The Colorado Division of Income announced Thursday it’s extending the grace interval on its controversial changes to the state’s sales tax collection rules from March 31 to Might 31.
The new laws, which took informal effect Saturday, require all in-state and out-of-state companies that ship taxable merchandise to consumers in Colorado to evaluate, acquire and remit sales taxes based mostly on each buyer’s handle. It’s a dramatic shift from the best way many Colorado retailers did enterprise beforehand: Accumulating taxes on shipped goods based mostly on the jurisdictions they share in widespread with their clients.
The principles have been met with a number of considerations, including how a lot it will value small business to vary their bookkeeping software program, the time it might take to evaluate taxes for the state’s more than 340 taxing jurisdiction and potential aggressive benefits the principles might give out-of-state retailers.
Officers hope the added time before enforcement takes impact will give enterprise house owners more time to get in place to voluntarily adjust to the principles and allow state lawmakers to weigh in on how the state goes about accumulating taxes.
“This additional time will give the state legislature a chance to seek out revolutionary options to streamline and simplify our sales tax assortment legal guidelines in accordance with the needs of the residents of Colorado,” Michael Hartman, government director of the Colorado Department of Revenue, stated in a press release. “We’ll evaluate the need for an additional extension as Might 31 nears.”