Colorado Finalizes Emergency Rule on Reporting for Non Collecting Retailers

Charles Maniace
July 3, 2017

As previously reported in this forum, on July 1, 2017, Colorado’s long anticipated notice and reporting requirements for non-collecting retailers goes into effect. In the last few days, Colorado moved to finalize the details as to how the rule will be enforced, which are described in Emergency Rule 39.21-112.35.

This law requires retailers that do not have sales tax nexus but make $100K or more in annual sales to Colorado customers to report transactions to the state as well as notify purchasers of their use tax obligation. During the brief period that Colorado afforded interested parties time to comment on their proposed rule, Sovos submitted a request to clarify a number of points, including whether wholesale sales count toward the $100k threshold. In the final rule, Colorado adjusted their definition of “Colorado Reportable Purchase” and “Total Gross Sales” to explain that exempt sales of tangible personal property may be excluded from the calculation. While not specifically utilizing the word “resale” or “wholesale,” our interpretation of the revised rule is that such sales need not be counted.

 As to what’s next, at some point prior to November 1, Colorado is required to publish the transmittal schema for the Annual Customer Information Report which is first due on March 1, 2018.

The post Colorado Finalizes Emergency Rule on Reporting for Non Collecting Retailers appeared first on Sovos.

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Charles Maniace

Chuck is Vice President –Regulatory Analysis & Design at Sovos, a global provider of software that safeguards businesses from the burden and risk of modern tax. An attorney by trade, he leads a team of attorneys and tax professionals that provide the tax and regulatory content that keeps Sovos customers continually compliant. Over his 20-year career in tax and regulatory automation, he has provided analysis to the Wall Street Journal, NBC, Bloomberg and more. Chuck has also been named to the Accounting Today list of Top 100 Most Influential People four times.
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