Gov. Jared Polis recently issued an executive order extending the deadline for businesses to remit sales tax by 30 days.
Colorado businesses were originally required to remit their sales tax by April 20. However, because of coronavirus, the due date has been pushed back to May 20. The extension applies to all state-administered local sales taxes, but does not apply to self-collecting home-rule cities.
Retailers that take advantage of the extension will not face any penalties or interest, but they will forfeit their ability to retain their vendor fee.
Vendor fees are a percentage of the collected sales tax that a retailer is allowed to keep in order to cover expenses incurred by collecting and remitting state sales tax.
Colorado’s vendor fee is 4 percent of the sales tax remitted and is capped at $1,000 per filing period. Local fees may vary.
The executive order said that this is a “one-time extension.”
For more information visit Colorado.gov/Tax/COVID-19-Updates.
From our sister paper The Mountain Mail at www.themountainmail.com