HB 22-1027

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.)

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