C.R.S. Section 39-26-802
Sales and use tax simplification task force

  • creation

(1)(a)(I) Notwithstanding section 2-3-303.3, there is created the sales and use tax simplification task force, referred to in this part 8 as the “task force”. The task force shall meet as necessary during any legislative session or any interim between legislative sessions to study the necessary components of a simplified sales and use tax system for both the state and local governments, including home rule municipalities and counties.

(II)

Repealed.

(b)

Intentionally left blank —Ed.

(I)

The task force shall study sales and use tax simplification between the state and local governments, including home rule municipalities, to identify opportunities and challenges within existing fiscal frameworks to adopt “feasible solutions”, which are solutions that are practical, revenue-neutral, and do not require constitutional amendments or voter approval.

(II)

The task force shall consider whether there are feasible solutions for:

(A)

Making audits of retailers more uniform for all state and local taxing jurisdictions in the state;

(B)

The utilization of a single sales and use tax return for state and local taxing jurisdictions as a part of the sales and use tax simplification system described in Senate Bill 19-006, enacted in 2019;

(C)

Streamlining the requirements for state and local sales tax licenses, use tax licenses, and business licenses used for purposes of collecting sales and use taxes;

(D)

Making uniform and possibly increasing the filing threshold amount for monthly sales tax filings between the state and local governments, including home rule municipalities;

(E)

Simplifying use taxes levied by the state and local governments, including home rule municipalities;

(F)

Streamlining and possibly making uniform the state and local sales tax exemptions for medical devices, including reviewing best practices among states in this area;

(G)

Simplifying the process by which state and local sales and use taxes are collected for the purchase of a motor vehicle;

(H)

Simplifying the issuance of local building permits and the levying of use tax on building materials and on mobile and small mobile construction equipment;

(I)

Simplifying the process to claim and administer the various state sales and use tax exemptions; and

(J)

Simplifying the sales tax collection and remittance requirements for nonprofit organizations.

(III)

The task force shall:

(A)

Seek regular updates from the office of information technology and the department of revenue regarding the development of the electronic sales and use tax simplification system described in Senate Bill 19-006, enacted in 2019;

(B)

Once the electronic sales and use tax simplification system described in Senate Bill 19-006, enacted in 2019, is online, monitor and encourage participation by businesses and home rule municipalities;

(C)

Seek regular updates from the office of information technology and the department of revenue regarding the purchase and development of a geographic information system (GIS) database to maintain jurisdictional boundaries of sales tax districts and to calculate appropriate sales and use tax rates for individual addresses for which the department of revenue received an appropriation in Senate Bill 19-006, enacted in 2019;

(D)

Review the way in which special districts and specially assessed sales taxes add to the complexity of the state’s sales and use tax structure, including, at minimum, the regional transportation district, the scientific and cultural facilities district, any local improvement districts, any regional transportation authority, any multi-jurisdictional housing authority, and any health services district, and any mass transportation system tax, public safety improvement tax, metropolitan district tax, local marketing district tax, and county lodging district tax;

(E)

Review and compare the state’s sales and use tax definitions with the standard sales tax definitions developed and adopted by local taxing jurisdictions pursuant to Senate Joint Resolution 14-038, enacted in 2014, to determine if any simplification might be achieved between the two sets of definitions;

(F)

Examine the effects of the changes to the vendor fee implemented pursuant to House Bill 19-1245, enacted in 2019;

(G)

Review any evaluations of sales and use tax expenditures prepared by the office of the state auditor that are completed pursuant to section 39-21-305, unless a tax commission, legislative interim study committee, or other type of legislative committee, task force, or study group is formed to review such evaluations. If a tax commission, legislative interim study committee, or other type of legislative committee, task force, or study group is formed to review such evaluations, the task force shall seek regular updates from such commission or committee regarding any decisions that such commission or committee might make related to any sales or use tax expenditure evaluated by the office of the state auditor.

(H)

Explore options for eliminating a department of revenue requirement for taxpayers to use branch ID reporting;

(I)

Determine whether the state should adopt a sales tax exemption for an isolated or occasional sale of a business in an asset sale;

(J)

Regularly review the business impact of the destination sourcing rules set forth in section 39-26-104 (3), including the thresholds that trigger the requirement for destination sourcing; and

(K)

Analyze or review any other relevant topic related to the simplification of sales and use tax administration in the state.

