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January 10, 2024 SB 24-025
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 24-0382
Sen. Bridges; Van Winkle
Rep. Kipp; Taggart
Date:
Bill Status:
Fiscal Analyst:
January 10, 2024
Senate Finance
Anna Gerstle | 303-866-4375
anna.gerstle@coleg.gov
Emily Dohrman | 303-866-3446
emily.dohrman@coleg.gov
Bill Topic: UPDATE LOCAL GOVERNMENT SALES & USE TAX COLLECTION
Summary of
Fiscal Impact:
☐ State Revenue
☒ State Expenditure
☐ State Transfer
☐ TABOR Refund
☒ Local Government
☐ Statutory Public Entity
The bill modernizes and revises the state laws that govern state administration of
local sales or use taxes. It increases state and local workload on an ongoing basis.
Appropriation
Summary:
No appropriation is required.
Fiscal Note
Status:
The fiscal note reflects the introduced bill, which was recommended by the Sales and
Use Tax Simplification Task Force.
Summary of Legislation
The Department of Revenue administers local sales or use taxes that are imposed by statutory
local governments, and if requested, by home rule jurisdictions (local jurisdictions). The bill
modernizes and revises the state laws that govern state administration of local sales or use
taxes, including:
making DOR administration of local sales and use taxes consistent with the administration of
the state sales tax;
specifying procedures for local jurisdictions to notify DOR of any changes to sales or use
taxes;
permitting local jurisdictions to allow retailers to retain a percentage of the amount remitted
to cover the retailer’s expenses in collecting the fee;
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January 10, 2024 SB 24-025
aligns the dispute resolution process for local sales and use tax administration with state sales
tax administration, and establishes procedures for if a local tax collected by the department is
erroneously remitted to the wrong taxing entity;
clarifying that vendors who use the state GIS database to determine the jurisdictions to which
taxes are owed are held harmless for any tax or fee liability that would be due as a result of an
error in the database;
requiring local jurisdictions to identify liaisons to coordinate with DOR related to the collection
of their sales and use tax;
repealing a current law provision requiring that if voters reject a county sales and use tax
measure, it cannot be submitted again for one year and 350 days; and
clarifying which sales and use taxes can be administered by DOR.
State Expenditures
The bill increases workload and costs for the DOR to adjust reporting procedures and modify
the SUTS system and GIS databases. The work can be accomplished through current
appropriations, as currently planned work on both systems will be able to include the changes
required by the bill. Workload will also include communicating with and reporting return
information to local taxing jurisdictions. The bill may also minimally increase legal services
required for rulemaking, provided by the Department of Law. This workload does not require a
change in appropriations.
Local Government
The bill may increase workload for local taxing entities to modify their procedures to align with
the bill’s requirements. Any additional workload is expected to be minimal. The bill may also
reduce revenue for any local taxing entity that chooses to institute a vendor fee that allows
retailers to retain a percent of collections for administrative costs.
Effective Date
The bill takes effect July 1, 2025, assuming no referendum petition is filed. It applies to any
taxable event occurring on or after that date.
State and Local Government Contacts
Counties Law Municipalities
Personnel Revenue Special District Association
The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each
fiscal year. For additional information about fiscal notes, please visit: leg.colorado.gov/fiscalnotes.