Headache Relief for CO Small Businesses


(April 17) – Rep. Tracy Kraft-Tharp’s bill to seek ways to simplify sales tax collections in Colorado won the unanimous support of the House this morning.

HB17-1216, also sponsored by Rep. Lang Sias, R-Arvada, would convene a three-year task force to study and report annually on ways to streamline local sales tax rates and collection processes across Colorado.

“A simpler, fairer and more predictable system would save time, money and headaches for businesses all across Colorado,” said Rep. Kraft-Tharp, D-Arvada.

In Colorado, the same product is subject to myriad different local sales tax rates, depending on the home address of the purchaser. Every merchant who collects sales taxes is required to have a license from every jurisdiction to which the merchant remits sales taxes. Witnesses testified in committee that computation of local sales taxes across the state is so time- and labor-intensive that many smaller companies try to ignore the law or shun statewide sales efforts, stunting their growth potential.

The House’s 64-0 vote sends the bill to the Senate.

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