§ 39-26-802.5 — Sales and use tax simplification - request for information

Colorado § 39-26-802.5

• Jurisdiction: Colorado
• Title 39: Taxation
• Art.: Sales and Use Tax

Text

(1)
(a) No later than June 30, 2018, the department of revenue shall issue a request for
information, in accordance with the procurement code, articles 101 to 112 of title 24,
and within the department's existing resources, for an electronic sales and use tax
simplification system that the state or any local government that levies a sales or
use tax, including home rule municipalities and counties, could choose to use that
would provide:

(I) Accurate address location information to be used by a retailer to
determine the correct taxing jurisdiction for which the retailer should collect and
remit sales or use tax;

(II) A single application process for state and local sales tax licenses;

(III) A uniform sales and use tax remittance form;

(IV) A single point of remittance for state and local sales and use tax; and

(V) A taxability or exemption matrix.

(b) The electronic sales and use tax simplification system must provide
access to the data that the state or any local government may need for purposes of
auditing taxpayers or for reconciling sales and use tax revenue projections.

(c) The request for information process must:

(I) Identify initial costs for the electronic sales and use tax simplification
system and any possible ongoing annual costs;

(II) Explain how, to the maximum extent practicable, the system could be
able to interface with all existing accounting systems used by the retailers, the
state, or local governments;

(III) Allow for various payment options to pay for the cost of the development
or implementation of the electronic sales and use tax simplification system,
including contributions by the state, local governments, or retailers, or any
combination thereof;

(IV) Anticipate that the sales and use tax base or rates of the state or any
local government that levies a sales or use tax may change over time and maintain
a history of those changes, including the effective date of such changes; and

(V) Anticipate that the jurisdictional boundaries of a local government that
levies a sales or use tax may change over time, and maintain a history of those
changes, including the effective date of such changes.

(d) A responder to the request for information shall not expect or anticipate
that the state or any local government that levies a sales or use tax and that might
use the electronic sales and use tax simplification system will, for simplification
purposes:

(I) Adjust their sales and use tax base or rate;

(II) Adopt uniform definitions; or

(III) Unify their audit authority and process in any fashion.

(2) When the request for information issuance is complete, the department
of revenue shall notify the sales and use tax simplification task force created in
section 39-26-802. The task force shall hold a meeting within ninety days of the
notification to review the information received pursuant to the request for
information and determine next steps. The task force shall invite a representative of
the department of revenue's purchasing department to help ensure that all
procurement issues are considered when the task force determines its next steps.

Legislative History

Source: L. 2018: Entire section added, (HB 18-1022), ch. 10, p. 159, � 2, effective March 1.