CO SB023

Vendors that use the Geospatial Information System (GIS) database to determine tax rates and local taxing jurisdictions are held harmless from audit liability for errors or omissions in the database data.

To qualify for hold harmless protection, vendors must collect and retain documentation demonstrating proper use of and reliance on GIS database data, and must query the database using complete and accurate addresses.

The Department of Revenue must update GIS database data, including jurisdictional boundaries and tax rates, within 30 days of receiving corrected information from local taxing jurisdictions.

The Department of Revenue must maintain GIS database data at least 95 percent accurate based on a statistically valid sample of addresses or another acceptable accuracy verification method.

The bill applies to audits commenced by local taxing jurisdictions on or after the effective date and provides a convenient method for jurisdictions to report database errors to the Department of Revenue.