Colorado SB 17-238: Notifications Regarding Online Purchases

Bill Text

First Regular Session
Seventy-first General Assembly
STATE OF COLORADO
REENGROSSED
This Version Includes All Amendments
Adopted in the House of Introduction
LLS NO. 17-1026.01 Esther van Mourik x4215 SENATE BILL 17-238
Senate Committees House Committees
Finance
Appropriations
A BILL FOR AN ACT
CONCERNING THE NOTIFICATIONS THAT RETAILERS THAT DO NOT101
COLLECT COLORADO SALES TAX MUST PROVIDE, AND, IN102
CONNECTION THEREWITH, REDUCING AN APPROPRIATION.103
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov.)
Current law requires retailers that do not collect Colorado sales tax
to provide notification to all Colorado purchasers showing certain
information. The notification must be sent separately to all Colorado
purchasers by first-class mail. The bill specifies that the notification must
instead be sent to the email address used to complete the purchase and not
SENATE
3rd Reading Unamended
April 17, 2017
SENATE
Amended 2nd Reading
April 13, 2017
SENATE SPONSORSHIP
Holbert,
HOUSE SPONSORSHIP
Neville P. and Wist, Everett
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters indicate new material to be added to existing statute.
Dashes through the words indicate deletions from existing statute.

be included with any other emails to the purchaser regarding the
purchase.
The bill also repeals the notification requirement that the retailer
that does not collect Colorado sales tax must send to the department of
revenue for each Colorado purchaser that specifies the total amount paid
for Colorado purchases.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 39-21-112, amend2
(3.5)(d)(I)(B); repeal (3.5)(d)(II) and (3.5)(d)(III)(B); and add (3.5)(e)3
as follows:4
39-21-112. Duties and powers of executive director.5
(3.5) (d) (I) (B) The notification specified in sub-subparagraph (A) of6
this subparagraph (I) SUBSECTION (3.5)(d)(I)(A) OF THIS SECTION shall be7
sent separately to all Colorado purchasers by first-class mail TO THE8
EMAIL ADDRESS USED TO COMPLETE THE PURCHASE and shall not be9
included with any other shipments EMAILS TO THE PURCHASER10
REGARDING THE PURCHASE. The notification shall include the words11
"Important Tax Document Enclosed". on the exterior of the mailing. The12
notification shall include the name of the retailer.13
(II) (A) Each retailer that does not collect Colorado sales tax shall14
file an annual statement for each purchaser to the department of revenue15
on such forms as are provided or approved by the department showing the16
total amount paid for Colorado purchases of such purchasers during the17
preceding calendar year or any portion thereof, and such annual statement18
shall be filed on or before March 1 of each year.19
(B) The executive director of the department of revenue may20
require any retailer that does not collect Colorado sales tax that makes21
total Colorado sales of more than one hundred thousand dollars in a year22
238-2-

to file the annual statement described in sub-subparagraph (A) of this1
subparagraph (II) by magnetic media or another machine-readable form2
for that year.3
(III) (B) Failure to file the annual statement required in4
sub-subparagraph (A) of subparagraph (II) of this paragraph (d) shall5
subject the retailer to a penalty of ten dollars for each purchaser that6
should have been included in such annual statement, unless the retailer7
shows reasonable cause for such failure.8
(e) (I) IN ORDER TO PROPERLY EDUCATE COLORADO TAXPAYERS9
OF THEIR OBLIGATION TO PAY SALES TAX ON INTERNET PURCHASES, THE10
DEPARTMENT SHALL CREATE A "KNOW WHAT YOU OWE" EDUCATIONAL11
CAMPAIGN ON THEIR WEBSITE COMMENCING ON THE EFFECTIVE DATE OF12
THIS SUBSECTION (3.5)(e) THROUGH JULY 2021. THE CAMPAIGN MUST13
EXPLAIN THAT PURCHASING ITEMS FROM AN OUT-OF-STATE RETAILER14
SUCH AS THOSE PURCHASED OVER THE INTERNET OR BY CATALOG MAY15
REQUIRE TAXES TO BE PAID TO THE STATE AND CERTAIN SPECIAL DISTRICTS16
ON THE PURCHASE PRICE. THE CAMPAIGN MUST ALSO DISPLAY THE17
"SPECIAL DISTRICT RATES AND BOUNDARIES TABLE". THE CAMPAIGN18
MUST BE WRITTEN AT AN 4TH GRADE READING LEVEL SO ALL TAXPAYERS19
CAN UNDERSTAND HOW TO CALCULATE THE TAXES THEY OWE ON THEIR20
OUT-OF-STATE RETAIL PURCHASES FROM ONLINE AND BY CATALOG21
RETAILERS THAT DO NOT COLLECT COLORADO SALES TAX.22
(II) COMMENCING WITH THE 2018 COLORADO INCOME TAX FILING23
GUIDE BOOKLET, AND EACH INCOME TAX FILING GUIDE BOOKLET24
THEREAFTER, THE DEPARTMENT SHALL ADD A DEDICATED "KNOW WHAT25
YOU OWE" SECTION TO EACH BOOKLET SENT TO ALL TAXPAYERS. THE26
"KNOW WHAT YOU OWE" SECTION MUST EXPLAIN THAT PURCHASING27
238-3-

ITEMS FROM AN OUT-OF-STATE RETAILER OVER THE INTERNET OR BY1
CATALOG MAY REQUIRE