Colorado 2022 Regular Session

Colorado Senate Bill SB006 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
	1	+	Second Regular Session
	2	+	Seventy-third General Assembly
	3	+	STATE OF COLORADO
	4	+	REREVISED
	5	+	This Version Includes All Amendments
	6	+	Adopted in the Second House
	7	+	LLS NO. 22-0729.01 Megan McCall x4215
1	8		SENATE BILL 22-006
2		-	BY SENATOR(S) Kolker and Rodriguez, Bridges, Cooke, Gardner,
3		-	Hansen, Hisey, Holbert, Kirkmeyer, Lee, Liston, Lundeen, Pettersen, Priola,
4		-	Rankin, Simpson, Smallwood, Woodward;
5		-	also REPRESENTATIVE(S) McLachlan and Snyder, Bernett, Bird,
6		-	Bockenfeld, Boesenecker, Caraveo, Cutter, Duran, Exum, Herod, Hooton,
7		-	Jodeh, Kipp, Lindsay, McCluskie, McKean, Michaelson Jenet, Ortiz,
8		-	Pelton, Ricks, Roberts, Titone, Valdez A., Valdez D., Weissman, Will,
9		-	Young, Garnett.
	9	+	Senate Committees House Committees
	10	+	Finance Finance
	11	+	Appropriations Appropriations
	12	+	A BILL FOR AN ACT
10	13		C
11		-	ONCERNING AN INCREASE IN THE AMOUNT OF SALES TAX REVENUE THAT A
12		-	RETAILER MAY RETAIN TO COVER THE RETAILER
13		-	'S EXPENSE IN
14		-	COLLECTING AND REMITTING THE TAX
15		-	, AND, IN CONNECTION
16		-	THEREWITH
17		-	, MAKING AN APPROPRIATION.
18		-	Be it enacted by the General Assembly of the State of Colorado:
19		-	SECTION 1. Legislative declaration. (1) The general assembly
20		-	hereby finds and declares that:
21		-	(a) The ongoing COVID-19 pandemic has caused adverse impacts
22		-	to small businesses in Colorado and continues to do so;
23		-	NOTE: This bill has been prepared for the signatures of the appropriate legislative
24		-	officers and the Governor. To determine whether the Governor has signed the bill
25		-	or taken other action on it, please consult the legislative status sheet, the legislative
26		-	history, or the Session Laws.
27		-	________
28		-	Capital letters or bold & italic numbers indicate new material added to existing law; dashes
29		-	through words or numbers indicate deletions from existing law and such material is not part of
30		-	the act. (b) The financial viability of small businesses is critical to
31		-	Colorado's economic recovery from the impacts of COVID-19;
32		-	(c) Retail businesses in Colorado are required to collect and remit
33		-	sales tax revenue to the state; except that a retailer may retain a certain
34		-	percentage of the sales tax collected for the expense of collecting and
35		-	remitting the sales tax revenue; and
36		-	(d) The general assembly finds that in order to provide financial
37		-	relief to small retail businesses in the state, department of revenue shall
38		-	permit retailers with a certain amount of taxable sales to retain a larger
39		-	percentage of the sales tax they collect.
40		-	SECTION 2. In Colorado Revised Statutes, 39-21-119.5, add (7)
41		-	as follows:
42		-	39-21-119.5. Mandatory electronic filing of returns - mandatory
43		-	electronic payment - penalty - waiver - definitions. (7) (a) I
44		-	N ORDER TO
45		-	INDUCE THE ELECTRONIC PAYMENT OF TAXES AND FEES ADMINISTERED
46		-	UNDER SECTION
47		-	39-21-102, THE EXECUTIVE DIRECTOR MAY DEDUCT
48		-	PROCESSING COSTS FROM THE PAYMENT IN LIEU OF IMPOSING A
49		-	CONVENIENCE FEE
50		-	, AND IF THE PROCESSING COSTS ARE DEDUCTED FROM THE
51		-	PAYMENT
52		-	, THE EXECUTIVE DIRECTOR SHALL CREDIT THE FULL AMOUNT OF
53		-	THE PAYMENT COLLECTED TO THE TAXPAYER
54		-	'S ACCOUNT. PROCESSING
55		-	COSTS MAY BE DEDUCTED BY THE EXECUTIVE DIRECTOR UNDER THIS
56		-	SUBSECTION
57		-	(7) REGARDLESS OF IF ELECTRONIC PAYMENT IS MANDATED
58		-	UNDER THIS SECTION
59		-	.
