In late October, we sent a newsletter regarding major updates to the sales tax rules in Colorado. A new statement from the Colorado Department of Revenue has pushed back the enforcement date of the new rules to allow more time to comply.
Originally, the new sales tax rules were set to apply beginning December 1, 2018. Out-of-state retailers doing business in Colorado will still be required to obtain a state sales tax license and collect sales taxes, but the enforcement deadline has now been extended to May 31, 2019. Note that although collection and remittance of sales taxes is not mandatory until May 31, 2019, businesses not collecting sales tax will still need to send certain notices to their customers and to the Colorado Department of Revenue to report their sales.
An exception is available for out-of-state retailers whose annual Colorado sales are less than $100,000, or who have less than 200 transactions in Colorado per year. Although these businesses are exempt from the sales tax requirements, they may still have to comply with Colorado's use tax reporting requirements.
Enforcement of the new sales tax rules for in-state retailers that require collection and remission of state sales taxes based on the point of delivery has also been extended to May 31, 2019. Despite this extension, the Department is still requesting businesses with the capability to collect and remit sales tax now to begin doing so as quickly as possible.
Employee Spotlight: Carrie G. Cicione
Carrie became a member of the Soukup, Bush & Associates team in December 2017. She graduated summa cum laude from Regis University in May of 2007 with a Bachelor of Science degree in Accounting. She also earned a Bachelor of Science degree in Kinesiology from University of Colorado Boulder in 1997. Carrie prepares individual and business tax returns, and is also a member of the attestation team. Prior to joining the firm, Carrie has worked in both industry and public accounting.
In her free time, Carrie enjoys running and spending time with her husband Steve and their three children Elizabeth, Hannah and Ryan. You might also find Carrie at the baseball field watching Ryan play high school and club baseball.
If you have any questions about how Colorado's new sales tax rules might affect your business, please contact us at (970) 223-2727.