Hold Harmless Provision for Users of Colorado's Geographic Information System Database

Mar 18th, 2020

Colorado created a "hold harmless" provision for vendors who use the state's geographic information system (GIS) database to get local tax rates. The GIS database is a geographic information system database that the Department of Revenue (DOR) owns and maintains, and is provided to vendors to determine the jurisdictions to which tax is owed and to calculate sales and use tax rates for individual addresses. The provision applies to vendors who use the GIS to (1) determine the correct taxing jurisdiction and (2) get the correct tax rates. The provision means that if a vendor uses the GIS to do these things and there is an error in the GIS, the vendor will not have to pay any tax, charge, or fee liability to any taxing jurisdiction because of that error. The DOR must ensure that the GIS Database is at least 95% accurate.