Businesses reporting sales and use tax in Colorado face one of the most complex sales and use tax systems in the country. There are more than 700 individual taxing districts, many with their own sales and use tax rates and added to that, local governments apply sales tax to goods and services (“taxability rules”) differently from the state.
Read More: Zyter Releases CMS Interoperability Solution for Health Insurance Payers
This morass of sales tax rules can result in businesses located right next to one another in the same zip code having to apply different tax rates and rules. The Colorado’s Sales and Use Tax Software (SUTS) task force set out to find a software system that would cut through this minefield of complex rules and make it easy to get accurate information on tax rates and taxability rules for over 300 goods and services.
After exploring many options, the task force chose to engage The Tax Research Company (TTR) to build this system. The system also needed to be accessible by state and local governments to facilitate updates in real time. From a tax data perspective, as sales taxes change due to the passage of new laws, each jurisdiction is responsible for updating their local tax information. A detailed user agreement has been put in place for self-collecting jurisdictions, and users will be held harmless for incorrect data, as DOR has certified TTR as an official ‘source-of-truth’ database of sales and use tax information.
1 comment
Comments are closed.