On April 4, 2022, the Colorado House of Representatives unanimously approved S.B. 32, a measure simplifying local sales and use tax reporting by prohibiting Colorado’s approximately 70 home-rule cities from requiring remote sellers to obtain local business licenses as long as the retailer has a state standard retail license. Beginning on July 1, 2022, local taxing jurisdictions may no longer charge remote retailers or retailers with only incidental physical presence in the local taxing jurisdiction for a general business license. Starting in July 2023, local taxing jurisdictions may not require such remote sellers to separately apply for a retail license, and if a local license is required, the local jurisdiction shall automatically issue it. The bill also requires the Colorado Department of Revenue to provide information about remote sellers to local taxing jurisdictions. The measure now heads to the Governor for his signature.
