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.
If a retailer properly uses the GIS database—or a third-party database that is verified to use the most recent information provided by the GIS database—to determine the local jurisdictions to which tax is owed for a given sale, the retailer will not be held liable for any state-administered local sales tax the retailer failed to properly collect solely as a result of an error or omission in the database. In order to be relieved of liability with respect to any particular sale, a retailer must collect, retain, and produce, upon request, documentation sufficient to demonstrate proper use of and reliance on a certified database at the time of the sale. 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 following local jurisdictions, which administer their own sales taxes, have also adopted similar provisions regarding relief from liability for sales taxes not properly collected solely as a result of an error or omission in the database: