Retailers can use the geographic information system (GIS) database, accessible through the Department’s website, to determine the local taxing jurisdictions to which taxes are owed, and calculate appropriate sales and use tax rates for individual addresses. Additional information about the GIS database can be found online at Tax.Colorado.gov/GIS-info.
Any vendor that uses the data contained in the GIS database to determine the tax rate and the local taxing jurisdictions to which sales or use tax is owed is held harmless in an audit by the Department or any local taxing jurisdiction for any local tax, charge, or fee liability that otherwise would be due solely as a result of an error or omission in the GIS database data. To be held harmless, a vendor must collect, retain, and produce upon request documentation reasonably sufficient to demonstrate the vendor's proper use of and reliance on the GIS database data to determine the tax rate and local taxing jurisdiction to which tax was owed. A vendor that queries the GIS database using an incomplete or erroneous address shall not be held harmless. Please see Part 8 and Part 9 of the Colorado Sales Tax Guide for additional information regarding using the GIS database.
Local Jurisdictions Participating in the Hold Harmless Provision
The hold harmless provision applies to sales taxes for all SUTS participating jurisdictions, including all state-collected cities, counties, and special districts and all home rule self-collecting jurisdictions that have agreed to participate in the SUTS System.