SENATE BILL 22-006
BY SENATOR(S) Kolker and Rodriguez, Bridges, Cooke, Gardner,
Hansen, Hisey, Holbert, Kirkmeyer, Lee, Liston, Lundeen, Pettersen, Priola,
Rankin, Simpson, Smallwood, Woodward;
also REPRESENTATIVE(S) McLachlan and Snyder, Bernett, Bird,
Bockenfeld, Boesenecker, Caraveo, Cutter, Duran, Exum, Herod, Hooton,
Jodeh, Kipp, Lindsay, McCluskie, McKean, Michaelson Jenet, Ortiz,
Pelton, Ricks, Roberts, Titone, Valdez A., Valdez D., Weissman, Will,
Young, Garnett.
C
ONCERNING AN INCREASE IN THE AMOUNT OF SALES TAX REVENUE THAT A
RETAILER MAY RETAIN TO COVER THE RETAILER
'S EXPENSE IN
COLLECTING AND REMITTING THE TAX
, AND, IN CONNECTION
THEREWITH
, MAKING AN APPROPRIATION.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. Legislative declaration. (1) The general assembly
hereby finds and declares that:
(a) The ongoing COVID-19 pandemic has caused adverse impacts
to small businesses in Colorado and continues to do so;
NOTE: This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor. To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
________
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act. (b) The financial viability of small businesses is critical to
Colorado's economic recovery from the impacts of COVID-19;
(c) Retail businesses in Colorado are required to collect and remit
sales tax revenue to the state; except that a retailer may retain a certain
percentage of the sales tax collected for the expense of collecting and
remitting the sales tax revenue; and
(d) The general assembly finds that in order to provide financial
relief to small retail businesses in the state, department of revenue shall
permit retailers with a certain amount of taxable sales to retain a larger
percentage of the sales tax they collect.
SECTION 2. In Colorado Revised Statutes, 39-21-119.5, add (7)
as follows:
39-21-119.5. Mandatory electronic filing of returns - mandatory
electronic payment - penalty - waiver - definitions. (7) (a) I
N ORDER TO
INDUCE THE ELECTRONIC PAYMENT OF TAXES AND FEES ADMINISTERED
UNDER SECTION
39-21-102, THE EXECUTIVE DIRECTOR MAY DEDUCT
PROCESSING COSTS FROM THE PAYMENT IN LIEU OF IMPOSING A
CONVENIENCE FEE
, AND IF THE PROCESSING COSTS ARE DEDUCTED FROM THE
PAYMENT
, THE EXECUTIVE DIRECTOR SHALL CREDIT THE FULL AMOUNT OF
THE PAYMENT COLLECTED TO THE TAXPAYER
'S ACCOUNT. PROCESSING
COSTS MAY BE DEDUCTED BY THE EXECUTIVE DIRECTOR UNDER THIS
SUBSECTION
(7) REGARDLESS OF IF ELECTRONIC PAYMENT IS MANDATED
UNDER THIS SECTION
.
(b) N
OTWITHSTANDING ANY PROVISION TO THE CONTRARY , IF THE
EXECUTIVE DIRECTOR DEDUCTS PROCESSING COSTS PURSUANT TO THIS
SUBSECTION
(7), THE STATE TREASURER SHALL CREDIT THE FULL AMOUNT
OF THE PAYMENT COLLECTED LESS THE DEDUCTED PROCESSING COSTS TO
THE APPROPRIATE FUND
.
(c) I
F THE EXECUTIVE DIRECTOR IS REQUIRED TO DISTRIBUTE
PAYMENT TO A LOCAL GOVERNMENT
, THE EXECUTIVE DIRECTOR SHALL
DEDUCT THE PROCESSING COSTS FROM STATE REVENUE AND SHALL NOT
REDUCE THE AMOUNT DISTRIBUTED TO THE LOCAL GOVERNMENT
.
(d) A
S USED IN THIS SUBSECTION (7):
PAGE 2-SENATE BILL 22-006 (I) "CONVENIENCE FEE" MEANS THE CONVENIENCE FEE THAT A STATE
GOVERNMENTAL ENTITY IS AUTHORIZED TO IMPOSE ON A PERSON THAT USES
ALTERNATIVE FORMS OF PAYMENT UNDER SECTION
24-19.5-103 (3).
(II) "P
ROCESSING COSTS" MEANS THE ACTUAL COSTS INCURRED BY
THE DEPARTMENT TO PROCESS A TRANSACTION BY AN ALTERNATIVE FORM
OF PAYMENT FOR WHICH THE DEPARTMENT IS AUTHORIZED TO IMPOSE A
CONVENIENCE FEE
.
