SB 17-238

Senate Bill 17-238, which has been signed into law, changes how out-of-state retailers who don't collect Colorado sales tax notify Colorado buyers. Instead of mailing a separate notice by first-class mail, these retailers must now send the notification via email to the address used for the purchase. The bill also removes the requirement for retailers to report this information to the state's Department of Revenue and mandates that the department create an educational campaign called "Know What You Owe" on their website to inform Colorado residents about their responsibility to pay sales tax on online purchases made from non-collecting sellers. This affects all Colorado consumers who make online purchases from out-of-state retailers not collecting Colorado sales tax.

Official Summary

Current law requires retailers that do not collect Colorado sales tax to provide notification to all Colorado purchasers showing certain information. The notification must be sent separately to all Colorado purchasers by first-class mail. The bill specifies that the notification must instead be sent to the email address used to complete the purchase and not be included with any other emails to the purchaser regarding the purchase. The bill also repeals the notification requirement that the retailer that does not collect Colorado sales tax must send to the department of revenue for each Colorado purchaser that specifies the total amount paid for Colorado purchases. The bill requires the department of revenue to create a 'Know What You Owe' educational campaign on their website in order to property educate Colorado taxpayers of their obligation to pay sales tax on internet purchases. (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

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