Sales tax changes grace period and key facts

Grace period

In-state retailers:

There is a grace period through May 31, 2019, to comply with these changes to ensure retailers have sufficient time to make the required systems changes. The destination sourcing will be implemented concurrently with the out-of-state retailer sales tax changes. We selected the Dec. 1, 2018 compliance date with that in mind. We know this is a big change for some businesses. The Department will offer a grace period through May 31, 2019, to comply with these changes to ensure retailers have sufficient time to make the required systems changes. Businesses will be granted a waiver from compliance with the destination-sourcing changes automatically until then.

Out-of-state retailers:

There is a grace period through May 31, 2019, to comply with these changes to ensure retailers have sufficient time to make the required systems changes. Businesses will be granted a waiver from compliance with the destination-sourcing changes automatically until then.

However, a retailer that does not collect sales tax during this grace period must still comply with Colorado’s reporting statute: C.R.S. § 39-21-112(3.5). That statute requires non-collecting retailers to provide certain notices to individual Colorado customers and the Department regarding purchases where the retailer did not collect the tax. The reporting requirements for retailers that do not collect tax during the grace period will be strictly enforced. Non-collecting retailers seeking additional information about these reporting requirements should review the statute and Rule 39-21-112(3.5) in 1 CCR 201-1, which is available here.


Key Facts