Colorado – Bill to Expand Nexus Provisions Introduced

SALT Report 2388 – The Colorado House of Representatives introduced a Bill that, if passed, will amend and expand the state’s existing sales and use tax nexus provisions. House Bill 1312 will modify these provisions by:

  • Expanding the types of activities that create nexus with the state if they are conducted by a person that already has a substantial nexus with Colorado, other than a common carrier, pursuant to an agreement or arrangement with an out-of-state retailer,
  • Clarifying that the expanded nexus provisions create a rebuttable presumption that certain specified activities create substantial nexus for the out-of-state retailer,
  • Requiring legislative approval of any agreement, executive order, or contract by the state that relieves an out-of-state retailer or an affiliated person of its obligation to collect sales and use tax even if the retailer or an affiliated person has substantial nexus,
  • Requiring an out-of-state retailer to collect and remit sales and use taxes if that retailer contracts with the state for the sale of tangible personal property or taxable services,
  • Limiting the effect of the expanded nexus provisions to sales and use tax by stipulating that the nexus does not apply to franchise, income, or other taxes, and
  • For local sales or use taxes, requiring that the activity that creates nexus for the out-of-state retailer occur within the boundaries of the local taxing jurisdiction

For Further Information

Colorado House of Representatives – House Bill 1312