Polis signs sales tax bill
DENVER — Gov. Jared Polis signed HB-1240 into law Thursday, codifying several changes to the way sales tax is collected in the state.
According to the Colorado Department of Revenue, key aspects of the bill include:
- The law clarifies economic nexus for retailers without physical presence in the state of Colorado. This codifies the requirement for out-of-state retailers, to include internet based retailers, to collect and remit sales tax for purchases made in the state of Colorado.
- The law also codifies the Department of Revenue’s destination sourcing rule for state sales tax collection. Destination sourcing refers to collecting tax based on where the good or service is received by the purchaser, versus taxing based on the physical location of the business.
- The law does provide an exception to the destination sourcing requirement for certain small businesses, until the time that the Department of Revenue can facilitate a technology solution for easily looking up sales tax rates.
- The new law also provides that businesses that sell through a marketplace facilitator to be exempt from collecting and remitting sales tax, that responsibility would fall to the marketplace.
HB-1240 goes into effect June 1.
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DENVER — Gov. Jared Polis signed HB-1240 into law Thursday, codifying several changes to the way sales tax is collected in the state.
According to the Colorado Department of Revenue, key aspects of the bill include:
- The law clarifies economic nexus for retailers without physical presence in the state of Colorado. This codifies the requirement for out-of-state retailers, to include internet based retailers, to collect and remit sales tax for purchases made in the state of Colorado.
- The law also codifies the Department of Revenue’s destination sourcing rule for state sales…
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