Colorado is one of many states working to improve the experience of accessing digital services, which is also a key focus in the governor’s new strategic plan. Tax services are part of that process; for example, the state recently started offering mobile access to tax services through its TAX2GO program. Where that program aims to serve individual taxpayers, SUTS is focused on serving businesses in the state.
The initial system was released in November 2020, but the updates announced last week were legislatively required by the Electronic Sales And Use Tax Simplification System Act of 2023.
DOR will be hosting an informational webinar Thursday on SUTS; it’s free to attend for those who register.
“It’s just one of our educational tools that we’re using to help businesses navigate the new system and become comfortable with it,” said Eric Myers, taxpayer service director within the DOR Division of Taxation.
The legislation calling for this overhaul outlined specific required activities and predesignated timelines for completion, including enabling direct data entry. Myers said the legislative requirements guided the creation of the department’s project plan and management.
The system updates are live now, following a soft launch in early January and the formal launch announcement Jan. 23. More than 1,500 users have already used this interface to file their taxes. Myers said early metrics demonstrate that users are able to complete their transaction processes about 5 percent faster using the new system. These numbers have also shown a decrease in users’ abandonment rate.
“Any time saved for business, I think, is a win for everyone, so that’s what we’re focused on,” he said.
In addition to an interface refresh, one update allows users to enter their data directly into the screen, whereas previously, users only had the option of a spreadsheet upload. That latter option is still available. According to Myers, early data shows that most users are still utilizing the spreadsheet upload method, but 47 percent are using the direct data entry method.
“But it’s really just giving businesses the opportunity to use the method that they’re most comfortable with,” Myers said.
The legislative body that promoted this change, the Sales and Use Tax Simplification Task Force, still meets. According to Myers, his team will gather with the task force after the May legislative session ends to share metrics-based information illustrating the impact of improvements. Some features, he acknowledged, may need to be further corrected or optimized, which data will help inform.
“So, in other words, it’s a living product,” Myers said. “We will continue to measure impact [and] user feedback and try to make improvements where we can.”
Another piece of this process is the addition of a geographic information system component; this feature went live about a year ago. It allows businesses to bulk upload addresses and return tax information, which he said has already received positive feedback.
This SUTS overhaul process has been underway for about 18 months, to ensure the system is as beneficial for users as possible. Initially slated for a fall 2024 launch, the January launch date resulted in a better experience for users. And according to Myers, the DOR staff that worked on this project “advocated at every turn for businesses.”
“Without their attention to detail and their advocacy, the system wouldn’t be where it is,” he said.
