C.R.S. Section 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

(1)

The general assembly hereby finds and declares that:

(a)

Licensing of retailers that are subject to payment of sales and use taxes in one or more local taxing jurisdictions but either do not have physical presence in or have only incidental physical presence in those local taxing jurisdictions is a matter of statewide concern;

(b)

The state’s electronic tax administration infrastructure, including the electronic sales and use tax simplification system created and brought online pursuant to section 39-26-802.7 and commonly known as SUTS, can be used to make the imposition, collection, and administration of local sales and use taxes collected by retailers that either do not have physical presence or have only incidental physical presence in the local taxing jurisdictions imposing the taxes simpler and more efficient so long as:

(I)

Each local taxing jurisdiction is required to grant a general business license, free of charge, to any retailer that has a state standard retail license and either does not have physical presence or has only incidental physical presence within the local taxing jurisdiction so long as the local taxing jurisdiction has not previously revoked the retailer’s general business license due to the retailer’s failure to comply with the local taxing jurisdiction’s requirements for holding a general business license; and

(II)

Sufficient information about any such retailer is collected when the retailer applies for a state standard retail license to address any local taxing jurisdiction concerns, including but not limited to concerns relating to administrative efficiency, retailer compliance, and collection of sales and use tax revenue;

(c)

Because it is important to ensure that the concerns of local taxing jurisdictions are addressed, it is necessary and appropriate to require the department of revenue to consult with local taxing jurisdictions when modifying application requirements for the state standard retail license as required by this section; and

(d)

It is appropriate to eliminate the cost of a general business license to a retailer that has a state standard retail license and either does not have physical presence in a local taxing jurisdiction or has only incidental physical presence within the local taxing jurisdiction by prohibiting a local taxing jurisdiction from charging a fee for a general business license to such a retailer until such time as the local taxing jurisdiction is required to allow any such retailer to make retail sales within the local taxing jurisdiction without applying separately to the local taxing jurisdiction for a general business license.

(2)

As used in this section, unless the context otherwise requires:

(a)

“Department” means the department of revenue.

(b)

“General business license” means a license issued by a local taxing jurisdiction that a retailer must obtain to legally make retail sales in the local taxing jurisdiction regardless of whether the license is called a business license, a sales and use tax license, or by another name. An occupational license or any other license required to engage in a business activity other than making retail sales of goods is not a general business license.

(c)

“Incidental physical presence” means, with respect to a local taxing jurisdiction, physical presence as described in subsection (2)(e)(I)(B), (2)(e)(I)(C), or (2)(e)(I)(E) of this section, or any combination of said subsections, within the local taxing jurisdiction that occurs infrequently and is not regularly scheduled within the ordinary course of an individual or entity’s business activities.

(d)

“Local taxing jurisdiction” has the meaning set forth in section 39-26-802.7 (1)(b).

(e)

Intentionally left blank —Ed.

(I)

“Physical presence” means, with respect to a local taxing jurisdiction, performing or providing services or selling, leasing, renting, delivering, or installing tangible personal property for storage, use, or consumption within the local taxing jurisdiction. Physical presence includes any of the following activities:

(A)

Directly or indirectly by a subsidiary maintaining a building, store, office, salesroom, warehouse, or other place of business within the local jurisdiction;

(B)

Sending one or more employees, agents, or commissioned salespersons into the local jurisdiction to solicit business, to install, assemble, repair, service, or assist in the use of its products, or for demonstration or other reasons;

(C)

Maintaining one or more employees, agents, or commissioned salespersons on duty at a location within the local taxing jurisdiction;

(D)

Owning, leasing, renting, or otherwise exerting control over real or personal property sales within the local taxing jurisdiction;

(E)

Engaging in activities within the taxing jurisdiction that are subject to other business, fire, zoning, or other regulations of the local jurisdiction; or

(F)

Being subject to taxable privileges other than the requirement to collect sales tax imposed by the local taxing jurisdiction.

(II)

Incidental presence by employees, agents, or commissioned salespersons within a local taxing jurisdiction when not otherwise engaged in the activities set forth in subsection (2)(e)(I) of this section does not constitute physical presence.

(f)

“State standard retail license” means a license issued under section 39-26-103 that authorizes a retailer to make retail sales in the state.

(g)

“SUTS” means the electronic sales and use tax simplification system created and brought online pursuant to section 39-26-802.7.

(3)

Intentionally left blank —Ed.

(a)

In order to enable the streamlining of the imposition, collection, and administration of sales and use taxes imposed by local taxing jurisdictions on retail sales made by retailers that have a state standard retail license and either do not have physical presence within a local taxing jurisdiction or have only incidental physical presence within a local taxing jurisdiction by streamlining the application process for and eliminating the expense of general business licenses for such retailers, the department of revenue shall require sufficient information to be collected from such a retailer, when the retailer applies for or renews a state standard retail business license through SUTS or by other means or at any other time to the extent necessary, and made available to local taxing jurisdictions to ensure that concerns of local taxing jurisdictions, including but not limited to concerns relating to administrative efficiency, retailer compliance, and collection of sales and use tax revenue, are addressed. In determining what information to collect and how to make the information collected available to local taxing jurisdictions as required by this subsection (3)(a), the department shall consult with local taxing jurisdictions, including but not limited to large, medium, and small home rule and nonhome rule municipalities and large, medium, and small counties. The department shall also consult with retailers to address any reasonable concerns they may have.

(b)

The department shall accomplish the tasks set forth in subsection (3)(a) of this section expeditiously so that no later than July 1, 2023, and sooner if feasible, a retailer that has a state standard retail license and either does not have physical presence within a local taxing jurisdiction or has only incidental physical presence within a local taxing jurisdiction can make retail sales within the local taxing jurisdiction without having to apply separately to the local taxing jurisdiction for a general business license.

(4)

Intentionally left blank —Ed.

(a)

On and after July 1, 2022, a local taxing jurisdiction shall not charge a fee for a general business license to a retailer that has a state standard retail license, makes retail sales within the local taxing jurisdiction, and either does not have physical presence in the local taxing jurisdiction or has only incidental physical presence within the local taxing jurisdiction.

(b)

On and after July 1, 2023, a local taxing jurisdiction shall not require a retailer that has a state standard retail license, makes retail sales within the local taxing jurisdiction, and either does not have physical presence in the local taxing jurisdiction to or has only incidental physical presence within the local taxing jurisdiction to apply separately to the local taxing jurisdiction for a general business license. If the local taxing jurisdiction requires a general business license, it shall automatically issue a general business license at no charge to such a retailer using the information provided by the department pursuant to subsection (3) of this section; except that a local taxing jurisdiction is not required to issue a general business license to a retailer if the local taxing jurisdiction has previously revoked a general business license held by the retailer for a violation of its local code. In addition, nothing in this subsection (4)(b) prohibits a local taxing jurisdiction from suspending or revoking a general business license for a violation of its local code.

Source: Section 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, 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

§ 39-26-802.9’s source at colorado​.gov