COVID-19 Relief for Bars, Restaurants and Mobile Food Retailers

HB20b-1004 allows a temporary deduction from state net taxable sales for qualifying retailers primarily in the bar, restaurant and the mobile food services industries. The resulting state sales tax is allowed to be retained by the business permanently to provide assistance from business disruptions due to COVID-19 pandemic.

Who Qualifies? 

The special deduction does not apply to any taxes imposed by any state-administered city, county, or special district. Retailers should contact self-collecting home-rule cities regarding any similar programs they may offer. Eligible retailers are required to collect all applicable state and state-administered local sales taxes, file returns on time, and pay all local sales taxes (in addition to state sales taxes in excess of the amount related to the special deduction).

What if You Already Filed a Sales Tax Return?

If your business qualifies for the special deduction allowed by HB20b-1004, but you have already filed and paid your return for the November 2020 filing period, you may apply to the Department for a refund. If you file using Revenue Online using the instructions below the Department will make every effort to expedite these requests. However, depending on volumes of refund claims received, please allow up to six weeks from the time the request is submitted. 

Note: Be sure that you are using the procedure below for the November 2020 filing period. This filing period includes tax collected on sales that you made during the month of November 2020, which is due on or before December 20, 2020.

 

File Using Revenue Online (Fastest)

To ensure that your refund claim is prioritized take the following actions:

  1. File an amended sales tax return for the period.
  2. Complete a Claim for Refund Form (DR 0137). Note clearly in the "Refund Request Reason" that the refund is being requested because the business qualifies for the special deduction allowed by HB20b-1004 but the return was filed and paid early.
  3.  Attach your Claim for Refund to a secure web message using Revenue Online. Be sure to include the following information:
    • Account Type: Sales Tax
    • Message Type: Refund Question
    • Subject: Special Deduction HB20b-1004

 

File By Paper (Delays May Occur)
  • File an amended sales tax return for the period. 
  • Complete and submit a Claim for Refund Form (DR 0137). Note clearly in the "Refund Request Reason" that the refund is being requested because the business qualifies for the special deduction allowed by HB20b-1004 but the return was filed and paid early.
  • Mail the claim form to:
Colorado Department of Revenue
Sales/Use Tax Accounting Section, Room 144
P.O. Box 17087
Denver, CO 80217-0087