60		-	(b) N
61		-	OTWITHSTANDING ANY PROVISION TO THE CONTRARY , IF THE
62		-	EXECUTIVE DIRECTOR DEDUCTS PROCESSING COSTS PURSUANT TO THIS
63		-	SUBSECTION
64		-	(7), THE STATE TREASURER SHALL CREDIT THE FULL AMOUNT
65		-	OF THE PAYMENT COLLECTED LESS THE DEDUCTED PROCESSING COSTS TO
66		-	THE APPROPRIATE FUND
67		-	.
68		-	(c) I
69		-	F THE EXECUTIVE DIRECTOR IS REQUIRED TO DISTRIBUTE
70		-	PAYMENT TO A LOCAL GOVERNMENT
71		-	, THE EXECUTIVE DIRECTOR SHALL
72		-	DEDUCT THE PROCESSING COSTS FROM STATE REVENUE AND SHALL NOT
73		-	REDUCE THE AMOUNT DISTRIBUTED TO THE LOCAL GOVERNMENT
74		-	.
75		-	(d) A
76		-	S USED IN THIS SUBSECTION (7):
77		-	PAGE 2-SENATE BILL 22-006 (I) "CONVENIENCE FEE" MEANS THE CONVENIENCE FEE THAT A STATE
78		-	GOVERNMENTAL ENTITY IS AUTHORIZED TO IMPOSE ON A PERSON THAT USES
79		-	ALTERNATIVE FORMS OF PAYMENT UNDER SECTION
80		-	24-19.5-103 (3).
81		-	(II) "P
82		-	ROCESSING COSTS" MEANS THE ACTUAL COSTS INCURRED BY
83		-	THE DEPARTMENT TO PROCESS A TRANSACTION BY AN ALTERNATIVE FORM
84		-	OF PAYMENT FOR WHICH THE DEPARTMENT IS AUTHORIZED TO IMPOSE A
85		-	CONVENIENCE FEE
86		-	.
87		-	SECTION 3. In Colorado Revised Statutes, 39-26-105, amend
88		-	(1)(d)(I) as follows:
89		-	39-26-105. Vendor liable for tax - definitions - repeal.
90		-	(1) (d) (I) (A) For sales made on or after January 1, 2020,
91		-	EXCEPT AS
92		-	PROVIDED IN SUBSECTION
93		-	(1)(d)(I)(B) OF THIS SECTION, the amount retained
94		-	by a retailer to cover the retailer's expense in collecting and remitting tax in
95		-	accordance with this section is four percent of the tax reported; except that
96		-	a retailer shall not retain more than one thousand dollars in any filing
97		-	period.
	14	+	ONCERNING AN INCREASE IN THE AMOUNT OF SALES TAX REVENUE101
	15	+	THAT A RETAILER MAY RETAIN TO COVER THE RETAILER 'S102
	16	+	EXPENSE IN COLLECTING AND REMITTING THE TAX , AND, IN
	17	+	103
	18	+	CONNECTION THEREWITH , MAKING AN APPROPRIATION .104
	19	+	Bill Summary
	20	+	(Note: This summary applies to this bill as introduced and does
	21	+	not reflect any amendments that may be subsequently adopted. If this bill
	22	+	passes third reading in the house of introduction, a bill summary that
	23	+	applies to the reengrossed version of this bill will be available at
	24	+	http://leg.colorado.gov/
	25	+	.)
