Colorado Changes Requirements for Home Rule Jurisdictions Not Using SUTS

On April 4, 2024, Colorado’s Governor signed H.B. 1041 into law, aimed at streamlining sales and use tax filing processes. This legislation mandates that home rule localities in Colorado that do not utilize the state’s Sales and Use Tax Simplification System (SUTS) cannot collect sales and use tax from retailers without an in-state physical presence unless the retailer opts to collect or remit sales tax or enters into a voluntary collection agreement. Starting January 1, 2025, the law allows the Colorado Department of Revenue to permit taxpayers collecting less than $600 in sales or use tax per month to file quarterly, an increase from the current $300 threshold. Beginning January 1, 2026, the Department has the authority to raise this threshold. For more details on the SUTS system, refer to H.B. 1017 (2023). (Colorado Department of Revenue, H.B. 1041, April 4, 2024)

Posted on May 28, 2024