Streamline Filing Sales & Use Tax Returns

Sales and Use Tax Simplification Task Force. Under current law, the executive director of the department of revenue (executive director) is authorized to permit taxpayers whose monthly tax collected is less than $300 to make returns and pay taxes at quarterly intervals. The bill increases that threshold to $600 for returns that must be filed on and or after January 1, 2025, and allows the executive director by rule to increase the threshold amount for returns that must be filed on or after January 1, 2026.

The bill also imposes thresholds that prohibits home rule cities, towns, and city and counties that collect their own sales and use taxes and do not use the electronic sales and use tax simplification system administered by the department of revenue (SUTS) must adhere to in allowing taxpayers to make returns and pay sales and use taxes. On and after January 1, 2025, a taxpayer must be permitted to make returns and pay sales and use taxes as follows:

• Once a year if the taxpayer annually collects less than $2,000;
• Quarterly if the taxpayer annually collects between $2,000 and $25,000; and
• Monthly if the taxpayer annually collects more than $25,000.

Additionally, the bill requires all local taxing jurisdictions to begin using SUTS by July 1, 2025. Local taxing jurisdictions that do not begin using SUTS by July 1, 2025, will be precluded from participating in the streamlined process for collecting sales and use tax from retailers that have a state standard retail license and either do not have a physical presence within the local taxing jurisdiction or have only incidental presence. from collecting sales and use tax from a retailer that does not have physical presence in the state unless the retailer elects to collect and remit sales and use tax or enters into a voluntary collection agreement with a home rule city, town, or city and county. $17,200 is appropriated to the department of revenue for the implementation of the bill.

(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)

(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)