Colorado Department of Revenue extends grace period for new sales tax rules Email
Written by ALCC   
Tuesday, December 11, 2018 04:00 AM

cash registerBusinesses received a short reprieve from complicated, burdensome sales tax rules that went into effect December 1. The new rules, which require that businesses both in and out of Colorado must assess and collect sales tax based on the Colorado buyer’s address, will not be enforced until May 31, 2019, to allow businesses more time to comply.

Currently, there are more than 683 possible sales tax rates throughout the state. Determining the correct sales tax for each sale takes considerable effort, even with state databases offered to retailers. Mistakes are likely, and small businesses often lack the resources to calculate the taxes quickly and efficiently for online customers.  

After hearing the concerns of business owners, Colorado Department of Revenue Executive Director Mike Hartman issued a statement regarding the enforcement delay:

“As part of our rulemaking process to implement sales tax rules for in-state and out-of-state retailers, we have heard from legislators and the business community, and the Department of Revenue agrees it is important for the state to take the time to get this right.

“As such, the Department is extending the automatic reprieve for Colorado businesses and out-of-state retailers to comply with the emergency rules from the current March 31, 2019 deadline to May 31, 2019. We will evaluate the need for another extension as May 31 nears. This additional time will give the state legislature an opportunity to find innovative solutions to streamline and simplify our sales tax collection laws in accordance with the wishes of the residents of Colorado."

Read the full statement.  

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