Good news for people who love to do their taxes: beginning next year you’ll get a chance to fill out one more form: DR 0252. Not only will tax geeks get to fill this out, but so will pretty much anyone who buys anything online. DR 0252, also known as the Consumer Use Tax Return will have to be filled out by anyone who pays sales tax online.
Colorado Governor Ritter signed into law the Internet Sales Act on February 23, 2010. While Coloradoans were already obligated to pay taxes on Internet sales, apparently no one (insert feigned look of shock here) was doing so. The Internet Sales Act was put in place to change that. How will the Centennial State know if you’ve paid sales tax? Retailers with more than $100,000 in sales are required to notify the state of the amount each Colorado customer spent in a given year.
Unsurprisingly, this law is not without its flaws. Consumers turn to the Internet to save money, especially on sales tax. Once that incentive is gone, Internet sales may dry up. How will Internet retailers respond? Well, one can only imagine that they won’t report sales to Colorado. Colorado still faces an uphill battle with enforcement on this issue. Time will tell if they are willing to spend the money and resources to capture this source of revenue.
7 News has more.
Tue, Mar 2, 2010
Consumer Law, Legal News