HB19-1256 Summary

• Requires mandatory electronic filing of returns and electronic funds transfers for payment of multiple state taxes including income, sales, use, excise, fuel, and marijuana taxes for taxable periods beginning January 1, 2020 or when the system is established, whichever is later.

• Mandates phased implementation over at least three years beginning with large taxpayers, with thresholds to be determined by the executive director, and allows additional time for small taxpayers to comply.

• Imposes penalties of $50 or 5% of proper tax amount (whichever is greater) for failure to file electronically or pay by electronic funds transfer, with authority for the executive director to waive penalties for good cause.

• Allows taxpayers to apply for annual waivers from electronic filing requirements if they lack computer or internet access or can demonstrate undue hardship, with one-year renewal available.

• Consolidates and repeals existing scattered provisions regarding electronic filing and payment requirements from multiple revenue statutes into one comprehensive section.