Colorado ~ Multiple Taxes: Legislature Approves Tax Amnesty Program

The Colorado Legislature has approved a tax amnesty program that would apply to the following:

— corporate and personal income taxes;

— sales and use taxes and county or municipal sales taxes collected by the Department of Revenue;

— gasoline and special fuel taxes;

— cigarette and tobacco products taxes;

— severance taxes;

— certain local improvement district sales taxes;

— sales and use taxes imposed by the Regional Transportation District, the Denver Metropolitan Scientific and Cultural Facilities District, Metropolitan Football Stadium, and regional transportation authorities; and

— local marketing and promotion taxes and county lodging and rental taxes collected by the Department of Revenue.

If signed by Gov. John Hickenlooper, the tax amnesty program would run from October 1 through November 15, 2011. Certain taxpayers would be allowed to pay certain overdue taxes, including one-half of any interest due, without being subject to any fine or civil or criminal penalty otherwise provided for by law. In order to qualify, the taxpayer cannot have been billed for the overdue taxes before October 1, 2011, and the tax must have been due for returns or reports that were required to have been filed before December 31, 2010, including returns for which the department has granted an extension beyond that date.

The taxpayer would be subject to appropriate civil or criminal penalties if the taxpayer fails to pay the full amount of taxes due during either the amnesty period or an agreed-upon payment schedule or commits willful fraud in filing under the terms of the program.

The governor is expected to sign the measure.

S.B. 184, as approved by the Colorado Legislature on May 11, 2011;

Colorado Legislative Council Staff Fiscal Note, May 10, 2011; Email from Colorado Sen. Pat Steadman, May 19, 2011

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