26
shall be and remain public money, the property of the state of Colorado, in the
hands of such retailer, and the retailer shall hold the same in trust for the sole use
and benefit of the state of Colorado until paid to the executive director of the
department of revenue, and, for failure to so pay to the executive director, the
retailer shall be punished as provided by law.
(b) (I) This subsection (1) does not apply to a qualifying retailer retaining
state sales tax as allowed in section 39-26-105 (1.3).
(II) This subsection (1)(b) is repealed, effective December 31, 2026.
(2) (a) (I) If a person neglects or refuses to make a timely return in payment
of the tax or to pay or correctly account for any tax as required by this article 26,
the executive director of the department of revenue shall make an estimate, based
upon the information that may be available, of the amount of taxes due or not
accounted for or incorrectly accounted for on a return for the period for which the
taxpayer is delinquent. The executive director shall add to the estimated amount of
taxes due or not accounted for interest if applicable under section 39-21-110.5, and
a penalty equal to the greater of:
(A) The sum of fifteen dollars; or
(B) Ten percent of such unpaid, unaccounted, or incorrectly accounted
amount, plus one-half percent per month from the date when due, not exceeding
eighteen percent in the aggregate.
(II) The executive director shall provide the delinquent taxpayer written
notice of the estimated taxes, penalty, and interest by first-class mail as set forth in
section 39-21-105.5.
(b) Such estimate shall thereupon become a notice of deficiency as provided
in section 39-21-103. A hearing may be held and the executive director shall make a
final determination pursuant to that section. The taxpayer may appeal the said final
determination in the manner provided in section 39-21-105.
(3) (a) If any taxes, penalty, or interest imposed by this article and shown due
by returns filed by the taxpayer or as shown by assessments duly made as provided
in this section are not paid within five days after the same are due, the executive
director shall issue a notice, setting forth the name of the taxpayer, the amount of
the tax, penalties, and interest, the date of the accrual thereof, and that the state of
Colorado claims a first and prior lien therefor on the real and tangible personal
property of the taxpayer except as to preexisting claims or liens of a bona fide
mortgagee, pledgee, judgment creditor, or purchaser whose rights have attached
prior to the filing of the notice as provided in this section on property of the
taxpayer, other than the goods, stock in trade, and business fixtures of such
taxpayer.
(b) Said notice shall be on forms prepared by the executive director, and
shall be verified by him or his duly qualified deputy, or any duly qualified agent of
the executive director, whose duties are the collection of such tax, and may be filed
in the office of the county clerk and recorder of any county in the state in which the
taxpayer owns real or tangible personal property, and the filing of such notice shall
create such lien on such property in that county and constitute notice thereof. After
said notice has been filed, or concurrently therewith, or at any time when taxes due
are unpaid, whether such notice is filed or not, the executive director may issue a
warrant directed to any duly authorized revenue collector, or to the sheriff of any
county of the state, commanding him to levy upon, seize, and sell sufficient of the
real and personal property of the tax debtor found within his county for the
payment of the amount due, together with interest, penalties, and costs, as may be
provided by law, subject to valid preexisting claims or liens.
(4) Such revenue collector or the sheriff shall forthwith levy upon sufficient
of the property of the taxpayer, or any property used by such taxpayer in
conducting his retail business, except property made exempt from lien pursuant to
the provisions of section 39-26-117 (1)(b), and said property so levied upon shall be
sold in all respects with like effect and in the same manner as is prescribed by law
in respect to executions against property upon judgment of a court of record, and
the remedies of garnishments shall apply. The sheriff shall be entitled to such fees
in executing such warrant as are allowed by law for similar services.
(5) Any lien for taxes as shown on the records of the county clerk and
recorders as provided in this section, upon payment of all taxes, penalties, and
interest covered thereby, shall be released by the executive director in the same
manner as mortgages and judgments are released.
(6) It is the duty of any county clerk and recorder to whom such notices are
sent to file and record the same without cost or charge.
(7) (a) The executive director may also treat any such taxes, penalties, or
interest due and unpaid as a debt due the state from the vendor. In case of failure to
pay the tax or any portion thereof, or any penalty or interest thereon when due, the
executive director may receive at law the amount of such taxes, penalties, and
interest in such county or district court of the county wherein the taxpayer resides
or has his principal place of business having jurisdiction of the amounts sought to
be collected. The return of the taxpayer or the assessment made by the executive
director, as provided in this article, shall be prima facie proof of the amount due.
(b) Such actions may be actions in attachment, and writs of attachment may
be issued to the sheriff, and in any such proceeding no bond shall be required of the
executive director, nor shall any sheriff require of the executive director an
indemnifying bond for executing the writ of attachment or writ of execution upon
any judgment entered in such proceedings; and the executive director may
prosecute appeals in such cases without the necessity of providing bond therefor. It
is the duty of the attorney general or any district attorney, when requested by the
executive director, to commence action for the recovery of taxes due under this
article, and this remedy shall be in addition to all other existing remedies or
remedies provided in this article and article 21 of this title.
(8) In any action affecting the title to real estate or the ownership or rights to
possession of personal property, the state of Colorado may be made a party
defendant for the purpose of obtaining an adjudication or determination of its lien
upon the property involved therein. In any such action, service of summons upon the
executive director or any person in charge of the office of the executive director
shall be sufficient service and binding upon the state of Colorado.
(9) The executive director is authorized to waive, for good cause shown, any
penalty or interest assessed as provided in this article and article 21 of this title,
and interest imposed in excess of the rate imposed under section 39-21-110.5 shall
be deemed a penalty.