I_TaxTask_2018A 09/27/2018 10:05:23 AM Committee Summary PUBLICSTAFF SUMMARY OF MEETINGINTERIM COMMITTEE SALES AND USE TAX SIMPLIFICATION TASK FORCE Date 09/27/2018 Attendance Brendon Reese X Bruce Nelson X Bryan Archer X Heather Pezzella E Judith Birch Vorndran * Kevin Bommer X Kristin Baumgartner X Neil Pomerantz X Paul Archer * Steve Ellington X Tracy Hines X Van Winkle X Williams A. X Neville T. X Kraft-Tharp X Time 10:05:23 AM to 11:25:46 AM Place SCR 357 This Meeting was called to order by Kraft-Tharp This Report was prepared by Kori Donaldson Hearing Items Action Taken hImplementation of South Dakota v. Wayfair Decision Committee Discussion Only hPublic Comment Committee Discussion Only hConsideration of Draft Bill Committee Discussion Only hConsideration of Draft Annual Report Committee Discussion Only hDiscussion of 2019 Potential Legislative Interim Activities Committee Discussion Only Implementation of South Dakota v. Wayfair Decision - Committee Discussion Only 10:07:58 AM Mr. Brendon Reese, representing the Department of Revenue, provided an update about the department's plans with regard to implementing collection of sales tax from online sales made by out-of-state retailers. He responded to task force questions. Discussion turned to a request from the department for additional funding for FY 2018-19 that was considered and denied by the Joint Budget Committee. 10:14:24 AM Mr. Reese responded to additional questions and comments from the task force. Mr. Bommer discussed implementation at the local level. 10:07:15 AM The meeting was called to order. Public Comment - Committee Discussion Only Attachment Tag File Name Attachment A http://www2.leg.state.co.us/CLICS/CLICS2018A/commsumm.nsf/0/E5F425A933EA...$File/Attachment A.pdf?OpenElement Attachment A.pdf 10:19:48 AM Mr. Jeff Hansen, representing the City of Golden, testified about the implementation of online sales tax collections following the South Dakota v. Wayfair decision and about the draft legislation under consideration by the committee. 10:21:14 AM Mr. Ryan Woods, representing Xcel Energy, testified about potential meeting topics for the 2019 legislative interim and the draft legislation under consideration by the task force. A copy of Mr. Woods' testimony is appended as Attachment A. 10:32:39 AM Mr. Woods continued his testimony. He spoke to the complexity of collecting and remitting sales tax in the state. He expressed concerns with how taxes are filed with the Department of Revenue. 10:40:21 AM Ms. Gini Pingenot, representing Colorado Counties, Inc. testified about the uncertainties at the county level associated with online sales tax collections from out-of-state retailers. Consideration of Draft Bill - Committee Discussion Only Attachment Tag File Name Attachment B http://www2.leg.state.co.us/CLICS/CLICS2018A/commsumm.nsf/0/600F4C70EF86...$File/Attachment B.pdf?OpenElement Attachment B.pdf Attachment C http://www2.leg.state.co.us/CLICS/CLICS2018A/commsumm.nsf/0/A9FF1139F329...$File/Attachment C.pdf?OpenElement Attachment C.pdf 10:46:23 AM Representative Kraft-Tharp discussed the process to review draft bill #1 and amendments. Ms. Esther van Mourik explained amendment #7 (Attachment B) and responded to questions from the tax force. Mr. Reese also responded to task force questions. 10:59:58 AM Motion Amend amendment #7, Page 1, line 21, strike “or county.” Moved Williams A. Seconded Van Winkle Brendon Reese Excused Bruce Nelson Excused Bryan Archer Excused Heather Pezzella Excused Judith Birch Vorndran Excused Kevin Bommer Excused Kristin Baumgartner Excused Neil Pomerantz Excused Paul Archer Excused Steve Ellington Excused Tracy Hines Excused Van Winkle Williams A. Neville T. Kraft-Tharp YES: 0 NO: 0 EXC: 11 ABS: 0 FINAL ACTION: Pass Without Objection 11:01:00 AM Motion Move amendment #7 to Bill 1 (Attachment C). Moved Kraft-Tharp Seconded Williams A. Brendon Reese Excused Bruce Nelson Excused Bryan Archer Excused Heather Pezzella Excused Judith Birch Vorndran Excused Kevin Bommer Excused Kristin Baumgartner Excused Neil Pomerantz Excused Paul Archer Excused Steve Ellington Excused Tracy Hines Excused Van Winkle Williams A. Neville T. Kraft-Tharp YES: 0 NO: 0 EXC: 11 ABS: 0 FINAL ACTION: Pass Without Objection 11:02:21 AM Motion Recommend Bill 1 to Legislative Council for introduction in the 2019 legislative session. Moved Williams A. Seconded Van Winkle Brendon Reese Excused Bruce Nelson Excused Bryan Archer Excused Heather Pezzella Excused Judith Birch Vorndran Excused Kevin Bommer Excused Kristin Baumgartner Excused Neil Pomerantz Excused Paul Archer Excused Steve Ellington Excused Tracy Hines Excused Van Winkle Williams A. Neville T. Kraft-Tharp YES: 0 NO: 0 EXC: 11 ABS: 0 FINAL ACTION: Pass Without Objection 11:02:24 AM Discussion continued about amendment #7. Consideration of Draft Annual Report - Committee Discussion Only 11:08:23 AM Ms. Kori Donaldson, Legislative Council Staff, discussed the content of the 2018 task force final report and responded to questions and suggestions from members of the task force about the report. Discussion of 2019 Potential Legislative Interim Activities - Committee Discussion Only 11:09:39 AM The task force discussed potential agenda items for the 2019 legislative interim. Possible discussion topics included Bill 1, online sales tax collections from out-of-state retailers by local jurisdictions, modifications to the use tax, the list of requirements for a simplified electronic sales tax system identified in House Bill 18-1022, and simplified sales tax remittance forms. 11:14:15 AM The task force members next provided feedback about some of the most and least helpful discussions conducted by the task force during the 2018 interim. 11:25:46 AM Committee Adjourned