When even tax experts call something complicated, you know it’s a problem.
Colorado’s legislature is aiming to make the state’s convoluted sales and use tax easier on businesses.
The Colorado House of Representatives has introduced a bill that would create a task force to review simplifying the sales and use tax.
The task force would study sales and use tax simplification between the state and local governments, and in particular between the state and home-rule jurisdictions.
“Colorado has a unique and complex state and local sales tax system,” the bill says. Because
home-rule cities are allowed to establish their own sales and use tax systems, the lack of uniformity across the state can be especially difficult on businesses with several locations, the bill says.
One option the task force would consider is using a single sales and use tax return for 20 state and local taxing jurisdictions.
The task force would comprise legislative members and state and local tax experts, and would be able to seek and accept funding to help drive research and study of tax simplification. The force would be required to report to the legislature and authorized to recommend legislation.
Sponsors of the bill are Reps. Tracy Kraft-Tharp and Lang Sias, and Sens. Cheri Jahn and Tim Neville. The bill is now under consideration in the House.