Presentation to the

Sales and Use Tax Simplification Task Force

2015 State Audit Update & GIS Databases

August 15, 2017

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The Colorado Department of Revenue (CDOR) doesnot own a GIS database: CDOR certifies databaseproviders if they attain a 95 percent accuracy rate.

There are currently four certified providers, ofwhich three have a free lookup tool.

CDOR is currently working on certifying two moredatabase providers.

A list of certified database providers can be foundon the CDOR website:https://www.colorado.gov/pacific/tax/local-sales-use-tax-by-address

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One address in two different counties.

One address in more than one tax district.

Multiple cities in the same zip code andmailing address vs. actual address.

Keeping up with changing/complexboundaries and new taxing districts.

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A GIS mapping application does not simplifyColorado’s sales tax structure.

However, the General Assembly can takemeasures to simplify some aspects ofColorado’s sales tax structure in some, but notall, jurisdictions.

Jurisdiction Action by General Assembly

State YES

County YES

Statutory City YES

Special District YES

Home Rule City NO

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A retailer that collects sales tax is allowed toretain a percentage of the tax reported to coverthe expense of collecting and remitting the tax.This amount is know as the “vendor fee”.

Jurisdiction Vendor Fee Rates Notes

State 3.33%

Special Districts Between 0% and 3.33%

Counties Between 0% and 3.33% Capped at $200 per month

Cities Between 0% and 3.33% Capped at $1,250 permonth

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1. Creating consistent vendor fees.

2. Changing boundaries of special districts to becongruent with existing jurisdictions.

3. Create the same exemptions among all state-collected jurisdictions.

Adopting all these measures may allow mostbusinesses to file returns for state-administeredjurisdictions in one column as opposed to up tofive columns now.

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