	26	+	The bill permits a retailer with total taxable sales in the amount of
	27	+	$100,000 or less to retain 5.3% of the sales tax reported as compensation
	28	+	for the retailer's expenses incurred in collecting and remitting the tax
	29	+	HOUSE
	30	+	3rd Reading Unamended
	31	+	May 9, 2022
	32	+	HOUSE
	33	+	Amended 2nd Reading
	34	+	May 5, 2022
	35	+	SENATE
	36	+	3rd Reading Unamended
	37	+	March 14, 2022
	38	+	SENATE
	39	+	Amended 2nd Reading
	40	+	March 11, 2022
	41	+	SENATE SPONSORSHIP
	42	+	Kolker and Rodriguez, Bridges, Cooke, Gardner, Hansen, Hisey, Holbert, Kirkmeyer,
	43	+	Lee, Liston, Lundeen, Pettersen, Priola, Rankin, Simpson, Smallwood, Woodward
	44	+	HOUSE SPONSORSHIP
	45	+	McLachlan and Snyder, Bernett, Bird, Bockenfeld, Boesenecker, Caraveo, Cutter, Duran,
	46	+	Exum, Garnett, Herod, Hooton, Jodeh, Kipp, Lindsay, McCluskie, McKean, Michaelson
	47	+	Jenet, Ortiz, Pelton, Ricks, Roberts, Titone, Valdez A., Valdez D., Weissman, Will, Young
	48	+	Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
	49	+	Capital letters or bold & italic numbers indicate new material to be added to existing statute.
	50	+	Dashes through the words indicate deletions from existing statute. (vendor fee) for sales made in 2023, rather than retaining a 4% vendor
	51	+	fee, which is what current law allows. The bill also clarifies that the
	52	+	calculation of the amount that is credited to the housing development
	53	+	grant fund is only based on the changes to the vendor fee from House Bill
	54	+	19-1245, and not on any subsequent modifications, including those
	55	+	changes made in this bill.
	56	+	Be it enacted by the General Assembly of the State of Colorado:1
	57	+	SECTION 1. Legislative declaration. (1) The general assembly2
	58	+	hereby finds and declares that:3
	59	+	(a) The ongoing COVID-19 pandemic has caused adverse impacts4
	60	+	to small businesses in Colorado and continues to do so;5
	61	+	(b) The financial viability of small businesses is critical to6
	62	+	Colorado's economic recovery from the impacts of COVID-19;7
	63	+	(c) Retail businesses in Colorado are required to collect and remit8
	64	+	sales tax revenue to the state; except that a retailer may retain a certain9
	65	+	percentage of the sales tax collected for the expense of collecting and10
	66	+	remitting the sales tax revenue; and11
	67	+	(d) The general assembly finds that in order to provide financial12
	68	+	relief to small retail businesses in the state, department of revenue shall13
	69	+	permit retailers with a certain amount of taxable sales to retain a larger14
	70	+	percentage of the sales tax they collect.15
	71	+	SECTION 2. In Colorado Revised Statutes, 39-21-119.5, add (7)16
	72	+	as follows:17
	73	+	39-21-119.5. Mandatory electronic filing of returns -18
	74	+	mandatory electronic payment - penalty - waiver - definitions.19
	75	+	(7) (a) IN ORDER TO INDUCE THE ELECTRONIC PAYMENT OF TAXES AND20
	76	+	FEES ADMINISTERED UNDER SECTION 39-21-102, THE EXECUTIVE21
	77	+	DIRECTOR MAY DEDUCT PROCESSING COSTS FROM THE PAYMENT IN LIEU22
	78	+	006-2- OF IMPOSING A CONVENIENCE FEE, AND IF THE PROCESSING COSTS ARE1
	79	+	DEDUCTED FROM THE PAYMENT, THE EXECUTIVE DIRECTOR SHALL CREDIT2
