HB 22-1118 Summary

• Modifies interest calculations for sales and use tax refunds filed by purchasers between July 1, 2022 and July 1, 2026, allowing interest from the claim filing date rather than the overpayment date, but only if refund is issued more than 180 days after filing.

• Establishes civil penalties for purchaser refund claims of $5,000 or more that are materially incomplete (5% penalty) or duplicative/lacking reasonable basis in law or fact (10% penalty).

• Requires the Department of Revenue to notify purchasers or preparers of incomplete claims and allow 60 days to correct deficiencies before assessing penalties, with extensions available for reasonable cause.

• Exempts protective claims filed to preserve statute of limitations rights from penalty assessment until the claim is perfected.

• Allows the Department of Revenue to waive penalties if duplicate claims were unintentional and minimal, or upon demonstration of other good cause; all provisions sunset July 1, 2030.