Sales and use tax simplification
- request for information
(1)Intentionally left blank —Ed.
(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.
Section 39-26-802.5 — Sales and use tax simplification - request for information,
https://leg.colorado.gov/sites/default/files/images/olls/crs2023-title-39.pdf (accessed Oct. 20, 2023).