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HB 22-1027

signed

Sales Tax Destination Sourcing Rules Exception

Plain-English Summary

AI-generated

House Bill 22-1027 extends a sales tax rule for small retailers in Colorado. Currently, these businesses can charge taxes based on their own location rather than the buyer's address, but this exception was set to end soon. The bill delays ending this exception until October 1, 2022, helping small retailers by allowing them more time to adjust to new tax rules. Since it has been signed into law, these small businesses can continue using their own location for sales tax purposes until the extended deadline.

Official Summary

State sales tax is currently calculated based on the buyer's address when the taxable product or service is delivered to a consumer, and this is known as destination sourcing. There is an exception that allows small retailers with less than $100,000 of retail sales to source their sales to the business' location regardless of where a purchaser receives the tangible personal property or service. The act extends the repeal of this exception from February 1, 2022, until October 1, 2022. (Note: This summary applies to this bill as enacted.)

Details

Chamber
House
First action
2022-01-31
Latest action
2022-01-12
Last action desc.
Introduced In House - Assigned to Business Affairs & Labor
OpenStates
View source ↗

Sponsors

Related Legislation

This bill affects (10)

amends
HB 17-1127(2017A)· failed
Exempt Feminine Hygiene Products From Sales Tax
amends
SB 17-205(2017A)· failed
Multimodal Transportation Infrastructure Funding
amends
HB 17-1009(2017A)· failed
Restore Nonessential Articles Tax Exemptions
amends
SB 17-267(2017A)· signed
Sustainability Of Rural Colorado
amends
HB 18-1083(2018A)· signed
On-demand Air Carriers Sales And Use Tax Exemption
amends
HB 17-1195(2017A)· failed
Create State Sales Tax Exemption For Diapers
amends
SB 17-285(2017A)· failed
Downtown Development Authorities Fairness Act
amends
HB 18-1315(2018A)· signed
Manufactured Home Sales Tax Exemption
amends
HB 18-1062(2018A)· signed
Sales Tax On Retail Marijuana
amends
HB 17-1242(2017A)· failed
New Transportation Infrastructure Funding Revenue

Affected by (22)

amends
HB 22-1062(2022A)· signed
Expand Sales And Use Tax Exemption For Food
relates
HB 22-1055(2022A)· signed
Sales Tax Exemption Essential Hygiene Products
relates
SB 24-228(2024A)· signed
TABOR Refund Mechanisms
relates
SB 22-138(2022A)· signed
Reduce Greenhouse Gas Emissions In Colorado
relates
SB 23-055(2023A)· signed
Car Sharing Program Sales Use And Ownership Tax
relates
HB 22-1242(2022A)· signed
Regulate Tiny Homes Manufacture Sale And Install
relates
HB 26-1270(2026A)· failed
Ownership of Agricultural Data
relates
HB 26-1030(2026A)· failed
Data Center & Utility Modernization
relates
HB 22-1109(2022A)· signed
On-demand Air Carrier Aircraft Sales Tax Exemption
relates
HB 24-1018(2024A)· signed
College Textbook Sales Use Tax Exemption
relates
HB 23-1272(2023A)· signed
Tax Policy That Advances Decarbonization
relates
SB 23-016(2023A)· signed
Greenhouse Gas Emission Reduction Measures
relates
SB 24-025(2024A)· signed
Update Local Government Sales & UseTax Collection
relates
HB 24-1027(2024A)· signed
Exemption for Children's Products
relates
HB 24-1036(2024A)· signed
Adjusting Certain Tax Expenditures
relates
HB 24-1349(2024A)· signed
Firearms & Ammunition Excise Tax
relates
HB 26-1065(2026A)· signed
Transit and Housing Investment Zones
relates
HB 25-1296(2025A)· signed
Tax Expenditure Adjustment
relates
HB 26-1223(2026A)· signed
Modifying Certain Tax Expenditures
relates
HB 26-1048(2026A)· signed
Back-to-School Sales Tax Holiday
relates
SB 22-051(2022A)· signed
Policies To Reduce Emissions From Built Environment
relates
SB 25-026(2025A)· signed
Adjusting Certain Tax Expenditures

Votes

BILL
2022-01-28 · Senate · passYes: 33 · No: 0 · Other:
COW *
2022-01-27 · Senate · failYes: 0 · No: 0 · Other:
BILL
2022-01-24 · House · passYes: 64 · No: 0 · Other: