Sales, Use and International Tax Activity Update - June 2009

Tax Amnesty Gets Local in Colorado

The use of an Amnesty program has recently reached the local level as Colorado Springs, one of the Home Rule cities in the State of Colorado announced on May 11 that they have instituted a Sales Tax Amnesty Program. One of the expected benefits to the business community is to reduce the 18 % interest rate to a 6 % fee plus any back taxes owed.

Businesses that have not previously registered have until August 14, 2009 to take advantage of the amnesty. Some business retailers may register with the State of Colorado thinking they have met the requirements for collecting sales taxes within the City of Colorado Springs. However, they fail to realize that Colorado Springs is a Home Rule city. As a Home Rule City, they have their own registration requirements which include the collection and remittance of sales tax.

With the institution of the Amnesty program, the City hopes to increase the collection of much needed funds to continue supporting government services to all of its citizens. In order to take advantage of the Amnesty provisions, business owners can contact the Revenue and Collections Division of the City. For more information about the Tax Amnesty Program, visit the City of Colorado Springs website.

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