HB20-1174 Summary

• Modifies penalty and interest calculations for delinquent sales and use tax payments to apply the greater of $15 or 10% of unpaid taxes plus one-half percent monthly interest (capped at 18% total), with interest calculated under Section 39-21-110.5 in CRS 39-26-118 and 39-26-204.

• Changes notice requirements by requiring the executive director to "provide" written notice of estimated taxes, penalties, and interest via first-class mail instead of the previous language regarding notice delivery.

• Repeals subsection (3) of CRS 39-26-202, which contained a conditional use tax rate reduction mechanism tied to state revenue thresholds and commercial truck purchases that would have applied fiscal years commencing on or after July 1, 2000.

• Applies to sales and use tax periods commencing on or after the effective date of the act, with an effective date 90 days after final adjournment of the general assembly (August 5, 2020, subject to voter approval if a referendum petition is filed).