CO HB1163

Allows retailers to advertise that they will absorb or pay sales or use tax on purchases of tangible personal property or services, ending the previous prohibition on such advertising.

Requires retailers who absorb tax to separately state both the purchase price and the full tax amount on receipts and advertising materials.

Mandates that retailers who absorb any portion of the tax must remit the full tax amount to the Department of Revenue with the return covering the period when the sale was completed.

Clarifies that retailers absorbing tax are not required to collect it from customers but remain responsible for remitting the full tax to the state.

Applies to filing periods beginning on or after January 1, 2022, subject to voter approval if a referendum petition is filed within 90 days of final adjournment.