On April 2, 2020, the Governor of Colorado signed an executive order (DOR E.O. 2020-022) extending the 2020 business personal property filing deadline to June 15, 2020. Also extended, to May 15, are the state-level filing deadlines for public utilities, taxable natural resource property, airline and rail transportation companies as well as taxable oil and gas property. The protest period will be adjusted based on this extension.
In Colorado, taxpayers can either pay in halves the last day of February and June 15 or in full by April 30. If a taxpayer chooses to pay in halves, the taxpayer may now make the first-half payment of the tax liability by April 20, 2020, and in turn, the interest will be waived. The second-half payment is due by June 15. If the taxpayer chooses to pay in full, those payments remain due by April 30. If the taxpayer chooses to make two payments, any payment made after April 30 will still be subject to delinquent interest. Of course, the Governor could extend the executive order, or the State Legislature could provide statutory relief for the interest due after April 30.
In addition to the extensions, the Governor directed the State Board of Equalization to promulgate and issue emergency rules to extend deadlines as may be necessary to accommodate the extension of the filing deadlines in hopes of minimizing the economic effects of COVID-19. This is positive news for taxpayers in the state, as it provides additional time to adapt to working remotely and to get data entered into a fixed asset system or directly onto the prescribed forms. The additional time to make tax payments is also helpful for those companies that didn’t make their first-half payments and helps conserve cash, which is of utmost importance in our current operating environment.
If you have any questions, please visit our COVID-19 Updates site, as our experts are in constant contact with the jurisdictions and making updates to the site as notifications become available.
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