	80	+	THE FULL AMOUNT OF THE PAYMENT COLLECTED TO THE TAXPAYER'S3
	81	+	ACCOUNT. PROCESSING COSTS MAY BE DEDUCTED BY THE EXECUTIVE4
	82	+	DIRECTOR UNDER THIS SUBSECTION (7) REGARDLESS OF IF ELECTRONIC5
	83	+	PAYMENT IS MANDATED UNDER THIS SECTION .6
	84	+	(b) NOTWITHSTANDING ANY PROVISION TO THE CONTRARY, IF THE7
	85	+	EXECUTIVE DIRECTOR DEDUCTS PROCESSING COSTS PURSUANT TO THIS8
	86	+	SUBSECTION (7), THE STATE TREASURER SHALL CREDIT THE FULL AMOUNT9
	87	+	OF THE PAYMENT COLLECTED LESS THE DEDUCTED PROCESSING COSTS TO10
	88	+	THE APPROPRIATE FUND.11
	89	+	(c) IF THE EXECUTIVE DIRECTOR IS REQUIRED TO DISTRIBUTE12
	90	+	PAYMENT TO A LOCAL GOVERNMENT , THE EXECUTIVE DIRECTOR SHALL13
	91	+	DEDUCT THE PROCESSING COSTS FROM STATE REVENUE AND SHALL NOT14
	92	+	REDUCE THE AMOUNT DISTRIBUTED TO THE LOCAL GOVERNMENT .15
	93	+	(d) AS USED IN THIS SUBSECTION (7):16
	94	+	(I) "CONVENIENCE FEE" MEANS THE CONVENIENCE FEE THAT A17
	95	+	STATE GOVERNMENTAL ENTITY IS AUTHORIZED TO IMPOSE ON A PERSON18
	96	+	THAT USES ALTERNATIVE FORMS OF PAYMENT UNDER SECTION19
	97	+	24-19.5-103 (3).20
	98	+	(II) "PROCESSING COSTS" MEANS THE ACTUAL COSTS INCURRED BY21
	99	+	THE DEPARTMENT TO PROCESS A TRANSACTION BY AN ALTERNATIVE FORM22
	100	+	OF PAYMENT FOR WHICH THE DEPARTMENT IS AUTHORIZED TO IMPOSE A23
	101	+	CONVENIENCE FEE.24
	102	+	SECTION 3. In Colorado Revised Statutes, 39-26-105, amend25
	103	+	(1)(d)(I) as follows:26
	104	+	39-26-105. Vendor liable for tax - definitions - repeal.27
	105	+	006
	106	+	-3- (1) (d) (I) (A) For sales made on or after January 1, 2020, EXCEPT AS1
	107	+	PROVIDED IN SUBSECTION (1)(d)(I)(B) OF THIS SECTION, the amount2
	108	+	retained by a retailer to cover the retailer's expense in collecting and3
	109	+	remitting tax in accordance with this section is four percent of the tax4
	110	+	reported; except that a retailer shall not retain more than one thousand5
	111	+	dollars in any filing period.6
98	112		(B) F
99		-	OR SALES MADE ON AND AFTER JANUARY 1, 2023, ~~BUT BEFORE~~
100		-	JANUARY 1, 2024, THE AMOUNT RETAINED BY A RETAILER ~~TO COVER THE~~
101		-	RETAILER
102		-	~~'S EXPENSE IN COLLECTING AND REMITTING TAX IN ACCORDANCE~~
103		-	~~WITH THIS SECTION FOR ANY FILING PERIOD THAT THE RETAILER~~
104		-	~~'S TOTAL~~
105		-	~~TAXABLE SALES ARE LESS THAN OR EQUAL TO ONE HUNDRED THOUSAND~~
106		-	DOLLARS ~~IS FIVE AND THREE~~
107		-	~~-TENTHS PERCENT OF THE TAX REPORTED ;~~
108		-	~~EXCEPT THAT A RETAILER SHOULD NOT RETAIN MORE THAN ONE THOUSAND~~
109		-	~~DOLLARS IN ANY FILING PERIOD~~
110		-	. ~~THIS SUBSECTION (1)(d)(I)(B) IS REPEALED~~,
111		-	~~EFFECTIVE JANUARY~~ 1~~, 2032.~~
112		-	~~SECTION 4. In Colorado Revised Statutes,~~ 39-26-123~~, amend~~
113		-	~~(3)(b)(I); and repeal~~ (1)~~(a)~~ as ~~follows:~~
114		-	~~39-26-123. Receipts - disposition - transfers of general fund~~
115		-	~~surplus -~~ sales tax ~~holding fund - creation - definitions. (1) As used in~~
116		-	~~this section,~~ ~~unless~~ the ~~context otherwise requires:~~
117		-	~~(a) "Increase~~ ~~in sales and use tax~~ revenue ~~attributable to~~ the ~~vendor~~
118		-	~~fee changes" means an~~ amount ~~equal~~ to the ~~net revenue for a fiscal year~~
