Colorado – Non-Collecting Retailer Reporting Requirements

SALT Report 3206 – Law HB 10-1193 “establishing reporting requirement for non-collecting retailers [is in effect].”  The law has “until recently been under an injunction prohibiting enforcement, [which means] the Department will not enforce any penalties for failure to comply during the period the injunction was in place.” The injunction was “dissolved on December 10, 2013.”

Non-Collecting Retailer Reporting requirements are to be administered based on the guidelines set forth in Regulation 39-21-112.3.5.  Among the new requirements includes Section 2(a) of Regulation 39-21-112.3.5 that states:

“A non-collecting retailer must give notice to all Colorado purchasers that Colorado sales or use tax is due on all purchases that are not exempt from sales tax. This notice must be provided with respect to each transaction.”

Should HB 10-1193 be subject to another injunction, “the [Department will] provide further guidance regarding enforcement.”

For Further Information:

Notice: Non-Collecting Retailer Reporting Requirements

Regulation 39-21-112.3.5