Colo. Code Regs. 39-26-109
Current through Register Vol. 47, No. 11, June 10, 2024
Rule 39-26-109 - Sales Tax Filing SchedulesBasis and Purpose. The bases for this rule are §§ 39-21-112(1), 39-26-105 and 39-26-109, C.R.S. The purpose of this rule is to prescribe sales tax filing schedules and conditions for the modification thereof.
(1)General Rule. Retailers shall file returns and remit tax to the Department in accordance with the filing schedules and due dates prescribed by this rule.(2)Standard Filing Schedules.(a) A retailer must file returns and remit sales tax on a monthly basis unless the Department has granted the retailer approval to file returns and remit sales tax on a less frequent basis. Unless permission is denied or revoked pursuant to paragraph (3) or (4) of this rule, the Department shall permit the retailer to file returns and remit sales tax on a basis less frequent than monthly if the retailer's average monthly Colorado sales tax collection is less than three hundred dollars.(b) On the application for a sales tax license, a retailer must indicate the amount of its estimated monthly sales tax collection. The retailer's required filing frequency shall be determined initially on the basis of this estimate. (I) If the retailer's estimated monthly sales tax collection is three hundred dollars or more, the retailer shall file returns and remit tax on a monthly basis.(II) If the retailer's estimated monthly tax collection is less than three hundred dollars, the retailer shall file returns and remit tax on a quarterly basis or as provided in paragraph (3) of this rule.(3)Alternate Filing Schedules. A retailer may request a filing schedule other than monthly or quarterly as provided in this paragraph (3). The Department shall grant approval for an alternate filing schedule only if such alternate schedule will not jeopardize the collection of tax. The Department shall notify a retailer of the approval or denial of any request for an alternate filing schedule submitted pursuant to this rule. (a) If a retailer's average or estimated monthly sales tax collection is $15 or less and filing sales tax returns on a monthly or quarterly basis would impose unnecessary hardship, the retailer may request permission to file returns and remit tax on an annual basis. The retailer may make such request by checking the appropriate box of the retailer's initial sales tax application or by submitting such request to the Department in writing.(b) If a retailer is engaged in a seasonal business (a business that the retailer does not operate in Colorado during certain months of the year), the retailer may request permission to file returns and remit tax only for the months of the year that the business operates. The request shall indicate the months the retailer expects to operate the business in Colorado. The retailer may make such request by checking the appropriate boxes of the retailer's initial sales tax application or by submitting such request to the Department in writing. The retailer must immediately notify the Department if the retailer operates its business in any month for which the retailer's request indicated the retailer would not operate the business.(c) If a retailer regularly employs accounting methods involving reporting periods other than calendar months (such as thirteen four-week periods over the course of the year), the retailer may request permission to file returns and remit tax on a filing schedule consistent with such accounting methods. Any retailer requesting such permission must make such request to the Department in writing.(4)Changes to Filing Schedules.(a) For any retailer for which the Department has not approved an alternate filing schedule pursuant to paragraphs (2)(b) or (2)(c) of this rule, the Department shall, on an annual basis, calculate the retailer's average monthly sales tax collection and adjust the retailer's filing schedule to increase the frequency of filing as necessary pursuant to this paragraph (4)(a). Such adjustments shall be made effective January 1. The Department shall not make any automatic adjustment to a retailer's filing schedule to decrease the frequency of filing, but a retailer may, pursuant to paragraph (3)(b) of this rule, request a change to their filing schedule. (I) If a retailer's average monthly sales tax collection is three hundred dollars or more, the Department shall require the retailer to file returns and remit tax on a monthly basis.(II) If a retailer's average monthly sales tax collection is less than three hundred dollars, but more than fifteen dollars, the Department shall require the retailer to file returns and remit tax on a quarterly basis.(b) A retailer may submit a written request to the Department to change the retailer's filing schedule. The Department shall not approve any requested filing schedule that would jeopardize the collection of tax or any request made by a retailer that is delinquent in the filing of any required sales tax return or the remittance of any sales tax. (I) The Department shall not approve a retailer's request for a quarterly filing schedule if the retailer's average monthly sales tax collection exceeds three hundred dollars.(II) The Department shall not approve a retailer's request for an annual filing schedule if the retailer's average monthly sales tax collection exceeds fifteen dollars.(c) If a retailer becomes delinquent in the filing of any required sales tax returns or the remittance of any sales tax, the Department may revoke any prior approval of a quarterly or alternate filing schedule. Upon such revocation the retailer will be required to file returns and remit tax on a monthly basis.(d) The Department shall notify a retailer, in writing, of any change made in accordance with this paragraph (4) to the retailer's filing schedule along with the effective date of any such change.(5)Due Dates. Sales tax returns and payments of tax reported thereon are due the twentieth day following the close of the tax period. If the twentieth day following the close of the tax period falls on a Saturday, Sunday, or legal holiday, the due date shall be the next business day.(6)Wholesalers. Wholesalers that make no retail sales must file returns on an annual basis to report their gross sales and allowable subtractions therefrom. A wholesaler that makes retail sales in addition to wholesale sales is subject to the requirements of this rule and must file returns and remit tax monthly or quarterly, as applicable, unless the wholesaler has received permission to file less frequently.37 CR 18, September 25, 2014, effective 10/15/201438 CR 02, January 25, 2015, effective 2/14/201539 CR 10, May 25, 2016, effective 6/14/201640 CR 12, June 25, 2017, effective 7/15/201740 CR 23, December 10, 2017, effective 1/1/201841 CR 13, July 10, 2018, effective 7/30/201841 CR 14, July 25, 2018, effective 8/14/201842 CR 02, January 25, 2019, effective 12/18/2018, expires 4/17/2019.42 CR 02, January 25, 2019, effective 12/18/201842 CR 06, March 25, 2019, effective 4/14/201943 CR 04, February 25, 2020, effective 3/16/202043 CR 17, September 10, 2020, effective 9/30/202044 CR 01, January 10, 2021, effective 1/30/202144 CR 07, April 10, 2021, effective 4/30/202144 CR 08, April 25, 2021, effective 5/15/202145 CR 04, February 25, 2022, effective 3/17/202245 CR 23, December 10, 2022, effective 12/30/202246 CR 08, April 25, 2023, effective 5/15/2023