Workgroup Meetings – SB22-032 Streamlined Sales Tax Licensing for Local Taxing Jurisdictions

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The Colorado Department of Revenue, Division of Taxation, is convening two workgroup meetings to discuss streamlining the application process for retail business licenses pursuant to Senate Bill 22-032. The workgroup meetings will be conducted entirely by telephone and video conference, and will be recorded. Additional information on how to participate in the workgroup is discussed below. The Department has created a Virtual Workgroup Guide that provides additional guidance for participants. 

The two workgroup meetings will be held:

  • October 12, 2022 at 10:00 AM to discuss retailers’ considerations. The Department seeks feedback from retailers regarding this new process and the contemplated additions to the retail business license application and renewal. Suggestions for improving the current process for registering with the Department, and obtaining or renewing sales tax licenses, will also be welcome.
  • October 19, 2022 at 10:00 AM to discuss local taxing jurisdictions’ considerations. The Department seeks feedback from local taxing jurisdictions regarding what information is critical to obtain, what information would be beneficial to have, and are there important data points not currently collected on the CR 0100.

The Department will distribute an agenda for the workgroups no later than one week before the workgroup meetings. If you have topics you would like to include in the agenda, please send them by email to dor_taxrules@state.co.us

Background

Pursuant to Senate Bill 22-032, the Department must consult with retailers and local taxing jurisdictions on streamlining the application process for retail business licenses. Currently, a retailer doing business in Colorado must obtain a retail business license from the Department in order to legally make retail sales in Colorado, and, if required pursuant to local ordinances, must also obtain a general business license from a local taxing jurisdiction in order to legally make retail sales in the local taxing jurisdiction. Beginning on July 1, 2022, Senate Bill 22-032 prohibits local taxing jurisdictions from charging a fee for a general business license for retailers that either do not have a physical presence in a local taxing jurisdiction or have only incidental physical presence within a local taxing jurisdiction. 

Additionally, Senate Bill 22-032 requires the Department to streamline the application process for retail business licenses by requiring sufficient information from retailers on the retail business license application and renewal to provide the necessary information on the application to local taxing jurisdictions so that retailers no longer need to apply for general business licenses with local taxing jurisdictions. In order to accomplish this, Senate Bill 22-032 requires the Department to consult with retailers and local tax jurisdictions. 

What is a workgroup?

A workgroup is a forum for the Department to gather information from the public. The workgroup consists of individuals who have knowledge of the issues being discussed. The workgroup will be asked to provide their input and insight, along with constructive feedback and suggestions, in an open discussion format. 

How to participate?

  1. Attend the workgroup meetings scheduled for October 12 and 19, 2022 at 10:00 AM.  No registration is required. People willing to share their knowledge on the workgroup topic are encouraged to attend and participate. 

Workgroups are currently being conducted virtually using the Zoom platform.  Video conferencing equipment and an adequate Internet connection are recommended but not required (participation by video is optional). Connecting through the Zoom website or desktop client offers additional features even if participants choose to leave their cameras off.

Workgroup meetings are recorded, and may be reviewed afterward by those who are unavailable at the scheduled meeting time. Email dor_taxrules@state.co.us to request video conference information or to obtain access to the recording. 

People wishing to attend or participate by teleconference should connect as follows:

Retailers

Phone Number: 1 (669) 900-6833

Meeting ID: 890 6942 7700

Local Taxing Jurisdictions

Phone Number: 1 (669) 900-6833

Meeting ID: 834 3867 5067

  1. Submit comments on the application or renewal process by 5:00 P.M. on October 19, 2022. Prior to commenting, review any existing rules, the related statutes or legislation, and the tax topic being discussed.  Then provide feedback or input on necessary changes or additions to the application or renewal process or any guidance that will aid in the application or renewal process. 

Suggested reading includes:

All feedback is welcome, but the most useful feedback includes specific information to be added to, removed from, or changed.  Comments should be submitted by email to dor_taxrules@state.co.us. Written comments are encouraged even if you are able to attend the workgroup meeting.