Second Regular Session
Seventy-third General Assembly
STATE OF COLORADO
REVISED
This Version Includes All Amendments Adopted
on Second Reading in the Second House
LLS NO. 22-0729.01 Megan McCall x4215
SENATE BILL 22-006
Senate Committees House Committees
Finance Finance
Appropriations Appropriations
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 , AND, IN
103
CONNECTION THEREWITH , MAKING AN APPROPRIATION .104
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
HOUSE
Amended 2nd Reading
May 5, 2022
SENATE
3rd Reading Unamended
March 14, 2022
SENATE
Amended 2nd Reading
March 11, 2022
SENATE SPONSORSHIP
Kolker and Rodriguez, Bridges, Cooke, Gardner, Hansen, Hisey, Holbert, Kirkmeyer,
Lee, Liston, Lundeen, Pettersen, Priola, Rankin, Simpson, Smallwood, Woodward
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. (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
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, 39-21-119.5, add (7)16
as follows:17
39-21-119.5. Mandatory electronic filing of returns -18
mandatory electronic payment - penalty - waiver - definitions.19
(7) (a) IN ORDER TO INDUCE THE ELECTRONIC PAYMENT OF TAXES AND20
FEES ADMINISTERED UNDER SECTION 39-21-102, THE EXECUTIVE21
DIRECTOR MAY DEDUCT PROCESSING COSTS FROM THE PAYMENT IN LIEU22
006-2- OF IMPOSING A CONVENIENCE FEE, AND IF THE PROCESSING COSTS ARE1
DEDUCTED FROM THE PAYMENT, THE EXECUTIVE DIRECTOR SHALL CREDIT2
THE FULL AMOUNT OF THE PAYMENT COLLECTED TO THE TAXPAYER'S3
ACCOUNT. PROCESSING COSTS MAY BE DEDUCTED BY THE EXECUTIVE4
DIRECTOR UNDER THIS SUBSECTION (7) REGARDLESS OF IF ELECTRONIC5
PAYMENT IS MANDATED UNDER THIS SECTION .6
(b) NOTWITHSTANDING ANY PROVISION TO THE CONTRARY, IF THE7
EXECUTIVE DIRECTOR DEDUCTS PROCESSING COSTS PURSUANT TO THIS8
SUBSECTION (7), THE STATE TREASURER SHALL CREDIT THE FULL AMOUNT9
OF THE PAYMENT COLLECTED LESS THE DEDUCTED PROCESSING COSTS TO10
THE APPROPRIATE FUND.11
(c) IF THE EXECUTIVE DIRECTOR IS REQUIRED TO DISTRIBUTE12
PAYMENT TO A LOCAL GOVERNMENT , THE EXECUTIVE DIRECTOR SHALL13
DEDUCT THE PROCESSING COSTS FROM STATE REVENUE AND SHALL NOT14
REDUCE THE AMOUNT DISTRIBUTED TO THE LOCAL GOVERNMENT .15
(d) AS USED IN THIS SUBSECTION (7):16
(I) "CONVENIENCE FEE" MEANS THE CONVENIENCE FEE THAT A17
STATE GOVERNMENTAL ENTITY IS AUTHORIZED TO IMPOSE ON A PERSON18
THAT USES ALTERNATIVE FORMS OF PAYMENT UNDER SECTION19
24-19.5-103 (3).20
(II) "PROCESSING COSTS" MEANS THE ACTUAL COSTS INCURRED BY21
THE DEPARTMENT TO PROCESS A TRANSACTION BY AN ALTERNATIVE FORM22
OF PAYMENT FOR WHICH THE DEPARTMENT IS AUTHORIZED TO IMPOSE A23
CONVENIENCE FEE.24
SECTION 3. In Colorado Revised Statutes, 39-26-105, amend25
(1)(d)(I) as follows:26
39-26-105. Vendor liable for tax - definitions - repeal.27
006
-3- (1) (d) (I) (A) For sales made on or after January 1, 2020, EXCEPT AS1
PROVIDED IN SUBSECTION (1)(d)(I)(B) OF THIS SECTION, the amount2
retained by a retailer to cover the retailer's expense in collecting and3
remitting tax in accordance with this section is four percent of the tax4
reported; except that a retailer shall not retain more than one thousand5
dollars in any filing period.6
(B) F
OR SALES MADE ON AND AFTER JANUARY 1, 2023, BUT7
BEFORE JANUARY 1, 2024, THE AMOUNT RETAINED BY A RETAILER TO8
COVER THE RETAILER'S EXPENSE IN COLLECTING AND REMITTING TAX IN9
ACCORDANCE WITH THIS SECTION FOR ANY FILING PERIOD THAT THE10
RETAILER'S TOTAL TAXABLE SALES ARE LESS THAN OR EQUAL TO ONE11
HUNDRED THOUSAND DOLLARS IS FIVE AND THREE -TENTHS PERCENT OF12
THE TAX REPORTED; EXCEPT THAT A RETAILER SHOULD NOT RETAIN MORE13
THAN ONE THOUSAND DOLLARS IN ANY FILING PERIOD . THIS SUBSECTION14
(1)(d)(I)(B)
IS REPEALED, EFFECTIVE JANUARY 1, 2032.15
SECTION
4. In Colorado Revised Statutes, 39-26-123, amend16
(3)(b)(I); and repeal (1)(a) as follows:17
39-26-123. Receipts - disposition - transfers of general fund18
surplus - sales tax holding fund - creation - definitions. (1) As used in19
this section, unless the context otherwise requires:20
(a) "Increase in sales and use tax revenue attributable to the21
vendor fee changes" means an amount equal to the net revenue for a fiscal22
year minus what the net revenue would have been for the fiscal year if the23
amount retained by a vendor to cover the vendor's expenses in collecting24
and remitting sales tax had not been modified by House Bill 19-1245,25
enacted in 2019.26
(3) For any state fiscal year commencing on or after July 1, 2013,27
006
-4- the state treasurer shall credit eighty-five percent of all net revenue1
collected under this article 26 to the old age pension fund created in2
section 1 of article XXIV of the state constitution. The state treasurer3
shall credit to the general fund the remaining fifteen percent of the net4
revenue, less:5
(b) (I) Except as set forth in subsection (3)(b)(II) of this section,6
an amount equal to the
FISCAL YEAR increase in sales and use tax revenue7
attributable to the vendor fee changes
MADE BY HOUSE BILL 19-1245,8
ENACTED IN 2019, which amount the state treasurer shall credit to the9
housing development grant fund created in section 24-32-721 (1). 10
SECTION
5. Appropriation. (1) For the 2022-23 state fiscal11
year, $61,980 is appropriated to the department of revenue. This12
appropriation is from the general fund. To implement this act, the13
department may use this appropriation as follows:14
(a) $16,875 for tax administration IT system (GenTax) support; 15
(b) $6,400 for use by the executive director's office for personal16
services;17
(c) $33,705 for use by the taxation services division for personal18
services; and19
(d) $5,000 for use by the taxation services division for operating20
expenses.21
SECTION 6. Act subject to petition - effective date. This act22
takes effect at 12:01 a.m. on the day following the expiration of the23
ninety-day period after final adjournment of the general assembly; except24
that, if a referendum petition is filed pursuant to section 1 (3) of article V25
of the state constitution against this act or an item, section, or part of this26
act within such period, then the act, item, section, or part will not take27
006
-5- effect unless approved by the people at the general election to be held in1
November 2022 and, in such case, will take effect on the date of the2
official declaration of the vote thereon by the governor.3
006
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