SALT Report 3308 – In a decision released March 13, 2014, the Colorado Court of Appeals affirmed lower court decisions denying refund claims of sales taxes related to claimed bad debts. The taxpayer’s claims related to the assignment of sales contracts from dealers upon which sales taxes were paid. The assignor then proceeded to collect payments from the consumer. In cases of consumer default the assignor applied for refunds of sales taxes previously paid. The Court of Appeals found that the taxpayer lacked standing to recover amounts so paid.
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