This information is prepared as an informational service only and should not be relied upon as an official record of action taken by the Colorado General Assembly.
Sixty-first General Assembly
LLS NO. 980569.01 DLC
SENATE BILL 98116
STATE OF COLORADO
REENGROSSED
BY SENATOR Schroeder;
also REPRESENTATIVE Schauer.
FINANCE
APPROPRIATIONS
A BILL FOR AN ACT
CONCERNING THE COLLECTION OF SALES AND USE TAXES
ON PURCHASES OF TANGIBLE PERSONAL PROPERTY BY PERSONS IN COLORADO
FROM OUTOFSTATE RETAILERS, AND, IN CONNECTION THEREWITH,
SPECIFYING THE METHOD DEPENDING ON FEDERAL LEGISLATION FOR COLLECTING
AND REMITTING LOCAL TAXES WHERE SUCH SALES ARE AFFECTED BY MAIL
ORDER OR USE OF THE INTERNET.
Bill Summary
(Note: This summary applies to this bill as introduced
and does not necessarily reflect any amendments that may be subsequently
adopted.)
Authorizes the executive director of the department of revenue to enter into agreement with outofstate retailers for the collection of sales or use taxes imposed by the state or a political subdivision thereof on sales of tangible personal property by outofstate retailers affected by mail order or the internet. Specifies that provisions relating to the collection and remittance of sales and use taxes by retailers are applicable to outofstate retailers collecting sales or use taxes.
Provides alternative methods for collecting the local sales or use tax by outofstate retailers and for distributing the moneys collected depending on the method authorized by federal legislation.
Makes these collection procedures contingent on passage
of federal legislation authorizing states to enter into agreements
with outofstate retailers for the voluntary collection
of sales or use taxes by those retailers.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. Article 26 of title 39, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW PART to read:
3926401. Legislative declaration. THE GENERAL ASSEMBLY HEREBY DECLARES THAT THE PURPOSE OF THIS PART 4 IS TO FACILITATE THE COLLECTION OF SALES AND USE TAX BY OUTOFSTATE RETAILERS, ALLOW THE COLLECTION OF A STATEWIDE SINGLE RATE FEE IN LIEU OF SALES TAX BY OUTOFSTATE RETAILERS, AND IMPLEMENT FEDERAL LEGISLATION AUTHORIZING STATES TO REQUIRE THE COLLECTION OF SALES OR USE TAX BY OUTOFSTATE RETAILERS, WHICH SALES TAX OR USE TAX IS IMPOSED ON THE SALE OF TANGIBLE PERSONAL PROPERTY OR SERVICES TAXABLE UNDER THIS ARTICLE TO PERSONS IN THIS STATE AFFECTED BY SUCH RETAILERS THROUGH MAIL ORDER, USE OF THE INTERNET, OR OTHER MEANS.
3926402. Definitions. FOR PURPOSES OF THIS PART 4, UNLESS THE CONTEXT OTHERWISE REQUIRES:
(1) "LOCAL SALES OR USE TAX" MEANS A SALES OR USE TAX IMPOSED BY A POLITICAL SUBDIVISION OF THE STATE.
(2) "OUTOFSTATE RETAILER" MEANS A RETAILER SUBJECT TO THE PROVISIONS OF THIS PART 4 AS DETERMINED BY THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF REVENUE.
(3) "SALES OR USE TAX" MEANS THE STATE SALES OR USE TAX AND THE LOCAL SALES OR USE TAX.
(4) "STATE SALES OR USE TAX" MEANS THE SALES OR USE TAX IMPOSED BY THE STATE PURSUANT TO PARTS 1 AND 2 OF THIS ARTICLE.
3926403. Outofstate retailer collection of sales or use tax. (1) AN OUTOFSTATE RETAILER SUBJECT TO THE PROVISIONS OF THIS PART 4 SHALL FILE AN APPLICATION FOR A LICENSE PURSUANT TO SECTION 3926103 AND SHALL COLLECT AND REMIT THE STATE SALES OR USE TAX AND EITHER THE LOCAL SALES OR USE TAX OR THE INLIEU FEE IMPOSED ON SALES OF TANGIBLE PERSONAL PROPERTY AND SERVICES AFFECTED BY SUCH OUTOFSTATE RETAILERS THROUGH MAIL ORDER, USE OF THE INTERNET, OR OTHER MEANS THAT ARE TAXABLE UNDER THIS PART 4.
