Dispute resolution

29-2-208. Dispute resolution. (1) Except as otherwise provided in this part 2, disputes regarding sales or use tax collected by the department under this part 2 are resolved in the same manner as the collection, administration, and enforcement of state sales tax under article 26 of title 39, including any relevant sections of part 1 of article 21 of title 39. (2) (a) If, in the course of a case or claim arising under this part 2, or under article 21 of title 39, a taxpayer or the executive director asserts that all or part of a sales or use tax assessment or refund claim has been erroneously paid to the state or to another statutory local government, special district, or home rule jurisdiction, then, subject to the requirements set forth in subsection (2)(b) of this section: (I) Neither the taxpayer nor the executive director needs to file a claim for refund with the jurisdiction that erroneously received the sales or use tax; (II) The executive director may order payment from the jurisdiction that erroneously received the sales or use tax in the amount erroneously paid, with interest, if applicable, pursuant to section 39-21-110, to the correct jurisdiction, or to the taxpayer, as the case may be; (III) Notwithstanding section 29-2-209, the periods open or closed to assessment or refund under the ordinance or resolution of any statutory local government, special district, or home rule jurisdiction; under sections 39-21-107 (1), 39-26-125, 39-26-210, and 39-26-703; or under an intergovernmental transfer agreement may not bar any of the remedies set forth in this subsection (2)(a); (IV) The taxpayer shall receive a credit against any assessed sales or use tax due up to the amount ordered to be paid by the jurisdiction that erroneously received the sales or use tax; and (V) The executive director may waive, for good cause shown, any penalties assessed thereon, or any interest assessed in excess of the amount paid, if any, by the jurisdiction that erroneously received the sales or use tax pursuant to subsection (2)(a)(II) of this section. (b) If the executive director determines under this subsection (2) that the disputed tax was paid to a home rule jurisdiction that is not a requesting home rule jurisdiction, then the executive director shall hold a hearing as described in part 3 of this article 2 and the home rule jurisdiction that is not a requesting home rule jurisdiction shall be joined as a party to the hearing as described in section 29-2-302 (5). (3) If a taxpayer claims or the executive director finds that all or part of a sales or use tax due to a home rule jurisdiction that is not a requesting home rule jurisdiction has been paid to the state or to a statutory local government, a requesting home rule jurisdiction, or a special district, and the executive director makes a determination to this effect, then the department shall forward those funds directly to the home rule jurisdiction within thirty days of the executive director's determination with interest, as provided in section 39-21-110. Source: L. 2024: Entire part added with relocations, (SB 24-025), ch. 144, p. 541, � 1, effective July 1, 2025.