Department of Finance
Reference: Business License Fee Update
To: Mayor Gregory Mills and Members of City Council
Through: Michael Martinez, City Manager
Prepared By: Catrina Asher, Finance Director
Ana LeScoezec, Revenue Manager
Date Prepared: May 10, 2022
PURPOSE
To provide City Council with recommended updates to the business and sales tax license fees in order to comply with Senate Bill 22-032
STRATEGIC FOCUS AREAS
- Strong Regional Relationships and Partnerships
- Financially Responsible
BACKGROUND
After the South Dakota v. Wayfair Supreme Court case decision in June 2018, taxing jurisdictions across the United States have enacted legislation to clarify when marketplace facilitators and remote sellers without a physical presence in the taxing jurisdiction must collect and remit that jurisdiction's sales tax.
Colorado has approximately 70 self-collecting home rule municipalities that are responsible for the adoption and administration of their sales and use tax codes in addition to enforcement and conducting audits. The City of Brighton, along with several other home rule municipalities, has adopted an ordinance clarifying when marketplace facilitators and remote sellers need to collect and remit City of Brighton Sales Tax. This ordinance became effective in January 2021.
The City of Brighton also participates in the Colorado Sales and Use Tax System (SUTS), which was developed and launched in June 2020 in order to simplify sales tax filing and remittance. This system allows businesses to file and pay sales and use tax for all participating jurisdictions all in one platform.
While the SUTS system has allowed businesses to file in one place for participating jurisdictions, many find themselves having to obtain licenses with multiple jurisdictions. These licenses vary in cost and in some cases, the license fee itself may be more than what is owed in sales tax to a jurisdiction.
SENATE BILL 22-032
This senate bill is meant to further streamli...
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