(2) (a) EXCEPT AS OTHERWISE PROVIDED IN PARAGRAPH (b) OF THIS SUBSECTION (2), THE SALES OR USE TAX REQUIRED TO BE COLLECTED BY AN OUTOFSTATE RETAILER PURSUANT TO THE PROVISIONS OF SUBSECTION (1) OF THIS SECTION SHALL BE COLLECTED AND REMITTED TO THE STATE IN THE MANNER PROVIDED IN PART 1 OF THIS ARTICLE FOR THE COLLECTION AND REMITTANCE OF SALES TAXES COLLECTED BY RETAILERS, AND ALL SUCH OUTOFSTATE RETAILERS SHALL BE SUBJECT TO THE PROVISIONS OF PART 1 OF THIS ARTICLE WHICH APPLY TO RETAILERS COLLECTING SALES TAXES EXCEPT FOR THOSE PROVISIONS THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF REVENUE DETERMINES BY RULE TO BE INAPPLICABLE TO OUTOFSTATE RETAILERS COLLECTING THE SALES OR USE TAX PURSUANT TO THE PROVISIONS OF SUBSECTION (1) OF THIS SECTION.
(b) THE PROVISIONS OF SECTIONS 3926105 AND 3926109 RELATING TO THE TIME PERIODS FOR REPORTING AND REMITTING SALES TAXES SHALL NOT BE APPLICABLE TO OUTOFSTATE RETAILERS COLLECTING AND REMITTING SALES OR USE TAX PURSUANT TO THE PROVISIONS OF SUBSECTION (1) OF THIS SECTION, AND THE TIME PERIODS FOR REPORTING AND REMITTING THE SALES OR USE TAX SHALL BE ESTABLISHED BY THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF REVENUE BY RULE.
3926404. Outofstate retailer collection of local sales or use tax set fee in lieu of actual tax collection of actual tax distribution of local sales or use taxes collected. (1) AN OUTOFSTATE RETAILER
SUBJECT TO THE PROVISIONS OF THIS PART 4 MAY COLLECT LOCAL SALES OR USE TAXES PURSUANT TO THE METHOD DESCRIBED IN SUBSECTION (2) OR (3) OF THIS SECTION, WHICHEVER IS APPLICABLE. IF THE METHODS IN BOTH SUBSECTION (2) AND SUBSECTION (3) OF THIS SECTION ARE APPLICABLE, THE OUTOFSTATE RETAILER SHALL ELECT ONE SUCH METHOD TO COLLECT LOCAL SALES OR USE TAXES.
(2) (a) AN OUTOFSTATE RETAILER REQUIRED TO COLLECT A LOCAL SALES OR USE TAX MAY COLLECT, IN LIEU OF COLLECTING THE LOCAL SALES OR USE TAX AT THE ACTUAL LOCAL SALES OR USE TAX RATE OF EACH POLITICAL SUBDIVISION IMPOSING SUCH TAX, AN INLIEU FEE AT THE INLIEU RATE ESTABLISHED IN ACCORDANCE WITH PARAGRAPH (b) OF THIS SUBSECTION (2).
(b) THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF REVENUE SHALL ESTABLISH THE INLIEU RATE IN ACCORDANCE WITH A FORMULA BASED ON FEDERAL LEGISLATION AND ADOPTED BY THE EXECUTIVE DIRECTOR BY RULE.
(c) THE INLIEU FEES REMITTED TO THE DEPARTMENT OF REVENUE PURSUANT TO THE PROVISIONS OF THIS SUBSECTION (2) SHALL BE DISTRIBUTED TO POLITICAL SUBDIVISIONS IN ACCORDANCE WITH A FORMULA BASED ON FEDERAL LEGISLATION AND ADOPTED BY THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF REVENUE BY RULE AND WITHIN THE TIME PERIOD ESTABLISHED BY THE EXECUTIVE DIRECTOR BY RULE.
(3) (a) AN OUTOFSTATE RETAILER REQUIRED TO COLLECT A LOCAL SALES OR USE TAX MAY COLLECT THE LOCAL SALES OR USE TAX AT THE ACTUAL LOCAL SALES OR USE TAX RATE OF EACH POLITICAL SUBDIVISION IMPOSING SUCH TAX AND REMIT SUCH TAXES TO THE DEPARTMENT OF REVENUE.
