Colorado Tax Legislation Update
Colorado Tax Legislation Update
As the Chair of the Government Relations Committee for the Colorado Society of Enrolled Agents outreach to legislators was provided on bills moving through the process this session as they pertained to matters of taxation.
With special thanks to Heidi Morgan of Wagner Morgan Strategies a link to the bill tracker is below and provides an overview of all legislation being tracked and considered at this time.
CoSEA Bill Tracker:
In summary:
SB22-006, Sales Tax Assistance for Small Business, which CoSEA is supported, permits a retailer with total taxable sales in the amount of $100,000 or less to retain 5.3% of the sales tax reported as compensation for the retailer’s expenses incurred in collecting and remitting the tax (vendor fee) for sales made in 2023, rather than retaining a 4% vendor fee, which is what current law allows. SB22-006 passed both the House and Senate and received the Governor’s signature.
SB22-233, TABOR Refund Mechanism For FY 2021-22 Only, which CoSEA is amended, changes the refund TABOR refund date for fiscal year 2021-2022 by allowing taxpayers who have filed by May 31, 2022 to receive $400 TABOR refund per taxpayer by August 2022. SB22-233 passed Senate Finance and Senate Appropriations Committee by party-line votes. CoSEA has obtained favorable amendments to the bill and continues to work with the sponsors and administration for a fix to allow extension filers to also receive their TABOR refunds. SB22-233 passed both the House and Senate and received the Governor’s signature.
HB22-1118, Sales and Tax Use Refunds, which CoSEA amended, made a number of changes to processes around sales and use tax refunds. CoSEA successfully worked on amendments with the bill sponsor and the Department of Revenue that were accepted into the bill. HB22-1118 has passed out of the House and the Senate, and now received Governor’s signature.
SB22-124, SALT Parity Act, which CoSEA amended and then supported, allows pass-through entities to elect to pay state income tax at the entity level, which allows the entity to claim an unlimited deduction at the federal level for state and local taxes paid. This election reduces federal taxable income for the pass-through entity, but does not reduce or increase Colorado taxable income under current law, making it revenue neutral to the state. SB22-124 passed both the House and Senate and received the Governor’s signature.
For more on Colorado tax legislation contact me today.
