The Colorado Department of Revenue held a public rulemaking hearing concerning Rule 39-21-112(3.5), that once finalized, would provide guidance on the state’s use tax notice and reporting requirements.
The current version of the proposed rule largely follows an emergency rule adopted on June 30, 2017. There are, however, changes from the version of the rule adopted in 2010 (shortly after the use tax notice and reporting requirements were enacted).
After years of litigation, Colorado’s use tax notice and reporting requirements became effective on July 1, 2017. Under these requirements, retailers that do not collect sales or use tax on sales into Colorado (non-collecting retailers) must:
Non-collecting retailers that violate the notice and reporting requirements are subject to a $5 penalty for each failure to provide the required transactional notice; a $10 penalty for each failure to provide an annual statement to the customer; and a $10 penalty for each customer that should have been included in the annual report to the Department.
Read an August 2017 report [PDF 118 KB] prepared by KPMG LLP
<p>© 2018 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.</p> <p>KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.</p>
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.