119		-	~~minus what the net revenue would have~~ been ~~for the fiscal year if the~~
120		-	~~PAGE 3-SENATE BILL 22-006 amount retained by a vendor to cover the vendor's expenses~~ in ~~collecting~~
121		-	~~and remitting sales tax had not been modified by House Bill 19-1245~~,
122		-	~~enacted in 2019.~~
123		-	~~(3) For any~~ state ~~fiscal year commencing on or after July 1,~~ ~~2013,~~
124		-	the ~~state treasurer shall credit eighty-five~~ ~~percent of all net revenue~~
125		-	~~collected under this~~ article ~~26 to~~ the ~~old age pension fund created in section~~
126		-	~~1 of article XXIV~~ of the ~~state constitution. The state treasurer shall credit~~
127		-	~~to the general fund the remaining fifteen percent of the net~~ revenue, less:
128		-	(b) (I) Except as set forth in subsection (3)(b)(II) of this section, an
129		-	amount equal to the
130		-	FISCAL YEAR increase in sales and use tax ~~revenue~~
	113	+	OR SALES MADE ON AND AFTER JANUARY 1, 2023, BUT7
	114	+	BEFORE JANUARY 1, 2024, THE AMOUNT RETAINED BY A RETAILER TO8
	115	+	COVER THE RETAILER'S EXPENSE IN COLLECTING AND REMITTING TAX IN9
	116	+	ACCORDANCE WITH THIS SECTION FOR ANY FILING PERIOD THAT THE10
	117	+	RETAILER'S TOTAL TAXABLE SALES ARE LESS THAN OR EQUAL TO ONE11
	118	+	HUNDRED THOUSAND DOLLARS IS FIVE AND THREE -TENTHS PERCENT OF12
	119	+	THE TAX REPORTED; EXCEPT THAT A RETAILER SHOULD NOT RETAIN MORE13
	120	+	THAN ONE THOUSAND DOLLARS IN ANY FILING PERIOD . THIS SUBSECTION14
	121	+	(1)(d)(I)(B)
	122	+	IS REPEALED, EFFECTIVE JANUARY 1, 2032.15
	123	+	SECTION
	124	+	4. In Colorado Revised Statutes, 39-26-123, amend16
	125	+	(3)(b)(I); and repeal (1)(a) as follows:17
	126	+	39-26-123. Receipts - disposition - transfers of general fund18
	127	+	surplus - sales tax holding fund - creation - definitions. (1) As used in19
	128	+	this section, unless the context otherwise requires:20
	129	+	(a) "Increase in sales and use tax revenue attributable to the21
	130	+	vendor fee changes" means an amount equal to the net revenue for a fiscal22
	131	+	year minus what the net revenue would have been for the fiscal year if the23
	132	+	amount retained by a vendor to cover the vendor's expenses in collecting24
	133	+	and remitting sales tax had not been modified by House Bill 19-1245,25
	134	+	enacted in 2019.26
	135	+	(3) For any state fiscal year commencing on or after July 1, 2013,27
	136	+	006
	137	+	-4- the state treasurer shall credit eighty-five percent of all net revenue1
	138	+	collected under this article 26 to the old age pension fund created in2
	139	+	section 1 of article XXIV of the state constitution. The state treasurer3
	140	+	shall credit to the general fund the remaining fifteen percent of the net4
	141	+	revenue, less:5
	142	+	(b) (I) Except as set forth in subsection (3)(b)(II) of this section,6
	143	+	an amount equal to the
	144	+	FISCAL YEAR increase in sales and use tax revenue7
131	145		attributable to the vendor fee changes
132		-	MADE BY HOUSE BILL 19-1245,
133		-	ENACTED IN 2019, which amount the state treasurer shall credit to the
134		-	housing development grant fund created in section 24-32-721 (1).
