SENATE BILL 25-046
BY SENATOR(S) Bridges and Kipp, Amabile, Cutter, Exum, Jodeh,
Michaelson Jenet, Snyder, Coleman;
also REPRESENTATIVE(S) Taggart, Bird, Boesenecker, Duran, Lindstedt,
Phillips, Titone, McCluskie.
C
ONCERNING LOCAL GOVERNMENT SALES OR USE TAX INVESTIGATIONS ,
AND, IN CONNECTION THEREWITH , ESTABLISHING UNIFORM
CONFIDENTIALITY STANDARDS FOR THE PROTECTION OF TAXPAYER
INFORMATION
.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. In Colorado Revised Statutes, add 29-2-217 as
follows:
29-2-217. Local taxing jurisdictions sales or use tax
investigations - confidentiality requirements - limitations - enforcement
- definitions. (1) A
S USED IN THIS SECTION, UNLESS THE CONTEXT
OTHERWISE REQUIRES
:
(a) "L
OCAL TAXING JURISDICTION" HAS THE SAME MEANING AS SET
FORTH IN SECTION
39-26-802.7 (1)(b) AND INCLUDES A:
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. (I) STATUTORY LOCAL GOVERNMENT ;
(II) S
PECIAL DISTRICT;
(III) R
EQUESTING HOME RULE JURISDICTION ; AND
(IV) SELF-COLLECTING HOME RULE JURISDICTION .
(b) "S
ALES OR USE TAX" INCLUDES ALL LOCAL SALES OR USE TAXES
AND ALL TAXES DESCRIBED IN SECTION
29-2-201 (8).
(c) "S
ELF-COLLECTING HOME RULE JURISDICTION " MEANS A HOME
RULE JURISDICTION THAT IS NOT A REQUESTING HOME RULE JURISDICTION
.
(d) "T
AXPAYER" HAS THE SAME MEANING AS SET FORTH IN SECTION
39-21-101 (4). "TAXPAYER" INCLUDES A "RETAILER" OR "VENDOR" AS
DEFINED IN SECTION
39-26-102 (8).
(e) (I) "T
HIRD-PARTY AUDITOR" MEANS A PRIVATE INDIVIDUAL OR
ENTITY THAT IS NOT AN OFFICIAL
, EMPLOYEE, HEARING OFFICER, OR
ATTORNEY
, OR OTHERWISE A PUBLIC AGENT OF A LOCAL TAXING
JURISDICTION
, THAT CONDUCTS A SALES OR USE TAX INVESTIGATION OF A
TAXPAYER ON BEHALF OF A LOCAL TAXING JURISDICTION
.
(II) F
OR PURPOSES OF THIS SUBSECTION (1)(e), "PUBLIC AGENT OF A
LOCAL TAXING JURISDICTION
" INCLUDES:
(A) A
N OFFICIAL, EMPLOYEE, OR AGENT OF THE DEPARTMENT OF
REVENUE WHO CONDUCTS A SALES OR USE TAX INVESTIGATION OF A
TAXPAYER ON BEHALF OF A LOCAL TAXING JURISDICTION IN ACCORDANCE
WITH THIS PART
2 AND ARTICLE 21 OF TITLE 39; AND
(B) AN OFFICIAL, EMPLOYEE, OR AGENT OF THE MULTISTATE TAX
COMMISSION
, ESTABLISHED IN SECTION 24-60-1301, WHO CONDUCTS A SALES
OR USE TAX INVESTIGATION OF A TAXPAYER ON BEHALF OF A LOCAL TAXING
JURISDICTION PURSUANT TO SECTION
24-60-1306, AND IN ACCORDANCE
WITH THE MULTISTATE TAX COMPACT
, SET FORTH IN PART 13 OF ARTICLE 60
OF TITLE 24.
PAGE 2-SENATE BILL 25-046 (2) (a) EXCEPT IN ACCORDANCE WITH A JUDICIAL ORDER OR AS
OTHERWISE PROVIDED IN SUBSECTIONS
(2)(b)(I) TO (2)(b)(IV) OR (3) OF THIS
SECTION
, A THIRD-PARTY AUDITOR SHALL NOT DIVULGE OR MAKE KNOWN IN
ANY WAY ANY INFORMATION OBTAINED FROM A SALES OR USE TAX
INVESTIGATION CONDUCTED BY THE THIRD
-PARTY AUDITOR ON BEHALF OF
A LOCAL TAXING JURISDICTION
, OR DISCLOSED IN ANY DOCUMENT, REPORT,
OR RETURN FILED IN CONNECTION WITH ANY OF THE TAXES OR FEES WITHIN
THE SCOPE OF THIS PART
2. A THIRD-PARTY AUDITOR CHARGED WITH THE
CUSTODY OF SUCH INVESTIGATORY INFORMATION
, DOCUMENTS, REPORTS,
AND RETURNS SHALL NOT BE REQUIRED TO PRODUCE ANY SUCH
INFORMATION OR DOCUMENTATION IN ANY ACTION OR PROCEEDING IN ANY
COURT EXCEPT IN AN ACTION OR PROCEEDING UNDER THE PROVISIONS OF
THIS PART
2 OR PART 3 OF THIS ARTICLE 2 TO WHICH THE LOCAL TAXING
JURISDICTION AUTHORIZING THE SALES OR USE TAX INVESTIGATION IS A
PARTY
, IN WHICH EVENT THE COURT MAY REQUIRE THE PRODUCTION OF , AND
MAY ADMIT IN EVIDENCE
, SO MUCH OF THE INFORMATION AND
DOCUMENTATION AS IS PERTINENT TO THE ACTION OR PROCEEDING
.
