A0EDDF28A2BEB68D872584F60060FB2A Hearing Summary

Representative Kraft-Tharp and Representative Van Winkle introduced HB 20-1023. The bill repeals the current hold harmless provisions for vendors that use the currently available state-certified electronic address databases, used for determining the jurisdiction(s) to which sales tax is owed, 90 days after the implementation of the new Geographic Information System (GIS) database.  Once the GIS database is implemented, the Department of Revenue (DOR) is required to immediately notify vendors that it is available for use.  This bill then establishes a hold harmless provision for vendors that use the state's GIS database to determine sales and use tax rates for addresses and taxing jurisdictions.  The hold harmless provision also applies to vendors that use third-party databasea, which are vertified as containing the most current information from the state GIS database.  Vendors using the GIS database are not liable for any taxes, fees, or other charges that result from errors from using the state GIS database.

The bill sponsors responded to questions from the committee.

Neil Pomerantz, Colorado Chamber of Commerce, testified in support of the bill.

Laura Long, Colorado Competitive Council and the Jefferson County Business Lobby, testified in support of the bill.

Dave Davia, Colorado Association of Mechanical and Plumbing Contractors (CAMPC) and the Coalition to Simplify Colorado Sales Tax, testified in support of the bill.

The bill sponsors distributed amendment L.001 to the committee (Attachment B).

A memo from Legislative Council Staff regarding the fiscal impact of amendment L.001 was also distributed (Attachment C).

The bill sponsors made closing remarks.