Colorado ‘Tattletale’ Tax Law Takes Effect July 1st; Here’s What to Tell Your Customers

The ACMA and its True Simplification of Taxation coalition urge members to post the following on your websites and catalogs (if you deem the latter suitable) in regard to the new Colorado regulation requiring the reporting of Colorado-based consumers’ purchasing activity:

CUSTOMER ALERT: Colorado law requires us to send you a year-end summary of all your purchases from our company. Moreover, the law also requires us to report your name, billing and shipping addresses, and total amount of your purchases to the Colorado Department of Revenue.

We are not required to, and do not, collect Colorado sales tax on your purchases. However, according to the Colorado Department of Revenue, you are required to file an annual sales or use tax return with the state at the end of the year reporting all taxable purchases that were not taxed, and pay any taxes due. A purchase is not exempt from sales or use tax merely because it is made over the Internet or by other remote means.

If you have privacy concerns or questions about Colorado’s purchase reporting law, please contact your state representatives. See http://leg.colorado.gov/find-my-legislator