SB 24-023

Senate Bill 24-023 protects businesses that use Colorado’s GIS database to calculate sales and use taxes from penalties if the underpayment or failure to pay taxes is due to errors in the database. The bill requires the Department of Revenue to correct any inaccuracies reported by local taxing jurisdictions within 30 days and ensures the database's accuracy rate is at least 95%. This law was signed by the governor on April 19, 2024, and became effective immediately on that same date.

Official Summary

The department of revenue (department) owns, maintains, and provides to vendors a GIS database that enables vendors to determine the jurisdictions to which sales or use tax is owed and to calculate appropriate sales and use tax rates for individual addresses. The act establishes that any vendor that properly uses and reasonably relies on the information in the GIS database to determine the tax rate and local taxing jurisdictions to which sales or use tax is owed is held harmless in an audit by a local taxing jurisdiction for an underpayment of or failure to remit a tax, charge, or fee if the underpayment or failure to pay results solely from an error or omission in the GIS database data. The act requires the department to update the GIS database within 30 days after receipt of updated or corrected information from a local taxing jurisdiction, provide a reasonably convenient method for a local taxing jurisdiction to report an error in the GIS database data, and ensure that the jurisdictional boundaries and tax rates data is at least 95% accurate. APPROVED by Governor April 19, 2024 EFFECTIVE April 19, 2024(Note: This summary applies to this bill as enacted.)

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