One-Month Extension for Filing/Remitting State and State-Administered Local Sales Tax
Colorado retailers that are required to file a sales tax return and remit sales tax on April 20, 2020 may extend their filing and remittance deadline to May 20, 2020. This is a one-time extension of the April 20, 2020 filing and remittance deadline for state and state-administered sales taxes. The extension does not apply to self-collecting home-rule taxing jurisdictions.
The Department will waive penalties and interest that may accrue retailers that file their return and remit the full amount of state and state-administered sales tax due April 20, 2020 on or before May 20, 2020. Retailers do not need to do anything to apply for this automatic extension.
However, a retailer that does not file the return and remit full payment on or before April 20, 2020 will not be able to retain their vendor/service fee. The vendor fee is a percentage of the sales tax collected that a retailer is allowed to retain in order to cover the expenses incurred by collecting and remitting state sales tax. The vendor fee is currently 4% of the sales tax remitted and is capped at $1,000 per filing period.
For more information, visit the Sales Tax Extension FAQ web page and review Executive Order # D 2020-023 on the Governor's Executive Orders web page. See also §29-2-106, C.R.S.; § 39-26-105,C.R.S.; §39-26-109, C.R.S.; §39-26-105(1)(c) and (d), C.R.S.; and §39-26-118(2)(a), C.R.S.
The Department is continually monitoring the evolving COVID-19 situation, and responding in real-time to address the questions and concerns of Coloradans. To help keep the public informed, CDOR has set up a COVID-19 page where we will post all updates and changes related to taxes, deadline extensions, services and penalties. Please visit the COVID-19 Updates web page for more information.