(2)

The task force consists of:

(a)

Two members from the house of representatives, one appointed by the speaker of the house of representatives and one appointed by the minority leader of the house of representatives;

(b)

Two members from the senate, one appointed by the president of the senate and one appointed by the minority leader of the senate;

(c)

A representative of the department of revenue who is well versed in sales and use tax collection and distribution issues and who is knowledgeable of the policy statements and resolutions regarding sales and use tax collection and uniformity of the multistate tax commission, of which Colorado is a member;

(d)

A representative of the Colorado municipal league;

(e)

A representative of Colorado counties, incorporated;

(f)

A member of a statewide association of small businesses that is addressing the simplification of sales and use tax collection, appointed by the governor;

(g)

A member of the statewide chamber of commerce, appointed by the governor;

(h)

A state and local sales and use tax law practitioner who is not employed by a home rule or statutory city or city and county, appointed by the governor;

(i)

A member with state and local sales and use tax accounting experience who is not employed by a home rule or statutory city or city and county, appointed by the governor; and

(j)

One manager, mayor, council-person, finance officer, or tax administrator of a home rule or statutory city or city and county, appointed by the Colorado municipal league from each of its four population membership categories, according to its bylaws.

(2.5)

Intentionally left blank —Ed.

(a)

All appointments described in subsection (2) of this section must be made no later than June 1, 2021, and each June 1 thereafter. Members of the task force serve at the pleasure of the applicable appointing authority or until the member no longer serves in the position for which he or she was appointed to the task force, at which time a vacancy is deemed to exist on the task force. If a vacancy arises on the task force, the appropriate appointing authority shall appoint a replacement member that meets the requirements set forth in subsection (2) of this section for the vacant position.

(b)

Starting in 2021, the task force shall elect a chair and a vice-chair at the first meeting held on or before July 16, 2021. The chair and vice-chair appointments must alternate between a member from the house of representatives and a member from the senate with the first chair being from the senate and the first vice-chair being from the house of representatives. The person serving as chair, or a member of the same house if such person is no longer a member thereof, shall serve as vice-chair during the next legislative session, and the person serving as vice-chair, or a member of the same house if such person is no longer a member thereof, shall serve as chair during the next legislative session.

(3)

Starting in 2021, the task force shall meet at least eight times, with the first meeting occurring no later than July 16, 2021. Task force meetings shall be open to the public and the task force shall solicit the testimony of the members of the public.

(4)

Intentionally left blank —Ed.

(a)

The members of the task force appointed pursuant to subsections (2)(a) and (2)(b) of this section are entitled to receive compensation and reimbursement of expenses as provided in section 2-2-326.

(b)

The legislative council staff and the office of legislative legal services shall be available to assist the task force in carrying out its duties.

(5)

No later than November 1, 2021, and no later than each November 1 thereafter, the task force shall make a report to the legislative council created in section 2-3-301 that may or may not include recommendations for legislation.

Source: Section 39-26-802 — Sales and use tax simplification task force - creation, https://leg.­colorado.­gov/sites/default/files/images/olls/crs2023-title-39.­pdf (accessed Oct. 20, 2023).

