As anticipated the Colorado House of Representatives agreed to the amendments added by the Senate and voted to repass HB1193 with a vote of 34-31. This bill will now go to the Governor who is expected to approve. Colorado Internet sales tax takes effect on March 1, 2010.
Merchants will need to retain counsel to determine the impact on their business. This counsel needs to be an accountant or a sales and use tax attorney. No one else is qualified to determine the exact meaning of the law.
This bill is unlike other states and merchants should not assume that any one other than a sales and use tax attorney or a qualified accountant really understands the impact.
The confusion in Colorado as merchants and residents struggle to determine the impact of the new Colorado Internet sales tax, is likely to increase.
We will continue to monitor the situation. As always we are available to help just as we have done in every other state since New York.
To find the latest version of HB1193 visit the Colorado Legislature and select the bill number. (As of this evening they had not updated the summary paragraph but the latest bill version does contain accurate bill text(except for the summary).)
