Stay up to date with sales tax: Join our mailing list!


The Direct Marketing Association has reached a settlement agreement with the Colorado Department Revenue in regards to its lawsuit over the state’s use tax notice and reporting requirements. Pursuant to the settlement agreement, the use tax notice and reporting requirements legislation becomes effective on July 1, 2017. Per the agreement, the Department of Revenue will waive penalties for non-collecting retailers who fail to comply with the legislation prior to July 1, 2017. Non-Collecting Retailers will be required to include the required transactional notices on all invoices issued after July 1, 2017 per Sec 39-21-112(3.5)(c)(I) and 1 Colo Code Regs Section 201-1: 39-21-112.3.5(2).

 

The first annual summaries of customer purchases required of non-collecting retailers must be mailed to customers by January 31, 2018. The Department will waive all penalties for non-collecting retailers who do not include customer purchases made prior to July 1, 2017 in any annual summary provided to Colorado customers before the January 31, 2018 deadline. This summary must include all transactions dated after July 1, 2017 and if possible all 2017 transactions.

 

The first customer information reports required of non-collecting retailers must be filed with the Department by March 1, 2018. The Department will waive all penalties for non-collecting retailers who do not include customer purchases occurring prior to July 1, 2017 in their customer information report provided to the Department on or before the March 1, 2018 deadline.This information report must include all transactions dated after July 1, 2017 and if possible all 2017 transactions.

 

To view our previous news item on this case, click here

 

Based on this settlement, all Colorado non-collecting retailers should review their marketing materials, invoices and systems to ensure they will be able to comply. Penalties for non-compliance are harsh.  

 

(Direct Marketing. Association v. Colorado Department of Revenue, Colo. Dist. Ct., No. 13-CV-34855, settlement announced 2/23/17)

(03/06/2017)

Effective January 1, 2018, New Jersey's state sales and use tax rate is reduced to 6.625%. Previously, the state had enacted legislation that reduced the state sales and use tax rate from 7% to 6.875% on January 1, 2017. The enacted legislation includes transition rules for contracts that cover periods crossing the tax rate changes. (Ch. 57 (A.B. 12), Laws 2016, effective October 14, 2016, applicable as noted)

(12/22/2017)

Updated regularly - awaiting legislation for additional programs which are added as enacted or announced: Click here for chart

(03/06/2017)

Updated regularly - information is updated as states announce dates and participation: Click here for chart

(01/24/2017)

The City of Chicago has changed the terms of its voluntary disclosure (VDA) program. In addition to waiving all penalties for qualified participating taxpayers, the city will now also waive 50% of interest that would apply. This is a significant change as the city did not previously waive any interest as part of its VDA program. It also should be noted that the city provides for a limited look-back period of 4 years for qualified taxpayers participating in the program. If under audit an error rate of less than 10% is discovered for periods disclosed, the additional tax, interest and penalty will be due for the amount not previously disclosed.  If the error rate is greater than 10%, the Department reserves the right to dissolve the voluntary disclosure agreement. For more information regarding the VDA program, you can visit the City of Chicago website. (City of Chicago Tax Collection and Enforcement – Apply for Voluntary Disclosure of Business Taxes webpage)

(01/02/2018)

Pages

Scroll to Top