Representatives from the Coalition to Simplify Colorado Sales Tax, the Colorado Department of Revenue, MuniRevs, TTR and other panelists held a demonstration of the new Colorado Sales & Use Tax System (SUTS) on January 6th, 2020. Some questions were answered, but due to time constraints, the others will be responded to and provided to the Simplify Coalition for publication through their free subscriber option. Additional demonstrations may also be held.
The SUTS portal is designed as a one-stop place for sales tax license registration and return filing and remittance for the State and participating home-rule cities.
TTR is the State’s provider of the address verification system and taxability matrix. MuniRevs provides the backbone of for the filing and registration component of the simplification.
There are also underlying issues such as the number of participating home-rule cities. There are reportedly 44, with all but 2 of the remaining home-rule cities in active preparation for adoption. There are 70 self-collecting home-rule jurisdictions in Colorado.
Participating home-rule jurisdictions can then also adopt and begin Economic Nexus and MarketPlace Facilitator ordinances. Many have done so.
The DOR has seen a spike in registrations for the new SUTS portal. Businesses can register now.
Full DOR “acceptance” of the system is planned for April 1st, 2021. This will start the 90 clock for requiring all Colorado businesses, including those under the $100,000 small seller exemption, to collect all State -collected local jurisdictions’ sales tax under the Destination based- requirements.
The effective date planned for the change is July 1st, 2021. All business located in Colorado that are required to obtain a sales tax license will be require to collect for all state-collected local jurisdictions and report sales across the state by branch Id. This is a complicated area by itself and beyond the scope to be addressed in this tax tip. Review our prior tip for an overview of the sales tax collection requirements in Colorado.
Contact us for help with any of these or other sales and use tax issues.