39‑26‑101
Short title
39‑26‑102
Definitions
39‑26‑102.5
Change of references from “Internal Revenue Code of 1954” to “Internal Revenue Code of 1986”
39‑26‑103
Licenses - fee - revocation - definition
39‑26‑103.5
Qualified purchaser - direct payment permit number - qualifications
39‑26‑104
Property and services taxed - definitions
39‑26‑105
Vendor liable for tax - definitions - repeal
39‑26‑105.2
Remittance of tax - GIS - vendor held harmless - requirements of GIS database - rules - definition
39‑26‑105.3
Remittance of tax - electronic database - vendor held harmless - repeal
39‑26‑105.4
Remittance of tax - determination of address - dealer held harmless
39‑26‑105.5
Remittance of sales taxes - electronic funds transfers
39‑26‑106
Schedule of sales tax
39‑26‑107
Rules and regulations
39‑26‑108
Tax cannot be absorbed
39‑26‑109
Reports of vendor
39‑26‑111
Credit sales
39‑26‑112
Excess tax - remittance - repeal
39‑26‑113
Collection of sales tax - motor vehicles - off-highway vehicles - exemption - process for motor vehicles sold at auction - exception - definition
39‑26‑113.5
Refund of state sales taxes for vehicles used in interstate commerce - fund
39‑26‑115
Deficiency due to negligence
39‑26‑116
Record of sales
39‑26‑117
Tax lien - exemption from lien
39‑26‑118
Recovery of taxes, penalty, and interest - repeal
39‑26‑119
License and tax additional
39‑26‑120
False or fraudulent return, statement - penalty
39‑26‑121
Penalty
39‑26‑122
Administration
39‑26‑122.5
Collection of sales tax - enhanced efficiencies - intergovernmental agreements with local governments - legislative declaration
39‑26‑123
Receipts - disposition - transfers of general fund surplus - sales tax holding fund - creation - definitions
39‑26‑124
Applicability to banks
39‑26‑125
Limitations
39‑26‑126
Legislative finding as to revenues for old age pension fund
39‑26‑127
Legislation modifying the state sales tax base - no impact on local government sales tax bases - no expansion of local authority to levy sales tax
39‑26‑128
Uniform sales and use tax base - definition
39‑26‑129
Refund for property used in rural broadband service - legislative declaration - definitions
39‑26‑201
Definitions
39‑26‑202
Authorization of tax
39‑26‑204
Periodic return - collection
39‑26‑204.5
Remittance of tax - electronic database - retailer held harmless - repeal
39‑26‑204.6
Remittance of tax - determination of address - motor vehicle dealer held harmless
39‑26‑205
Tax constitutes lien - exemption from lien
39‑26‑206
Failure to make return
39‑26‑207
Penalty interest on unpaid tax
39‑26‑208
Collection of use tax - motor vehicles
39‑26‑209
Rules and regulations
39‑26‑210
Limitations
39‑26‑211
Applicability to banks
39‑26‑212
Legislation modifying the state use tax base - no impact on local government use tax bases - no expansion of local authority to levy use tax
39‑26‑401
Definitions
39‑26‑402
Refund of state sales and use tax for biotechnology - application requirements and procedures
39‑26‑701
Definitions
39‑26‑702
Department of revenue - rules
39‑26‑703
Disputes and refunds - repeal
39‑26‑704
Miscellaneous sales tax exemptions - governmental entities - hotel residents - schools - exchange of property
39‑26‑705
Miscellaneous use tax exemptions - printers ink and newsprint - manufactured goods
39‑26‑706
Miscellaneous sales and use tax exemptions - internet access - refractory materials - precious metal bullion and coins
39‑26‑707
Food, meals, beverages, and packaging - definitions
39‑26‑708
Construction and building materials - legislative declaration - definition
39‑26‑709
Machinery and machine tools - definitions
39‑26‑710
Railroads - construction and building materials - tangible personal property - work equipment - rolling stock
39‑26‑711
Aircraft - tangible personal property
39‑26‑711.5
Aircraft - use outside state
39‑26‑711.8
Aircraft - use outside state - on-demand air carriers
39‑26‑711.9
Historic aircraft on loan for public display - definition
39‑26‑712
Trailers and trucks
39‑26‑713
Tangible personal property
39‑26‑714
Vending machines - definitions
39‑26‑715
Fuel and oil - definitions
39‑26‑716
Agriculture and livestock - special fuels - definitions
39‑26‑717
Drugs and medical and therapeutic devices - legislative declaration - definitions - repeal
39‑26‑718
Charitable organizations - association or organization of parents and teachers of public school students
39‑26‑719
Motor vehicles
39‑26‑720
Bingo equipment
39‑26‑721
Manufactured homes and tiny homes
39‑26‑723
Colorado wood products - repeal
39‑26‑724
Components used to produce energy from a renewable energy source - definitions
39‑26‑725
Sales related to a school - definitions
39‑26‑726
Medical marijuana - debilitating conditions and ability to purchase
39‑26‑727
Tribal exemption - motor vehicles - partial interest - definition - legislative declaration
39‑26‑728
Property for use in space flight - definitions
39‑26‑729
Retail sales of marijuana
39‑26‑730
Sales and use tax exemption forms - simplification - legislative declaration
39‑26‑731
Eligible decarbonizing building materials - tax preference performance statement - legislative declaration - definition - repeal
39‑26‑732
Heat pump systems - tax preference performance statement - legislative declaration - definitions - repeal
39‑26‑733
Residential energy storage systems - tax preference performance statement - legislative declaration - definition - repeal
39‑26‑734
Rebuilding from declared wildfire disaster - tax preference performance statement - legislative declaration - definitions - repeal
39‑26‑801
Legislative declaration
39‑26‑802
Sales and use tax simplification task force - creation
39‑26‑802.5
Sales and use tax simplification - request for information
39‑26‑802.7
Electronic sales and use tax simplification system - sourcing method - implementation - legislative intent - definitions
39‑26‑802.9
Retailers without physical presence or with only incidental physical presence in local taxing jurisdictions - streamlined application process and no fee for local general business license - legislative declaration - definitions
39‑26‑803
Gifts, grants, or donations
39‑26‑804
Repeal of part
Green check means up to date. Up to date

Current through Fall 2024

§ 39-26-802’s source at colorado​.gov