Senate Bill 22-006 Summary

• Increases the sales tax retention rate for small retailers with annual taxable sales of $100,000 or less from 4% to 5.3% of tax collected, effective January 1, 2023 through December 31, 2023, to provide COVID-19 pandemic relief.

• Allows the Department of Revenue executive director to deduct processing costs from electronic tax payments in lieu of imposing convenience fees, with full payment amounts credited to taxpayer accounts.

• Requires the State Treasurer to deduct processing costs from state revenue when distributing payments to local governments, ensuring local governments receive full amounts owed.

• Repeals the definition of "increase in sales and use tax revenue attributable to vendor fee changes" previously established by House Bill 19-1245 and modifies housing development grant fund allocations accordingly.

• Appropriates $61,980 to the Department of Revenue for the 2022-23 fiscal year to support system updates and staffing for tax administration implementation.