(b) N
OTWITHSTANDING SUBSECTION (2)(a) OF THIS SECTION, A
THIRD
-PARTY AUDITOR MAY:
(I) D
ISCLOSE THE CONTENTS OF ANY REPORT PREPARED BY THE
THIRD
-PARTY AUDITOR, AND ANY INFORMATION, DOCUMENTS, REPORTS, AND
RETURNS RELIED UPON IN PREPARING THE REPORT
, TO AN OFFICIAL,
EMPLOYEE, HEARING OFFICER, ATTORNEY, OR OTHER PUBLIC AGENT OF THE
LOCAL TAXING JURISDICTION AUTHORIZED TO RECEIVE SUCH INFORMATION
IN CONNECTION WITH THE LOCAL TAXING JURISDICTION
'S SALES OR USE TAX
INVESTIGATION PERFORMED BY THE THIRD
-PARTY AUDITOR;
(II) D
ELIVER TO A TAXPAYER OR THE TAXPAYER'S DULY AUTHORIZED
REPRESENTATIVE A COPY OF ANY RETURN OR REPORT FILED IN CONNECTION
WITH THE TAXPAYER
'S TAXES OR FEES WITHIN THE SCOPE OF THIS PART 2;
(III) P
ROVIDE INFORMATION TO THE DEPARTMENT FOR THE
PUBLICATION BY THE DEPARTMENT OF STATISTICS IN ACCORDANCE WITH
SECTION
39-21-113 (5); AND
(IV) PROVIDE INFORMATION TO THE DEPARTMENT AND THE FEDERAL
INTERNAL REVENUE SERVICE AS NECESSARY AND PERTINENT TO A
TAXPAYER
'S COMPLIANCE OR FAILURE TO COMPLY WITH STATE OR FEDERAL
PAGE 3-SENATE BILL 25-046 TAX LAW.
(3) A
TAXPAYER WHO FILED A DOCUMENT , REPORT, OR RETURN WITH
THE STATE OR A LOCAL TAXING JURISDICTION MAY WAIVE THE
CONFIDENTIALITY PROTECTIONS SET FORTH IN SUBSECTION
(2)(a) OF THIS
SECTION AS TO SUCH DOCUMENT
, REPORT, OR RETURN. SUCH WAIVER MUST
BE VOLUNTARY
, IN WRITING, AND SIGNED BY THE TAXPAYER OR THE
TAXPAYER
'S DULY AUTHORIZED REPRESENTATIVE .
(4) A
NY THIRD-PARTY AUDITOR, INCLUDING ANY OFFICIAL ,
EMPLOYEE, ATTORNEY, OR OTHER AGENT OF A THIRD-PARTY AUDITOR, WHO
WILLFULLY VIOLATES ANY OF THE PROVISIONS OF THIS SECTION IS GUILTY OF
A MISDEMEANOR AND
, UPON CONVICTION THEREOF, SHALL BE PUNISHED BY
A FINE OF NOT MORE THAN ONE THOUSAND DOLLARS PER VIOLATION
.
SECTION 2. In Colorado Revised Statutes, 39-21-113, amend as
it will become effective July 1, 2025, (35) as follows:
39-21-113. Reports and returns - rule - repeal.
(35) Notwithstanding the confidentiality requirements in this section, the
executive director has the authority to share taxpayer information as
necessary pursuant to section 29-2-208
SECTIONS 29-2-208 AND 29-2-213
TO 29-2-215.
SECTION 3. Effective date. This act takes effect July 1, 2025.
SECTION 4. Safety clause. The general assembly finds,
determines, and declares that this act is necessary for the immediate
preservation of the public peace, health, or safety or for appropriations for
PAGE 4-SENATE BILL 25-046 the support and maintenance of the departments of the state and state
institutions.
____________________________ ____________________________
James Rashad Coleman, Sr. Julie McCluskie
PRESIDENT OF SPEAKER OF THE HOUSE
THE SENATE OF REPRESENTATIVES
____________________________ ____________________________
Esther van Mourik Vanessa Reilly
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 25-046