HB 23-1017

HB 23-1017, also known as the Electronic Sales And Use Tax Simplification System, aims to make Colorado's sales and use tax system easier for retailers. It requires the state Department of Revenue to update its online portal (SUTS) by adding features like automatic local account numbers, a simpler user interface, bulk testing options, and more detailed information about taxes and deductions. The bill also bans any extra fees for using SUTS and mandates that the department promote this system to increase retailer participation and compliance. This bill was signed into law on June 5, 2023, and became effective on August 7, 2023.

Official Summary

As part of an effort to simplify the sales and use tax system, the department of revenue (department) created the electronic sales and use tax simplification system (SUTS), which is a one-stop portal designed to facilitate the collection and remittance of sales and use tax. As soon as possible, but no later than January 1, 2025, the act requires the department to modify SUTS: To populate a local account number on all returns and summary reports, if the retailer filing the return has a number and provides the number in SUTS; By developing a simplified user interface for filing returns as an alternative to the current spreadsheet method; To provide retailers with a bulk testing option for address files; and To include additional use taxes, additional information about deductions, filtering options, and certain tabs. With the exception of charges for payments by credit cards, the act prohibits the department from imposing a convenience fee or any other type of charge for a payment through SUTS and from passing those charges on to local taxing jurisdictions. The act also requires the department to: Create a campaign to promote SUTS for the purpose of increasing the awareness, participation, and compliance by retailers and local taxing jurisdictions; and Solicit and consider feedback from interested stakeholders about enhancements to SUTS that lead to greater local taxing jurisdiction participation and greater compliance by retailers. APPROVED by Governor June 5, 2023 EFFECTIVE August 7, 2023 NOTE: This act was passed without a safety clause and takes effect 90 days after sine die. (Note: This summary applies to this bill as enacted.)

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