On Tuesday, February 9, at 2:00 PM, the Colorado Senate Finance Committee is scheduled for a hearing on SB36, which will help reform the Colorado sales tax system. ALCC will testify in support of the bill. View the fact sheet about the bill here.

ALCC supports these efforts to make sales tax compliance easier by serving on the board of directors for the Coalition to Simplify Colorado Sales Tax. The coalition understands the challenges that Colorado’s complicated sales tax system creates.

The coalition explains its goals:

The mission of the coalition is to reform Colorado’s excessively complex sales and use tax

system with multiple goals: fairness, simplicity, and predictability for business; revenue neutrality to avoid any adverse impact on local and state public services; and a competitive economic environment in Colorado that will attract employers. This coalition of businesses, trade organizations, and other interested taxpayers will drive reforms to achieve these goals.

Colorado businesses face 756 specific geographic areas with different sales tax structures, making the calculation and collection an onerous burden. And woe to those who are accused of making a mistake. Most taxpayers do not know the nuances of tax definitions until an audit.

In 2013, the Council on State Taxation (COST) rated Colorado as the fourth worst state in the country (with a grade of D) in its Scorecard on Tax Appeals & Procedural Requirements.

Business leaders who deal with Colorado’s unfair, unclear, and excessively complex sales and use tax regulations recognize the need for reform. Why? Because the status quo:

• is a significant burden on businesses
• unfairly requires businesses to pay tax assessments before they can contest them in a neutral court
• hits consumers with unexpected taxes after a purchase
• puts Colorado at a competitive disadvantage in attracting new employers

If you are interested in making your own story heard, visit simplifycosalestax.com to share your experience.