Sales Tax Changes
Recent Legislative Changes
House Bill 19-1240
As businesses have moved toward an online sales model, sales tax collection for the state of Colorado has changed with the passage of HB19-1240 to account for that shift. Sales tax is now calculated based on the buyer’s address when the taxable product or service is delivered to the consumer. This is called destination sourcing.
HB19-1240 has a second provision that went into effect on October 1, 2019. This provision deals specifically with sales tax collection when selling through a marketplace facilitator. Information regarding this change can be found in the Department of Revenue Marketplaces Guidance publication.
Senate Bill 19-006
This bill lays the pathway toward developing and implementing an electronic sales and use tax simplification system. This system would be used by the state and local taxing jurisdictions for the acceptance of returns and processing of payments for sales and use tax. For more information, visit the General Assembly website.
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