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I_TaxTask_2022A 07/13/2022 10:00:42 AM Committee Summary

PUBLIC
STAFF SUMMARY OF MEETING
INTERIM COMMITTEE  SALES AND USE TAX SIMPLIFICATION TASK FORCE
Date 07/13/2022
Attendance
Bryan Archer *
Paul Archer *
Bockenfeld X
Michelle Bush X
Meghan Dollar X
Leslie Edwards *
Kenneth Keeley X
Kipp X
Don Korte X
Tracy Kraft-Tharp X
Josh Pens X
Van Winkle X
Andrew Wheeler E
Ryan Woods X
Bridges X
Time 10:00:42 AM to 02:44:19 PM
Place Old State Library
This Meeting was called to order by Bridges
This Report was prepared by Luisa Altmann
Hearing Items Action Taken
Task Force Chair Election Chair and Vice Chair Election
Task Force Overview & Review of 2022 Sales Tax Legislation Committee Discussion Only
Task Force Member Introductory Remarks Committee Discussion Only
Updates from the Colorado Department of Revenue Committee Discussion Only
Lunch Lunch Break
General Discussion of Colorado Use Taxes Committee Discussion Only
Public Comment Committee Discussion Only
Other Items Committee Discussion Only

Task Force Chair Election - Chair and Vice Chair Election




10:03:00 AM
Motion Nominate Representative Kipp to serve as Task Force Chair
Moved Bridges
Seconded
Bryan Archer Excused
Paul Archer Excused
Bockenfeld
Michelle Bush
Meghan Dollar
Leslie Edwards Excused
Kenneth Keeley
Kipp
Don Korte
Tracy Kraft-Tharp
Josh Pens
Van Winkle
Andrew Wheeler Excused
Ryan Woods
Bridges
YES: 0   NO: 0   EXC: 4   ABS:  0   FINAL ACTION:  Pass Without Objection
10:03:32 AM  
Senator Bridges resigned as vice chair of the task force.


10:03:59 AM
Motion Nominate Senator Van Winkle to serve as Task Force Vice Chair
Moved Bridges
Seconded
Bryan Archer Excused
Paul Archer Excused
Bockenfeld
Michelle Bush
Meghan Dollar
Leslie Edwards Excused
Kenneth Keeley
Kipp
Don Korte
Tracy Kraft-Tharp
Josh Pens
Van Winkle
Andrew Wheeler Excused
Ryan Woods
Bridges
YES: 0   NO: 0   EXC: 4   ABS:  0   FINAL ACTION:  Pass Without Objection



Task Force Overview & Review of 2022 Sales Tax Legislation - Committee Discussion Only


10:05:28 AM  
David Hansen, Legislative
Council Staff, provided an overview of the task force.  The memo Mr.
Hansen reviewed can be found here:
https://leg.colorado.gov/sites/default/files/images/2022_sales_and_use_tax_simplification_task_force_charge_memo.pdf
10:09:29 AM  
Jason Gelender and
Jessica Herrera, Office of Legislative Legal Services, provided an overview
of sales and use tax legislation passed during the 2022 legislative session.
 The memo they reviewed can be found here:
https://leg.colorado.gov/sites/default/files/images/summary_of_sales_and_use_tax_legislation_enacted_during_the_2022_legislative_session.pdf
10:19:26 AM  
Staff responded to
questions from the task force regarding the scope of the task force.



Task Force Member Introductory Remarks - Committee Discussion Only


10:21:12 AM  
Members of the task
force introduced themselves and discussed priority areas of study for the
interim.



Updates from the Colorado Department of Revenue - Committee Discussion Only


10:30:39 AM  

Josh Pens and Brendon Reese, Colorado Department of Revenue, provided several updates to the task force related to the Sales and Use Tax Simplification (SUTS) system, the Senate Bill 21-260 retail delivery fee, the vendor fee, and the simplification of the state sales tax return.  A copy of the presentation slides can be found here: https://leg.colorado.gov/sites/default/files/images/cdor_simplification_...

10:36:33 AM  
Mr. Reese responded
to questions from the task force regarding updating the SUTS system to
collect lodging taxes, common concerns the department has heard regarding
the system, and implementation of the retail delivery fee remittance.
10:42:04 AM  
Mr. Pens described the Senate Bill 21-260 retail delivery fee.
10:51:29 AM  
Mr. Pens responded
to questions from the task force regarding the retail delivery fee, the
department's enforcement of several of the statutory provisions related
to the fee, taxation of the fee by home rule municipalities, appropriation
of the SUTS system programming costs to incorporate the retail delivery
fee, and available accounting software that is able to accommodate the
fee.
11:04:06 AM  
Mr. Pens continued the presentation with a discussion of the vendor fee.
11:13:07 AM  
Mr. Pens continued
the presentation with a discussion of potentially simplifying the state
sales tax return by moving away from site-based reporting to jurisdictional
reporting.
11:40:16 AM  
Mr. Pens responded
to questions from the task force regarding the potential simplification
of the state sales tax return.



Lunch - Lunch Break


11:59:51 AM  
The task force took
a lunch break.
01:34:40 PM  
The task force reconvened.



General Discussion of Colorado Use Taxes - Committee Discussion Only


01:35:05 PM  
Josh Pens, Department of Revenue, presented an overview of use taxes.
01:42:29 PM  
Mr. Pens responded to questions regarding use taxes.
01:48:31 PM  

Meghan Dollar, Colorado Municipal League (CML), presented on use taxes.  A copy of the presentation slides can be found here: https://leg.colorado.gov/sites/default/files/images/cml_presentation_on_...

01:55:29 PM  
Ms. Dollar responded to questions from the task force.
01:57:25 PM  
Monica Colbert Burton,
Rocky Mountain Mechanical Contractors Association and the Coalition to
Simplify Colorado's Sales Tax, provided an overview of the state's use
taxes.  The handout provided by Ms. Burton to the task force can be
found here:
https://leg.colorado.gov/sites/default/files/images/simplify_fact_sheet_july2022_002.pdf
02:00:23 PM  
Connie Zoerink, TaxOps.com, provided an overview of use taxes.
02:10:19 PM  
Matthew Groves, Colorado Automobile Dealers Association, provided an overview of use taxes for motor vehicles.
02:16:49 PM  
Mr. Groves responded to questions from the task force.



Public Comment - Committee Discussion Only


02:21:46 PM  

Laura Williams, representing Martin Marietta, provided testimony to the task force.  A copy of her testimony is provided as Attachment A.

02:26:15 PM  
Brian Grall, representing the Coalition to Simplify Colorado Sales Tax, the Rocky Mountain Region Promotional Products Association (RMRPPA), and LogoMyBiz.com, provided testimony to the task force.
02:34:11 PM  
Monica Colbert Burton, representing the Rocky Mountain Mechanical Contractors Association, provided testimony to the task force.
02:36:49 PM  
John Dundon, representing the Colorado Society of Enrolled Agents, submitted testimony to the task force (Attachment B).



Other Items - Committee Discussion Only


02:37:58 PM  
Jessica Herrera, Office of Legislative Legal Services, provided information related to the task force's scope.
02:40:27 PM  
Task force members
discussed potential agenda items for the July 27 meeting.



1. Office of Legislative Legal Services presentation on the Wayfair vs.
Lakewood lawsuit

2. Presentation from CML on issues cities have encountered when joining
and interfacing with the SUTS system

3. Continuation of the potential sales tax return form simplification discussion


02:44:19 PM   The committee adjourned.






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