Online retailers wouldn’t have to report purchases
DENVER – Privacy concerns have led to some changes to Colorado’s bid to collect sales tax on online purchases.
The measure would require out-of-state, online retailers to either collect sales tax or send customers an annual notice of how much tax they owe the state. Retailers would also have to report that to the state.
Under a change made in the Senate this week, retailers would only have to report the amount owed, not a list of purchases. But if the state presses someone to pay and they challenge it, the state would then likely have to review exactly what was purchased to determine what’s taxable.
Sen. Mike Johnston said such a review would only happen if the customer consents.
However, anyone who didn’t agree would have to give up their challenge and pay the tax.
The proposal is House Bill 1193.
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