Welcome! This is my first entry for the new Local Sales Tax/Home Rule Issues blog category. As such, I thought I would outline issues to be addressed in future submissions. I also encourage you let me know about specific topics of interest.
Colorado is likely the most difficult state in the country for sales and use taxes because of its Home Rule cities. Under the State Constitution, about 65 cities in the state (and counting) qualify for Home Rule status, which allows them to levy and administer their own sales and use taxes and audits, and to define what is and is not taxable within their city limits.
As a result what is taxable on one side of a street may be exempt across the street (literally). And because the US Postal Service has not assigned zip codes that coincide with city, county and/or special district boundaries, one must determine the tax rate for every customer using only their street address. As one example, in a large business area near where I live, one zip code is used, but it covers portions of five cities and an unincorporated area.
This structure creates an almost endless list of complications for businesses in the state, not to mention out-of-state businesses selling to Colorado customers. In future submissions I will discuss issues relating to individual and multiple cities and industries. On occasion, I also will discuss issues related to Colorado state, county and/or special district taxes rather than just city taxes. This will be a diverse discussion, for reasons that will become apparent.
Before Colorado became a state in 1876, it was considered part of the “Wild West”. When it comes to sales and use taxes, “Wild West” remains an apt description.
If you have questions about CO Home Rule issues - or suggestions about topics you'd like to see covered in the Local Sales Tax / Home Rule Issues blog category - please feel free to send me an e-mail (Keith Crichton) - or post a comment below.
Other recent “Local Sales Tax / Home Rule Issues” posts by Keith Crichton, CPA:
- Colorado Statute of Limitations: Watch Dates in Home Rule Cities
- Colorado Redefines Nexus: The Law of Unintended Consequences
- Tenth Circuit Reverses Colorado Permanent Injunction
- Colorado Taxation of Cloud Computing or “SAAS”
- Colorado Home Rule Creates Nation’s Most Complicated Tax Rules
Note: Keith Crichton is no longer accepting new comments nor questions. While a new blogger will be taking over this category in the near future, please use the Site's SEARCH bar in the interim to locate other helpful information.