Signed by Governor Bill Ritter, Jr.

Vote Smart's Synopsis:

Vote to repass a bill, after having concurred with Senate amendments thereto, that expands the sales tax to include out-of-state retailers, including online retailers, that are members of a "controlled group of corporations" (§ 1563(a), Internal Revenue Code) with a "component member" (§ 1563(b), Internal Revenue Code) that is a retailer with a physical presence in the state of Colorado, beginning March 1, 2010.

Highlights:

-Requires out-of-state retailers to notify Colorado purchasers that the sales tax is due on specific purchases, and establishes a penalty of $5 for each notification failure (Sec. 2). -Requires out-of-state retailers to notify Colorado purchases by January 31 of each year the purchases from the previous year in which the sales tax was applied, and establishes a penalty of $10 for each notification failure (Sec. 2) -Exempts out-of-state retailers from the sales tax if they prove that the component member did not engage in any solicitation in the state on behalf of the retailer that would satisfy the nexus requirement of the U.S. Constitution (Sec. 1). -Authorizes the Executive Director of the Department of Revenue to issue a subpoena to an out-of-state retailer that fails to provide specific information related to the imposition of the sales tax, and authorizes the Executive Director to apply to a district court judge for a contempt of court attachment if such retailer fails to respond to the subpoena (Sec. 2). -Prohibits the revenue derived from the sales tax from funding additional full time state employees (Sec. 4). -Appropriates $201,584 to carry out the provisions of this Act, to be allocated as follows (Sec. 5):

-$131,584 for the Department of Revenue; -$40,000 for the Department of Law; and -$30,000 for the Taxpayer Service Division of the Department of Revenue.

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that expands the sales tax to include out-of-state retailers, including online retailers, that are members of a "controlled group of corporations" (§ 1563(a), Internal Revenue Code) with a "component member" (§ 1563(b), Internal Revenue Code) that is a retailer with a physical presence in the state of Colorado, beginning March 1, 2010.

Highlights:

-Requires out-of-state retailers to notify Colorado purchasers that the sales tax is due on specific purchases, and establishes a penalty of $5 for each notification failure (Sec. 2). -Requires out-of-state retailers to notify Colorado purchases by January 31 of each year the purchases from the previous year in which the sales tax was applied, and establishes a penalty of $10 for each notification failure (Sec. 2) -Exempts out-of-state retailers from the sales tax if they prove that the component member did not engage in any solicitation in the state on behalf of the retailer that would satisfy the nexus requirement of the U.S. Constitution (Sec. 1). -Authorizes the Executive Director of the Department of Revenue to issue a subpoena to an out-of-state retailer that fails to provide specific information related to the imposition of the sales tax, and authorizes the Executive Director to apply to a district court judge for a contempt of court attachment if such retailer fails to respond to the subpoena (Sec. 2). -Prohibits the revenue derived from the sales tax from funding additional full time state employees (Sec. 4). -Appropriates $201,584 to carry out the provisions of this Act, to be allocated as follows (Sec. 5):

-$131,584 for the Department of Revenue; -$40,000 for the Department of Law; and -$30,000 for the Taxpayer Service Division of the Department of Revenue.

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that expands the sales tax to include out-of-state retailers, including online retailers, with a cumulative gross receipts of over $10,000 per year, beginning March 1, 2010.

Highlights:

-Limits the sales tax to agreements between the retailer and an affiliate that has a physical presence in the state of Colorado (Sec. 1). -Exempts out-of-state retailers from the sales tax if they prove that the affiliate did not engage in any solicitation in the state on behalf of the retailer that would satisfy the nexus requirement of the U.S. Constitution (Sec. 1). -Authorizes the Executive Director of the Department of Revenue to issue a subpoena to an out-of-state retailer that fails to provide specific information related to the imposition of the sales tax, and authorizes the Executive Director to apply to a district court judge for a contempt of court attachment if such retailer fails to respond to the subpoena (Sec. 1). -Prohibits the revenue derived from the sales tax from funding additional full time state employees (Sec. 4). -Appropriates $94,322 to carry out the provisions of this Act (Sec. 5).

Full Bill Text