Colorado § 39-21-118 - Criminal penalties - repeal.

§ 39-21-118. Criminal penalties - repeal.

(1) A person who willfully attempts in any manner to evade or defeat a tax administered by the department or the payment thereof, in addition to other penalties provided by law, is guilty of a class 6 felony and, upon conviction thereof, shall be punished as provided in section 18-1.3-401 or shall be punished by a fine of not more than one hundred thousand dollars, or five hundred thousand dollars in the case of a corporation, or by both such fine and imprisonment, together with the costs of prosecution.

(2) (a) Any person required, or any person who purports to be required, under any title administered by the department to collect, account for, or pay over any tax, who willfully fails to collect or truthfully account for or pay over such tax, including, but not limited to, willfully making a materially false statement in connection with an application for a refund of any tax for the purpose of falsely obtaining a refund of such tax, in addition to other penalties provided by law, is guilty of a class 5 felony and, upon conviction thereof, shall be punished as provided in section 18-1.3-401, or shall be punished by a fine of not more than one hundred thousand dollars, or five hundred thousand dollars in the case of a corporation, or by both such fine and imprisonment, together with the costs of prosecution.

(b) (I) Subsection (2)(a) of this section does not apply to the temporary sales tax deduction and retention allowed in section 39-26-105 (1.3).

(II) This subsection (2)(b) is repealed, effective December 31, 2026.

(2.5) Any person who through gross negligence or recklessness makes a materially false statement in applying for a refund pursuant to section 39-26-703 or any other person who makes a false statement in connection with an application for a refund is guilty of a misdemeanor and, upon conviction, shall be punished by a fine of not more than five hundred dollars, or by imprisonment in the county jail for not more than ninety days, or by both such fine and imprisonment.

(3) Any person required under any title administered by the department to pay any tax or estimated tax, or required under such title or by regulations made under authority thereof to make a return, keep any records, or supply any information, who willfully fails to pay such tax or estimated tax, make such return, keep such records, or supply such information, at the time or times required by law or regulations, in addition to other penalties provided by law, is guilty of a misdemeanor and, upon conviction thereof, shall be fined not more than fifty thousand dollars, or one hundred thousand dollars in the case of a corporation, or imprisoned not more than one year, or both, together with the costs of prosecution.

(4) Any person who willfully makes and subscribes any return, statement, or other document, which contains or is verified by a written declaration that it is made under the penalties of perjury, and which he or she does not believe to be true and correct as to every material matter, is guilty of a class 5 felony and, upon conviction thereof, shall be punished as provided in section 18-1.3-401, C.R.S., or shall be punished by a fine of not more than one hundred thousand dollars, or five hundred thousand dollars in the case of a corporation, or by both such fine and imprisonment, together with the costs of prosecution.

(5) Any person who willfully aids or assists in, or procures, counsels, or advises the preparation or presentation under, or in connection with any matter arising under any title administered by the department, or a return, affidavit, claim, or other document, which is fraudulent or is false as to any material matter, whether or not such falsity or fraud is with the knowledge or consent of the person authorized or required to present such return, affidavit, claim, or document, is guilty of a class 5 felony and, upon conviction thereof, shall be punished as provided in section 18-1.3-401, C.R.S., or shall be punished by a fine of not more than one hundred thousand dollars, or five hundred thousand dollars in the case of a corporation, or by both such fine and imprisonment, together with the costs of prosecution.

Source: L. 77: Entire section added, p. 1773, § 2, effective July 1. L. 85: Entire section R&RE, p. 1253, § 4, effective January 1, 1986. L. 89: (1), (2), (4), and (5) amended, p. 852, § 144, effective July 1. L. 2002: (1), (2), (4), and (5) amended, p. 1556, § 348, effective October 1. L. 2011: (2) amended and (2.5) added, (HB 11-1265), ch. 228, p. 977, § 2, effective May 27. L. 2020, 1st Ex. Sess.: (2) amended, (HB 20B-1004), ch. 3, p. 25, § 7, effective December 7. L. 2023: (1) amended, (HB 23-1293), ch. 298, p. 1797, § 66, effective October 1.

Editor's note: Section 5 of chapter 228, Session Laws of Colorado 2011, provides that the act amending subsection (2) and adding subsection (2.5) applies to all claims for refunds of sales or use tax filed with the department of revenue before, on, or after May 27, 2011.

Cross references: (1) For civil penalties, see §§ 39-22-621, 39-23.5-110, 39-26-115, 39-26-118, 39-26-204, 39-27-105, 39-28-108, and 39-29-115.

(2) For the legislative declaration contained in the 2002 act amending subsections (1), (2), (4), and (5), see section 1 of chapter 318, Session Laws of Colorado 2002. For the legislative declaration in the 2011 act amending subsection (2) and adding subsection (2.5), see section 1 of chapter 228, Session Laws of Colorado 2011. For the legislative declaration in HB 20B-1004, see section 1 of chapter 3, Session Laws of Colorado 2020, First Extraordinary Session.

ANNOTATION

The department of revenue is a "victim" under § 18-1.3-602 and entitled to restitution when a defendant is convicted of evading the state's marijuana excise taxes under subsection (1) of this section. People v. Le, 2022 COA 32, 512 P.3d 146.

A person who willfully fails to pay sales taxes due the state at the time required may be charged under subsection (2) and prosecuted for commission of a felony. People v. Rea, 7 P.3d 995 (Colo. App. 1999).

Subsection (2) applies to persons required to collect, account for, or pay over any tax; whereas subsection (3) applies to any person required to pay any tax. Subsections (2) and (3) cover different behavior, and a person charged with violating subsection (2), which is a felony, need not be also charged with violating subsection (3), which is a misdemeanor. People v. Rea, 7 P.3d 995 (Colo. App. 1999).