SB19-130: Sales Tax Administration Summary

• Simplifies sales tax collection by retailers without physical presence in Colorado by exempting small sellers (under $100,000 annual sales or fewer than 200 transactions) from collection requirements.

• Establishes "destination sourcing" (tax based on where goods are delivered) for retailers without physical presence, while allowing Colorado retailers with physical presence to use origin sourcing (tax at business location).

• Requires the Department of Revenue to provide free tax calculation software, maintain sales tax rate and local jurisdiction boundary databases, and establish a central audit bureau as the sole entity authorized to audit remote sellers.

• Creates certification procedures for software providers and provides liability relief for retailers, software providers, and the Department for errors in tax collection made in good faith, including during 90-day notice periods for rate changes.

• Allows home rule charter municipalities to opt in to state administration of local sales taxes on remote sales by passing an ordinance or resolution, with the state handling all collection and monthly distributions.