Online retailers selling in Colorado got a reprieve from the state’s messy sales-tax collection rules until at least May 31.
This is the second time the state Revenue Department has extended the deadline, this time to allow the legislature to attempt to simplify and streamline the process for collecting and remitting online sales taxes.
“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,” Department of Revenue chief Mike Hartman wrote in a statement.
Colorado businesses and those selling to Colorado customers were supposed to begin collecting sales taxes on Dec. 1. The state set a new deadline of March 31, after the U.S. Supreme Court ruled in South Dakota v. Wayfair. In that case, the court found a state can require retailers to collect and remit sales taxes, regardless of whether they have a physical presence there, so long as the state does not put an excessive burden on interstate businesses.
Colorado’s sales-tax system, with its patchwork of tax-collecting districts, is famously troublesome.
Tony Gagliardi, Colorado state director for the National Federation of Independent Business, small businesses “will not breathe a big sigh of relief until they see what lies ahead in the coming months.
“Rightfully, the department has decided to slow down, but not before causing a collective anxiety in a state that already has a mess of a sales tax structure with more than 700 taxing entities,” he wrote in a statement.
He added: “Simplifying and harmonizing its sales tax structure is Colorado’s biggest public policy challenge by far.”
The Revenue Department still is encouraging businesses that have the ability to collect and remit taxes collected on online purchases to do so, even in advance of the May 31 enforcement deadline.
More from The Colorado Sun
- Federal investigation launched into former Westminster cop sentenced to 90 days in jail for unlawful sexual contact
- Bureau of Land Management to move headquarters to Grand Junction, Cory Gardner says
- Sunriser: Avalanche debris & climate change / Exercise vs. addiction / National popular vote repeal / Western Conservative Summit dispatches / more
- Acres of destruction left by Colorado’s historic avalanche season are also delivering climate change evidence
- How exercise is helping extreme athletes and others in Colorado battle addiction
- A question to repeal national popular vote compact in Colorado is poised for 2020 ballot
- Aurora police investigating U.S. flag’s removal during protest at immigration detention facility
- Opinion: I learned a valuable life lesson at the barbershop. It takes courage to speak out against hatred.
- Nicolais: How a prison gang-rape led to a glimmer of hope
- Opinion: Lakewood voters don’t deserve praise; they deserve condemnation