Colorado – Legislation Requires Uniform Sales and Use Tax Base Study

SALT Report 2594 – Recently enacted legislation in Colorado requires that the Department of Revenue collaborate with various state organizations as well as representatives from counties and municipalities to study the possibility of establishing a uniform sales and use tax base throughout the state.

The legislation requires that by December 31, 2013 the Department shall provide a report to the General Assembly that:

  • Identifies the sales tax exemptions for each jurisdiction across the state,
  • Estimates the revenue associated with each exemption,
  • Determines how a uniform sales tax base can be revenue-neutral for all state and local taxing jurisdictions, and
  • Makes recommendations to the General Assembly to establish a uniform sales tax base

In addition, the Department must include recommendations that establish a uniform definition of tangible personal property, a uniform list of exempt items and their definitions, and rate changes that would be necessary to achieve revenue neutrality in the state.

For Further Information

Colorado General Assembly – House Bill 1288, Laws 2013