135		-	SECTION 5. Appropriation. (1) For the 2022-23 state fiscal year,
136		-	$61,980 is appropriated to the department of revenue. This appropriation is
137		-	from the general fund. To implement this act, the department may use this
138		-	appropriation as follows:
139		-	(a) $16,875 for tax administration IT system (GenTax) support;
140		-	(b) $6,400 for use by the executive director's office for personal
141		-	services;
142		-	(c) $33,705 for use by the taxation services division for personal
143		-	services; and
144		-	(d) $5,000 for use by the taxation services division for operating
145		-	expenses.
146		-	SECTION 6. Act subject to petition - effective date. This act
147		-	takes effect at 12:01 a.m. on the day following the expiration of the
148		-	ninety-day period after final adjournment of the general assembly; except
149		-	that, if a referendum petition is filed pursuant to section 1 (3) of article V
150		-	of the state constitution against this act or an item, section, or part of this act
151		-	within such period, then the act, item, section, or part will not take effect
152		-	unless approved by the people at the general election to be held in
153		-	PAGE 4-SENATE BILL 22-006 November 2022 and, in such case, will take effect on the date of the official
154		-	declaration of the vote thereon by the governor.
155		-	____________________________ ____________________________
156		-	Steve Fenberg Alec Garnett
157		-	PRESIDENT OF SPEAKER OF THE HOUSE
158		-	THE SENATE OF REPRESENTATIVES
159		-	____________________________ ____________________________
160		-	Cindi L. Markwell Robin Jones
161		-	SECRETARY OF CHIEF CLERK OF THE HOUSE
162		-	THE SENATE OF REPRESENTATIVES
163		-	APPROVED________________________________________
164		-	(Date and Time)
165		-	_________________________________________
166		-	Jared S. Polis
167		-	GOVERNOR OF THE STATE OF COLORADO
168		-	PAGE 5-SENATE BILL 22-006
	146	+	MADE BY HOUSE BILL 19-1245,8
	147	+	ENACTED IN 2019, which amount the state treasurer shall credit to the9
	148	+	housing development grant fund created in section 24-32-721 (1). 10
	149	+	SECTION
	150	+	5. Appropriation. (1) For the 2022-23 state fiscal11
	151	+	year, $61,980 is appropriated to the department of revenue. This12
	152	+	appropriation is from the general fund. To implement this act, the13
	153	+	department may use this appropriation as follows:14
	154	+	(a) $16,875 for tax administration IT system (GenTax) support; 15
	155	+	(b) $6,400 for use by the executive director's office for personal16
	156	+	services;17
	157	+	(c) $33,705 for use by the taxation services division for personal18
	158	+	services; and19
	159	+	(d) $5,000 for use by the taxation services division for operating20
	160	+	expenses.21
	161	+	SECTION 6. Act subject to petition - effective date. This act22
	162	+	takes effect at 12:01 a.m. on the day following the expiration of the23
	163	+	ninety-day period after final adjournment of the general assembly; except24
	164	+	that, if a referendum petition is filed pursuant to section 1 (3) of article V25
	165	+	of the state constitution against this act or an item, section, or part of this26
	166	+	act within such period, then the act, item, section, or part will not take27
	167	+	006
	168	+	-5- effect unless approved by the people at the general election to be held in1
	169	+	November 2022 and, in such case, will take effect on the date of the2
	170	+	official declaration of the vote thereon by the governor.3
	171	+	006
	172	+	-6-