Businesses Can Now Sign Up for SUTS!
The Department has developed a new tool to help taxpayers comply with sales and use tax requirements. The Sales and Use Tax System (SUTS) is a one-stop portal that will allow taxpayers to do all manner of tasks related to collecting and remitting retail sales tax in an easy, automated, and seamless fashion. The Sales & Use Tax System includes a Sales Tax Remittance Portal and a Geographic Information System (GIS).
SUTS will initially be available for businesses with retail sales over $100,000 per year. Additional businesses will be able to begin using the system next year. To sign up, visit Colorado.gov/Revenue/SUTS, then select "Go" under "New Users Register."
Once the system is online and available to all retailers, the Department will implement important changes required by state statute. These include changes to sourcing rules for certain taxpayers. Also, the Department will no longer certify third-party address sourcing databases. However, the use of third-party databases may qualify for the new hold-harmless protection provided under section 39-26-105.2, C.R.S. The provider must be verified to use the most recent information provided by the SUTS database. Taxpayers should check with their providers to determine if they qualify.
The Department will notify taxpayers and tax professionals at least 90 days ahead of these changes, so it is recommended that taxpayers and tax professionals sign up to receive Sales & Use Tax Email Alerts. An email will be sent to email alert subscribers announcing when the 90-day period will begin.
What is SUTS?
SUTS is the new Sales & Use Tax System from the Colorado Department of Revenue. The SUTS System is a one-stop portal that allows you to do all manner of tasks related to collecting and remitting sales and use tax in an easy, automated and seamless fashion. The system has the following capabilities:
- Accurately look up sales and use tax rates by address
- Single point of remittance and a uniform remittance form
- Taxability and exemption matrix
- Ability to calculate tax rates on items with differing tax rates in the same jurisdiction
- A record of the history of any changes
The primary element of the SUTS System is the Remittance Portal. This portal will allow you to file your retail sales tax returns for state, state-collected, and participating home-rule self-collecting taxation jurisdictions in one place.
Geographic Information System (GIS)
Another element of the SUTS System will allow businesses to easily, and with the aid of free technology, identify the correct taxing jurisdictions related to the sale of a taxable good or service. The Geographic Information System (GIS) now allows businesses to look up the specific sales tax rate for an individual address. The GIS not only shows state sales tax information, but it also includes sales tax information for counties, municipalities, and special taxation districts. This system allows for a complete tax rate to be determined so the correct tax is collected from customers in real-time.
Also, if your internal point of sale system supports it, the GIS information can be accessed through an Application Programming Interface (API).This API can automatically reference current tax information directly from the CDOR. Please note that the Department will need to verify that you have registered for an account for the Remittance Portal before using the API. Additionally, in some instances, the base map from Google cannot resolve some queries where, for example, “county road” is abbreviated as C.R. This issue is being investigated by Google Maps staff and should be resolved shortly.