S_FIN_2019A 01/22/2019 02:01:16 PM Committee Summary

Senator Williams, bill sponsor, introduced Senate Bill 19-006.  The bill requires the Department of Revenue to conduct a sourcing method for the development of an electronic sales and use tax simplification system.  She also distributed Amendment L.001 (Attachment A), an accompanying Fiscal Note Memorandum (Attachment B), and Amendment L.003 (Attachment C).

Senator Williams responded to questions about the amendments and the bill from the committee related to the role of end users and the bill's impact on home rule communities.

Mr. Tony Gagliardi, Colorado State Director of the National Federation of Independent Business, testified in support of the bill.  Mr. Gagliardi responded to a question from the committee.

Mr. Edward Rothschild, representing AlphaGraphics Print Shops and the Simplify Colorado Sales Tax Board, testified in support of the bill.

Mr. Chris Howes, President of the Colorado Retail Council, testified in support of the bill.

Ms. Rachel Beck, Colorado Springs Chamber of Commerce and Economic Development Corporation, testified in support of the bill.

Mr. Brendon Reese, Deputy Director of Tax Policy and Legal Analysis for the Colorado Department of Revenue, responded to questions from the committee about end user engagement, home rule cities, implementation, and the involvement of small businesses.

Mr. Jimmy Burds, Colographic Inc. and Good Business Colorado, testified in support of the bill.  Mr. Burds responded to a comment from the committee.

Senator Williams made closing comments on the bill.

Senators Fenberg and Tate, bill sponsors, introduced Senate Bill 19-023.  The bill provides limited exemptions from the securities registration and securities broker-dealer and salesperson licensing requirements for persons dealing in digital tokens for consumptive purposes.  The senators responded to questions from the committee related to technological applications and witness expertise.

Mr. Eric Kintner, Colorado Blockchain Council, testified in support of the bill.  Mr. Kintner responded to questions from the committee related to legal definitions in the bill and its implementation.

Senators Fenberg and Tate responded to comments from the committee.  Mr. Kintner responded to further questions from the committee related to legal definitions in the bill and the investment potential of cryptocurrencies that are offered for consumptive purposes.

Mr. Kintner and Senator Tate responded to a question from the committee related to examples of consumptive uses of digital tokens.

Senator Tate and other committee members made closing comments on the bill.

The committee took a recess.

The committee came back to order.

Senator Court, bill sponsor, introduced Senate Bill 19-035.  The bill specifies that the period of time wherein a tax must be assessed is extended in the case of a taxpayer whose assets are in the control or custody of a court or in the case of a taxpayer who has filed bankruptcy proceedings.  Senator Court responded to clarifying questions from the committee related to the bill.

Mr. Brendon Reese, Deputy Director of Tax Policy and Legal Analysis for the Department of Revenue, gave testimony in support of the bill.  Mr. Reese responded to questions from the committee related to the relationship between tax collection and bankruptcy.

Senator Court commented on the committee's questions.  Mr. Reese responded to a follow-up question from the committee related to the frequency that the new time limit would be applied.

Senator Tate, bill sponsor, introduced Senate Bill 19-024 and distributed a memorandum describing laws regarding the payment of taxes by electronic fund transfer (Attachment D).  The bill authorizes the executive director of the Department of Revenue to require the remittance of severance taxes electronically and allows the department to promulgate rules governing such electronic payment.

Ms. Esther van Mourik, Office of Legislative Legal Services, described the memo.