The first bill to be acted on in the 2022 General Assembly won a unanimous vote Thursday from the House Business Affairs & Labor Committee and is on the fast-track to the governor’s desk.

House Bill 1027, which came out of the interim Sales and Use Tax Simplification Task Force, deals with destination sourcing.

That’s a requirement that retailers collect sales tax based on where the service or product will be delivered, instead of being based on the retailer’s location. 

The bill is a follow-up to House Bill 19-1240, which created the destination sourcing tax law. The law doesn’t apply to small businesses, defined as those with retail sales under $100,000. Under that exception, small business sales would be taxed at the business location. 

That exception is due to expire on Feb. 1, 2022, based on a 2021 bill that extended it to that date. HB 1027 would extend the expiration date to October 1, 2022.

The bill now goes on to the full House, which is expected to debate it on Friday. 

Sponsors of HB 1027 are Reps. Cathy Kipp, D-Fort Collins and Kevin Van Winkle, R-Highlands Ranch.