Second Regular Session
Seventy-third General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 22-0729.01 Megan McCall x4215
SENATE BILL 22-006
Senate Committees House Committees
Finance
A BILL FOR AN ACT
C
ONCERNING AN INCREASE IN THE AMOUNT OF SALES TAX REVENUE101
THAT A RETAILER MAY RETAIN TO COVER THE RETAILER 'S102
EXPENSE IN COLLECTING AND REMITTING THE TAX .103
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov/
.)
The bill permits a retailer with total taxable sales in the amount of
$100,000 or less to retain 5.3% of the sales tax reported as compensation
for the retailer's expenses incurred in collecting and remitting the tax
(vendor fee) for sales made in 2023, rather than retaining a 4% vendor
fee, which is what current law allows. The bill also clarifies that the
SENATE SPONSORSHIP
Kolker and Rodriguez,
HOUSE SPONSORSHIP
McLachlan and Snyder,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing statute.
Dashes through the words indicate deletions from existing statute. calculation of the amount that is credited to the housing development
grant fund is only based on the changes to the vendor fee from House Bill
19-1245, and not on any subsequent modifications, including those
changes made in this bill.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. Legislative declaration. (1) The general assembly2
hereby finds and declares that:3
(a) The ongoing COVID-19 pandemic has caused adverse impacts4
to small businesses in Colorado and continues to do so;5
(b) The financial viability of small businesses is critical to6
Colorado's economic recovery from the impacts of COVID-19;7
(c) Retail businesses in Colorado are required to collect and remit8
sales tax revenue to the state; except that a retailer may retain a certain9
percentage of the sales tax collected for the expense of collecting and10
remitting the sales tax revenue; and11
(d) The general assembly finds that in order to provide financial12
relief to small retail businesses in the state, department of revenue shall13
permit retailers with a certain amount of taxable sales to retain a larger14
percentage of the sales tax they collect.15
SECTION 2. In Colorado Revised Statutes, 39-26-105, amend16
(1)(d)(I) as follows:17
39-26-105. Vendor liable for tax - definitions - repeal.18
(1) (d) (I) (A) For sales made on or after January 1, 2020,
EXCEPT AS19
PROVIDED IN SUBSECTION (1)(d)(I)(B) OF THIS SECTION, the amount20
retained by a retailer to cover the retailer's expense in collecting and21
remitting tax in accordance with this section is four percent of the tax22
reported; except that a retailer shall not retain more than one thousand23
SB22-006-2- dollars in any filing period.1
(B) F
OR SALES MADE ON AND AFTER JANUARY 1, 2023, BUT2
BEFORE JANUARY 1, 2024, THE AMOUNT RETAINED BY A RETAILER TO3
COVER THE RETAILER'S EXPENSE IN COLLECTING AND REMITTING TAX IN4
ACCORDANCE WITH THIS SECTION FOR ANY FILING PERIOD THAT THE5
RETAILER'S TOTAL TAXABLE SALES ARE LESS THAN OR EQUAL TO ONE6
HUNDRED THOUSAND DOLLARS IS FIVE AND THREE -TENTHS PERCENT OF7
THE TAX REPORTED; EXCEPT THAT A RETAILER SHOULD NOT RETAIN MORE8
THAN ONE THOUSAND DOLLARS IN ANY FILING PERIOD . THIS SUBSECTION9
(1)(d)(I)(B)
IS REPEALED, EFFECTIVE JANUARY 1, 2032.10
SECTION 3. In Colorado Revised Statutes, 39-26-123, amend11
(3)(b)(I); and repeal (1)(a) as follows:12
39-26-123. Receipts - disposition - transfers of general fund13
surplus - sales tax holding fund - creation - definitions. (1) As used in14
this section, unless the context otherwise requires:15
(a) "Increase in sales and use tax revenue attributable to the
16
vendor fee changes" means an amount equal to the net revenue for a fiscal17
year minus what the net revenue would have been for the fiscal year if the18
amount retained by a vendor to cover the vendor's expenses in collecting19
and remitting sales tax had not been modified by House Bill 19-1245,20
enacted in 2019.21
(3) For any state fiscal year commencing on or after July 1, 2013,22
the state treasurer shall credit eighty-five percent of all net revenue23
collected under this article 26 to the old age pension fund created in24
section 1 of article XXIV of the state constitution. The state treasurer25
shall credit to the general fund the remaining fifteen percent of the net26
revenue, less:27
SB22-006
-3- (b) (I) Except as set forth in subsection (3)(b)(II) of this section,1
an amount equal to the
FISCAL YEAR increase in sales and use tax revenue2
attributable to the vendor fee changes
MADE BY HOUSE BILL 19-1245,3
ENACTED IN 2019, which amount the state treasurer shall credit to the4
housing development grant fund created in section 24-32-721 (1). 5
SECTION 4. Act subject to petition - effective date. This act6
takes effect at 12:01 a.m. on the day following the expiration of the7
ninety-day period after final adjournment of the general assembly; except8
that, if a referendum petition is filed pursuant to section 1 (3) of article V9
of the state constitution against this act or an item, section, or part of this10
act within such period, then the act, item, section, or part will not take11
effect unless approved by the people at the general election to be held in12
November 2022 and, in such case, will take effect on the date of the13
official declaration of the vote thereon by the governor.14
SB22-006
-4-