SECTION 3. In Colorado Revised Statutes, 39-26-105, amend
(1)(d)(I) as follows:
39-26-105. Vendor liable for tax - definitions - repeal.
(1) (d) (I) (A) For sales made on or after January 1, 2020,
EXCEPT AS
PROVIDED IN SUBSECTION
(1)(d)(I)(B) OF THIS SECTION, the amount retained
by a retailer to cover the retailer's expense in collecting and remitting tax in
accordance with this section is four percent of the tax reported; except that
a retailer shall not retain more than one thousand dollars in any filing
period.
(B) F
OR SALES MADE ON AND AFTER JANUARY 1, 2023, BUT BEFORE
JANUARY 1, 2024, THE AMOUNT RETAINED BY A RETAILER TO COVER THE
RETAILER
'S EXPENSE IN COLLECTING AND REMITTING TAX IN ACCORDANCE
WITH THIS SECTION FOR ANY FILING PERIOD THAT THE RETAILER
'S TOTAL
TAXABLE SALES ARE LESS THAN OR EQUAL TO ONE HUNDRED THOUSAND
DOLLARS IS FIVE AND THREE
-TENTHS PERCENT OF THE TAX REPORTED ;
EXCEPT THAT A RETAILER SHOULD NOT RETAIN MORE THAN ONE THOUSAND
DOLLARS IN ANY FILING PERIOD
. THIS SUBSECTION (1)(d)(I)(B) IS REPEALED,
EFFECTIVE JANUARY 1, 2032.
SECTION 4. In Colorado Revised Statutes, 39-26-123, amend
(3)(b)(I); and repeal (1)(a) as follows:
39-26-123. Receipts - disposition - transfers of general fund
surplus - sales tax holding fund - creation - definitions. (1) As used in
this section, unless the context otherwise requires:
(a) "Increase in sales and use tax revenue attributable to the vendor
fee changes" means an amount equal to the net revenue for a fiscal year
minus what the net revenue would have been for the fiscal year if the
PAGE 3-SENATE BILL 22-006 amount retained by a vendor to cover the vendor's expenses in collecting
and remitting sales tax had not been modified by House Bill 19-1245,
enacted in 2019.
(3) For any state fiscal year commencing on or after July 1, 2013,
the state treasurer shall credit eighty-five percent of all net revenue
collected under this article 26 to the old age pension fund created in section
1 of article XXIV of the state constitution. The state treasurer shall credit
to the general fund the remaining fifteen percent of the net revenue, less:
(b) (I) Except as set forth in subsection (3)(b)(II) of this section, an
amount equal to the
FISCAL YEAR increase in sales and use tax revenue
attributable to the vendor fee changes
MADE BY HOUSE BILL 19-1245,
ENACTED IN 2019, which amount the state treasurer shall credit to the
housing development grant fund created in section 24-32-721 (1).
SECTION 5. Appropriation. (1) For the 2022-23 state fiscal year,
$61,980 is appropriated to the department of revenue. This appropriation is
from the general fund. To implement this act, the department may use this
appropriation as follows:
(a) $16,875 for tax administration IT system (GenTax) support;
(b) $6,400 for use by the executive director's office for personal
services;
(c) $33,705 for use by the taxation services division for personal
services; and
(d) $5,000 for use by the taxation services division for operating
expenses.
SECTION 6. Act subject to petition - effective date. This act
takes effect at 12:01 a.m. on the day following the expiration of the
ninety-day period after final adjournment of the general assembly; except
that, if a referendum petition is filed pursuant to section 1 (3) of article V
of the state constitution against this act or an item, section, or part of this act
within such period, then the act, item, section, or part will not take effect
unless approved by the people at the general election to be held in
PAGE 4-SENATE BILL 22-006 November 2022 and, in such case, will take effect on the date of the official
declaration of the vote thereon by the governor.
____________________________ ____________________________
Steve Fenberg Alec Garnett
PRESIDENT OF SPEAKER OF THE HOUSE
THE SENATE OF REPRESENTATIVES
____________________________ ____________________________
Cindi L. Markwell Robin Jones
SECRETARY OF CHIEF CLERK OF THE HOUSE
THE SENATE OF REPRESENTATIVES
APPROVED________________________________________
(Date and Time)
_________________________________________
Jared S. Polis
GOVERNOR OF THE STATE OF COLORADO
PAGE 5-SENATE BILL 22-006