By enacting House Bill 19-1420 in 2019, the state codified the
department of revenue's destination sourcing rule for state sales and use tax collection for sales and use taxes imposed by any statutory incorporated town, city, or county and for special districts. That bill allowed small retailers to source their sales to the business' location regardless of where the purchaser receives the tangible personal property
or service until 90 days after a geographic information system provided by the state is online and available for the retailer to determine the taxing jurisdiction in which an address resides. On April 1, 2021, the department of revenue issued a notice that the geographic information system is online and meets the requirements. Therefore, under current law, the small retailer exception to the sales tax destination sourcing rules will repeal on June 30, 2021.
This bill allows small retailers to source their sales to the business'
location regardless of where the purchaser receives the tangible personal property or service until February 1, 2022.
