Colorado News & Updates Colorado Tax Amnesty Oct. 1 - Nov. 15, 2011 The Colorado Department of Revenue will allow certain taxpayers to pay the full amount of overdue taxes, including one-half of any interest due, without being subject to any other civil or criminal penalties. The Colorado tax amnesty program will run from Oct. 1 through Nov. 15, 2011 and applies to taxes that were due on or before Dec. 31, 2010.The amnesty DOES NOT include 2010 Colorado income tax, which was due April 18, 2011. Other exclusions are: Tax delinquency. If the taxpayer receives a delinquency notice on for before Oct. 1, 2011 for a particular tax and filing period, that amount is not eligible for tax amnesty. Criminal investigation. Taxpayers facing criminal investigation are not eligible for tax amnesty. The Colorado tax amnesty program applies to the following types of taxes: Personal, corporate, partnership and fiduciary income taxes State sales and use tax and the following taxes collected by the Department of Revenue on behalf of counties and municipalities: county or city taxes; local marketing and promotion taxes; county lodging taxes; county rental taxes; local improvement district sales taxes; regional transportation authority sales and use tax; Denver metropolitan scientific and cultural facilities district sales and use taxes, metropolitan football stadium district sales and use tax, and regional transportation district sales and use tax. Gasoline and special fuel taxes Cigarette and tobacco products taxes Severance taxes NOTE: International Fuel Tax Agreement (IFTA) taxes are NOT eligible for amnesty If a taxpayer has an eligible tax return, a payment plan may be set up. However, the full amount of the tax and half of any interest due must be paid no later than Dec. 31, 2011. No supplemental application or documentation is required to be considered for amnesty. The department will consider for amnesty any eligible return filed during the amnesty period. Any AMENDED Colorado tax return will require a special application in order to be considered for amnesty. The department will provide this application once it is available. The department will set up an information Web site within the next couple of months, which will include tax forms, the amnesty application (for amended returns), interest rates and additional details about the amnesty program. Colorado Service Fee Restored The Colorado state sales tax Service Fee (also known as the Vendor’s Fee) has been restored and the rate is now 2.22%. The fee may be claimed on timely filed and paid sales tax returns submitted on or after July 1, 2011 beginning with sales tax returns for June 2011 and 2nd quarter 2011 due on July 20, 2011. Colorado Service Fee Eliminated for all State Sales Tax Filers Effective for all Colorado sales and use tax returns filed on or after July 1, 2009, the Colorado sales tax Service Fee rate (also known as the Vendor's Fee) is reduced to zero. This fee reduction applies ONLY to the state sales/use tax. This latest service fee rate change is the result of Senate Bill 09-275. Property Tax Exemption for Senior Citizens in Colorado - suspended for 2009 taxes payable in 2010. Property Tax Exemption for Senior Citizens in Colorado - 2009 Property Tax Exemption for Senior Citizens in Colorado - 2008 Business Personal Property Tax Exemption Increases Personal property shall be exempt from property tax if the actual value of such personal property is up to and including the following exemption amounts: Tax years beginning before January 1, 2009: $2,500 Tax years beginning January 1, 2009 and January 1, 2010: $4,000 Tax years beginning January 1, 2011 and January 1, 2012: $5,500 Tax years beginning January 1, 2013 and January 1, 2014: $7,000 Tax years beginning January 1, 2015 and after will be adjusted for inflation biennially. EFFECTIVE DATE: AUGUST 6, 2008 Reference: Colorado Revised Statutes 39-3-119.5   Colorado Changes to Single Sales Factor Apportionment beginning in 2009 Effective for tax years on or after January 1, 2009, multi-state businesses will be required to apportion their income for Colorado using a single sales factor. Businesses will also make an annual election regarding business/non-business income. Note also that the bill allows prior net operating losses from either of the old apportionment laws to be carried forward to years using the new single factor sales factor apportionment. EFFECTIVE DATE: JANUARY 1, 2009 Reference: Colorado House Bill 08-1380 New Hire Reporting Since 1997, Federal law requires all employers to furnish data regarding newly hired employees to their State Directory of New Hires. Please follow the below link for additional reporting information. Colorado State Directory of New Hires