It’s bad enough if your business mistakenly pays sales or use taxes to the wrong local government. Worse still, though, is when your business is forced to remit the same amount to the correct local government — without having been reimbursed for its innocent mistake in paying the wrong one.

That actually has happened, as noted by legislative researchers who did the footwork on legislation intended to avert the problem in the future. The upshot of the effort, Senate Bill 112, was signed into law last week by Gov. John Hickenlooper.

While Colorado law already allowed the collection of the taxes paid in error to the wrong government entity so the revenue could be repaid to the right one, the state had been applying a statute of limitations that prevented a business from getting reimbursed after three years even if it hadn’t detected the error earlier than that. The bottom line is the business in question would wind up having to pay both entities.

The bipartisan SB 112, introduced in the Senate by Sen. Tim Neville, R-Littleton, and in the House by Rep. Dan Pabon, D-Denver, suspends the statute of limitations in all such cases.

Meaning, no more statute of limitation on double-taxation.