Notice to Retailers: Geographic Information System is Online and Available

Colorado retailers are advised pursuant to sections 39-26-104(3)(c)(III)(B) and 39-26-105.2(2), C.R.S., that the Geographic Information System (GIS) described in those sections is now online and available for retailers to use in determining the jurisdictions to which tax is owed and to calculate appropriate sales and use tax rates for individual addresses. The GIS is part of the new Sales and Use Tax System (SUTS). Retailers must take the following actions by July 1, 2021:

• Retailers that were sourcing all sales to their business location pursuant to section 39-26-104(3)(c), C.R.S., must begin applying the “destination sourcing” rules set forth in section 39-26-104(3)(a) and (b), C.R.S.
• Retailers that were utilizing address databases certified by the Department of Revenue pursuant to section 39-26-105.3, C.R.S., must ensure that the database provider is using the most recent information provided by SUTS in order to be held harmless under the terms of section 39-26-105.2(3), C.R.S.

Retailers currently using origin sourcing will find resources for transitioning to destination sourcing on our website, including:

• GIS Help Page
• Transition to Destination Sourcing Information
• SUTS Information Page
• SUTS Help Page
• SUTS Frequently Asked Questions
• SUTS Participating Home Rule & State-Administered Jurisdictions

Beginning July 1, 2021, all retailers will be required to apply the destination sourcing rules. The Department does not have the authority to grant exceptions to these rules. All retailers are encouraged to file sales tax returns for the state, state-administered local jurisdictions, and participating home-rule cities using SUTS. SUTS is a one-stop portal that will allow taxpayers to do all manner of tasks related to collecting and remitting sales and use tax in an easy, automated, and seamless fashion. The system has the following capabilities:

• Accurate address location capability
• A uniform remittance form
• A single point of remittance
• A taxability and exemption matrix
• The ability to calculate tax rates on items with differing tax rates in the same jurisdiction
• A record of the history of any changes

To access SUTS, or learn more about its capabilities, visit our website.