Colorado’s Sales Tax Collection Requirements Changed Significantly on June 1st, 2019

Published: January 26th, 2021

So a year and a half later, there are still problems of both over-collection and under-collection.

Problems:

1. Sales tax is a trust tax, so excess cannot be retained by the vendor and must be remitted.
   1. How should it be handled? There are options for getting the tax remitted properly or otherwise handled properly.
2. Companies may still not be in compliance for multiple reasons, but the obligation builds and does not diminish.
3. Home-rule cities are aware of these problems and both want and are entitled to their sales tax—even if tax was collected in error, unless refunded to the customer.
   • See adopted Economic Nexus for details on home-rule nexus definitions.

These are complicated issues just touched upon briefly here. We’re here to help.