The taxes for any period, together with the interest thereon and penalties with respect thereto, imposed by this part 2 shall not be assessed, nor shall any notice of lien be filed, or distraint warrant issued, or suit for collection be instituted, nor any other action to collect the same be commenced, more than three years after the date on which the tax was or is payable, except as set forth in sections 29-2-208 (2)(a)(III) and 29-2-302 (5)(b), nor shall any lien continue after such period, except for taxes assessed before the expiration of such period, notice of lien with respect to which has been filed prior to the expiration of such period, in which cases such lien shall continue only for one year after the filing of notice thereof. In the case of a false or fraudulent return with intent to evade tax, the tax, together with interest and penalties thereon, may be assessed, or proceedings for the collection of such taxes may be begun at any time. Before the expiration of such period of limitation, the taxpayer and the executive director of the department of revenue may agree in writing to an extension thereof, and the period so agreed on may be extended by subsequent agreements in writing.
Source: L. 43: p. 541, § 1. CSA: C. 144, § 47. CRS 53: § 138-6-42. C.R.S. 1963: § 138-5-42. L. 2017: Entire section amended, (SB 17-112), ch. 144, p. 483, § 2, effective April 18. L. 2024: Entire section amended, (SB 24-025), ch. 144, p. 581, § 49, effective July 1, 2025.
ANNOTATION
Section 39-21-107 applicable where use taxes assessed, no return filed. It is the intent of the general assembly that § 39-21-107, rather than this section, should be the controlling statute of limitations in the case where use taxes are assessed but no return is filed. Dye Constr. Co. v. Dolan, 41 Colo. App. 293, 589 P.2d 497 (1978); CF&I Steel Corp. v. Charnes, 637 P.2d 324 (Colo. 1981).
Statute of limitations applies. Where a taxpayer erroneously pays use taxes owed to one local government to another local government, this section bars any untimely attempt under § 29-2-106.1 (5) and (6) to force the local government that received the taxes to forward them to the local government that should have received them. As a consequence, the taxpayer remains liable for payment of the taxes to the correct local government. Qwest Corp. v. City of Northglenn, 2014 COA 55, 351 P.3d 505.
Unlimited waivers of limitation period extend for reasonable time or until terminated. Unlimited waivers of this section's limitations period are generally construed to extend either for a reasonable time or until the waiver is terminated by either party after reasonable notice. CF&I Steel Corp. v. Charnes, 637 P.2d 324 (Colo. 1981).