SALT Report 3896 – Notification enforcement for out of state retailers selling more than $100,000 a year to Colorado customers is set to begin July 1, 2017.
In 2010, the General Assembly passed House Bill 10-1193 (Notification Rule) requiring out of state retailers who are not collecting sales tax to report specific information to both the Department of Revenue and their Colorado customers. The law was immediately challenged in court and has been held up in litigation for the past six years. A state court also enjoined the enforcement of the new law while it was being litigated in federal court.
On February 22, 2016, the 10th Circuit Court of Appeals issued an opinion upholding the constitutionality of House Bill 10-1193. On Friday, December 9, 2016, the United States Supreme Court declined to hear an appeal of the Court of Appeals decision. By declining to hear the appeal, the Supreme Court effectively affirmed the constitutionality of the law. This means that the Department of Revenue can start enforcing the requirements in House Bill 10-1193.