State Department of Revenue delays new sales tax rules

DENVER — New Colorado rules for sales tax collections on purchases made over the Internet have been delayed until May 31, 2019.

Colorado Department of Revenue Executive Director Mike Hartman issued a statement today to delay the implementation of sales tax rules to implement the U.S. Supreme Court’s South Dakota v Wayfair decision:

“As part of our rulemaking process to implement sales tax rules for in-state and out-of-state retailers, we have heard from legislators and the business community, and the Department of Revenue agrees it is important for the state to take the time to get this right.

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“As such, the department is extending the automatic reprieve for Colorado businesses and out-of-state retailers to comply with the emergency rules from the current March 31, 2019, deadline to May 31, 2019. We will evaluate the need for another extension as May 31 nears. This additional time will give the state legislature an opportunity to find innovative solutions to streamline and simplify our sales tax collection laws in accordance with the wishes of the residents of Colorado.

Hartman asked that businesses that are able to collect and remit taxes on Internet sales based on where the good or service is delivered to do so in advance of the May 31 enforcement deadline.