(b) THE LOCAL SALES AND USE TAXES REMITTED TO THE DEPARTMENT OF REVENUE PURSUANT TO THE PROVISIONS OF THIS SUBSECTION (3) SHALL BE DISTRIBUTED TO POLITICAL SUBDIVISIONS IN ACCORDANCE WITH THE ACTUAL LOCAL SALES OR USE TAX RATE OF EACH POLITICAL SUBDIVISION IMPOSING SUCH TAX AND WITHIN THE TIME PERIOD ESTABLISHED BY THE EXECUTIVE DIRECTOR BY RULE.
(4) ALL MONEYS REMITTED TO THE DEPARTMENT OF REVENUE PURSUANT TO THIS SECTION ARE "COLLECTIONS FOR ANOTHER GOVERNMENT", AS DEFINED IN SECTION 2477102 (1), C.R.S., AND ARE EXCLUDED FROM "STATE FISCAL YEAR SPENDING", AS PROVIDED IN SECTION 2477102 (17) (b) (IV), C.R.S.
3926405. Applicability of part. (1) THE PROVISIONS OF THIS PART 4 SHALL BE APPLICABLE FOLLOWING THE PASSAGE OF FEDERAL LEGISLATION AUTHORIZING STATES TO REQUIRE OUTOFSTATE RETAILERS TO COLLECT SALES OR USE TAXES IN CONNECTION WITH SALES OF TANGIBLE PERSONAL PROPERTY OR TAXABLE SERVICES AFFECTED THROUGH MAIL ORDER, USE OF THE INTERNET, OR OTHER MEANS BY SUCH RETAILER.
(2) THE PROVISIONS OF SECTION 3926404 RELATING TO THE COLLECTION OF AN INLIEU FEE OR OF THE ACTUAL LOCAL SALES OR USE TAXES SHALL NOT BE APPLICABLE UNLESS THE FEDERAL LEGISLATION INCLUDES A PROVISION AUTHORIZING SUCH FEE IN LIEU OF COLLECTING THE LOCAL SALES OR USE TAX AT THE ACTUAL LOCAL SALES OR USE TAX RATE OF EACH POLITICAL SUBDIVISION IMPOSING SUCH TAX OR AUTHORIZING COLLECTION OF THE ACTUAL LOCAL SALES OR USE TAX AT SUCH RATE.
3926406. Repeal of part. (1) THIS PART 4 IS REPEALED, EFFECTIVE DECEMBER 31 OF THE YEAR FOLLOWING THE END OF THE TWENTYFOURMONTH PERIOD BEGINNING ON THE EFFECTIVE DATE OF THE
FEDERAL LEGISLATION AUTHORIZING STATES TO REQUIRE OUTOFSTATE RETAILERS TO COLLECT SALES OR USE TAXES IN CONNECTION WITH SALES OF TANGIBLE PERSONAL PROPERTY AFFECTED THROUGH MAIL ORDER, USE OF THE INTERNET, OR OTHER MEANS BY SUCH OUTOFSTATE RETAILER.
(2) THIS PART 4 IS REPEALED, EFFECTIVE DECEMBER 31, 2008, UNLESS FEDERAL LEGISLATION AUTHORIZING STATES TO REQUIRE OUTOFSTATE RETAILERS TO COLLECT SALES OR USE TAXES IN CONNECTION WITH SALES OF TANGIBLE PERSONAL PROPERTY AFFECTED THROUGH MAIL ORDER, USE OF THE INTERNET, OR OTHER MEANS BY SUCH OUTOFSTATE RETAILER HAS BECOME LAW.
3926407. Severability. IF ANY PROVISION OF THIS PART 4 IS NOT AUTHORIZED BY THE FEDERAL LEGISLATION AUTHORIZING STATES TO ENTER INTO AGREEMENTS WITH OUTOFSTATE RETAILERS THAT VOLUNTARILY AGREE TO COLLECT SALES OR USE TAXES IN CONNECTION WITH SALES OF TANGIBLE PERSONAL PROPERTY AFFECTED THROUGH MAIL ORDER, USE OF THE INTERNET, OR OTHER MEANS BY SUCH OUTOFSTATE RETAILER, SUCH UNAUTHORIZED PROVISION SHALL NOT AFFECT OTHER PROVISIONS OF THIS PART 4 WHICH CAN BE GIVEN EFFECT PURSUANT TO THE FEDERAL LEGISLATION AND TO THIS END THE PROVISIONS OF THIS PART 4 ARE DECLARED TO BE SEVERABLE.
SECTION 2. No appropriation. The general assembly has determined that this act can be implemented within existing appropriations, and therefore no separate appropriation of state money is necessary to carry out the purposes of this act.
SECTION 3. Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.