C.R.S. § 39-26-204 — Periodic return - collection

(1) (a) Every person subject to the provisions of this part 2 who uses, stores, or consumes tangible personal property in the conduct of a business in this state, which property is purchased either inside or outside this state, and who has not paid the sales or use tax imposed by this article to a retailer shall make a return and remit the tax imposed by this part 2 to the executive director of the department of revenue for the preceding period covered by the remittance on forms prescribed by him, showing in detail the tangible personal property stored, used, or consumed by said person in the conduct of his business within the state in the preceding period covered by the remittance and on which property the said sales or use tax has not been paid. Every person subject to the provisions of this part 2 shall maintain monthly records of the amount of tax due. At such time as the cumulative tax due at the end of any month is in excess of three hundred dollars, such person shall make a return and remit the tax due before the twentieth day of the following month. If the total tax due in a calendar year is less than three hundred dollars, such person shall make a single return and remittance for such calendar year before January 20 of the following calendar year. (b) Every person who is subject to the provisions of this part 2 who uses, stores, or consumes tangible personal property not in the conduct of a business, which is purchased either inside or outside this state, who has not paid the sales or use tax imposed by this article to a retailer, shall make a return and remit the tax annually, at the time the Colorado income tax of such person is due and payable as provided in article 22 of this title, on forms prescribed by the executive director, showing in detail the tangible personal property stored, used, or consumed by said persons within this state for the preceding taxable year. (c) All such returns shall be subscribed by the taxpayer or his agent and shall contain a written declaration that it is made under the penalties of perjury in the second degree. (2) (a) Every retailer, except those retailers described in subsection (2)(b) of this section, doing business in this state and making sales of tangible personal property for storage, use, or consumption in the state, and not exempted as provided in part 7 of this article 26, at the time of making such sales or taking the orders therefor, or, if the storage, use, or consumption of such tangible personal property is not then taxable under this part 2, then at the time such storage, use, or consumption becomes taxable under this part 2, and sourced as provided in section 39-26-104 (3), shall collect the tax imposed by section 39-26-202, from the purchaser and give to the purchaser a receipt therefor, which receipt shall identify the property, the date sold or the date ordered, and the tax collected and paid. The tax required to be collected by such retailer from such purchaser shall be displayed separately from the advertised price listed on the forms or advertising matter on all sales checks, orders, sales slips, or other proof of sales. (b) Repealed. (3) It is unlawful for such retailer or agent to advertise or hold out or state to the public or to any customer, directly or indirectly, that the tax or any part thereof will be assumed or absorbed by such retailer or agent, or that it will not be added to the selling price of the property sold, or, if added, that it or any part thereof will be refunded. The tax required to be collected by such retailer or agent shall be remitted to the state in like manner as otherwise provided in this article for the remittance of sales taxes collected by retailers, and all such retailers or agents collecting the tax imposed by section 39-26-202 shall make returns on forms provided by the executive director at such times and in such manner as is provided for the making of returns in the payment of the sales taxes. The procedure for assessing and collecting said taxes from such retailers or agents, or from the user when not paid to a retailer or agent, shall be the same as provided in this article and article 21 of this title for the collection of sales taxes, including collection by distraint warrant, and said taxes due and owing from any retailer or agent for the storage, use, or consumption of tangible personal property shall bear interest and be subject to the same penalties as is provided in this article and article 21 of this title for nonpayment or delinquencies of sales taxes. (4) All sums of money paid by the purchaser to the retailer as taxes imposed by this article shall be and remain public money, the property of the state in the hands of such retailer, and he shall hold the same in trust for the sole use and benefit of the state until paid to the executive director of the department of revenue. For failure to so pay to the executive director, such retailer shall be punished as provided by law. (5) (a) (I) If a person neglects or refuses to make a timely return in payment of the tax or to pay or correctly account for any tax as required by this article 26, the executive director of the department of revenue shall make an estimate, based upon the information that may be available, of the amount of taxes due or not accounted for or incorrectly accounted for on a return for the period for which the taxpayer is delinquent. The executive director shall add to the estimated amount of taxes due or not accounted for interest if applicable under section 39-21-110.5, and a penalty equal to the greater of: (A) The sum of fifteen dollars; or (B) Ten percent of such unpaid, unaccounted, or incorrectly accounted amount, plus one-half percent per month from the date when due, not exceeding eighteen percent in the aggregate. (II) The executive director shall provide the delinquent taxpayer written notice of the estimated taxes, penalty, and interest by first-class mail as set forth in section 39-21-105.5. (b) Such estimate shall thereupon become a notice of deficiency as provided in section 39-21-103. At the delinquent taxpayer's request, a hearing shall be held and the executive director shall make a final determination pursuant to said section. The taxpayer may appeal said final determination in the manner provided in section 39-21-105. Source: L. 37: p. 1100, § 1. CSA: C. 144, § 36. L. 39: p. 507, § 4. CRS 53: § 138-6-35. C.R.S. 1963: § 138-5-35. L. 67: pp. 333, 523, §§ 2, 2. L. 72: p. 573, § 64. L. 84: (1)(a) amended, p. 1022, § 1, effective January 1, 1985. L. 85: (4) and (5) added, p. 1258, § 14, effective January 1, 1986. L. 96: (5)(a) amended, p. 167, § 10, effective July 1. L. 2004: (2) amended, p. 1045, § 17, effective July 1. L. 2019: (2) amended, (HB 19-1240), ch. 264, p. 2501, § 7, effective June 1. L. 2020: (5)(a) amended, (HB 20-1174), ch. 104, p. 400, § 2, effective September 14. L. 2021: (2)(b)(II) repealed and (2)(b)(III) added, (SB 21-282), ch. 394, p. 2620, § 2, effective June 30. L. 2022: (2)(b)(III) amended, (HB 22-1027), ch. 1, p. 1, § 2, effective January 31. Editor's note: Subsection (2)(b)(III) provided for the repeal of subsection (2)(b), effective October 1, 2022. (See L. 2021, p. 2620.)