CO HB1022

Department of Revenue must issue a request for information by June 30, 2018, for an electronic sales and use tax simplification system that state and local governments could voluntarily use.

The proposed system must provide accurate address location information for tax jurisdiction determination, a single application process for sales tax licenses, a uniform remittance form, a single remittance point, and a taxability/exemption matrix.

The request for information must identify initial and ongoing costs, explain system compatibility with existing accounting systems, allow various payment options (state, local government, or retailer contributions), and track changes to tax bases, rates, and jurisdictional boundaries over time.

Responders should not expect state or local governments to adjust tax rates, adopt uniform definitions, or unify audit processes for simplification purposes, preserving home rule municipality and county authority.

Upon completion of the request for information, the Department of Revenue must notify the Sales and Use Tax Simplification Task Force, which shall meet within 90 days to review responses and determine next steps with input from the department's purchasing representative.