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i_taxtask_2017a_2017-07-11t10:06:11z3 Hearing Summary

Date: 07/11/2017

Location: RM 271

Final

Overview of House Bill 17-1216 and Bill Request Information



SALES AND USE TAX SIMPLIFICATION TASK FORCE


Votes: View--> Action Taken:
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10:25 AM -- Overview of House Bill 17-1216 and Bill Request Information




Esther van Mourik discussed House Bill 17-1216 and the charge of the task force. House Bill 17-1216 created the Sales and Use Tax Simplification Task Force. The 15-member task force is required to meet at least eight times before its repeal on July 1, 2020, in order to study the necessary components of a simplified sales and use tax system for both the state and local governments. It is required to consider the feasibility of potential changes to administration of state and local sales and use taxes and to make annual reports to the Legislative Council by November 1 of each year that may or may not include recommendations for legislation.



The task force is charged with studying the following policy issues:

  • the necessary components of a simplified sales and use tax system for both state and local governments, including home rule municipalities and counties;
  • opportunities and challenges within existing fiscal frameworks to adopt innovative revenue-neutral solutions that do not require constitutional amendments or voter approval;
  • the feasibility of having a third-party entity responsible for state or local sales and use tax administration, return processing, and audits;
  • the feasibility of making audits of retailers more uniform for all state and local taxing jurisdictions in the state;
  • the feasibility of utilizing certified software for sales and use tax administration and collection of state and local sales and use tax; and
  • the feasibility of utilizing a single sales and use tax return for state and local taxing jurisdictions.



Ms. van Mourik discussed the bill request process and applicable deadlines, including the need to hold the meeting to request draft legislation by September 22, 2017, and the meeting to approve draft legislation by November 3, 2017.



10:36 AM



Ms. van Mourik responded to questions from task force members related to the bill request process, the bill introduction process, the task force’s scope of work, and details related to the annual report.



10:40 AM



Ms. van Mourik discussed national groups working in the area of sales and use taxes, including:

  • the National Conference of State Legislatures Sales Tax Task Force, which started to look at issues surrounding marketplace fairness and national sales tax collection issues and national simplification issues;
  • the Streamlined Sales Tax Governing Board, which consists of states that have signed on to simplify their sales tax system;
  • the Council on State Taxation; and
  • the Multistate Tax Commission, which Colorado is a member.



Ms. van Mourik responded to questions from task force members related to whether the groups mentioned previously are business-focused or governmentally-focused; other groups that the task force may want to hear from, including the Tax Foundation; and whether representatives from municipalities are represented in any of the previously mentioned groups.



Senator Neville requested information related to which states are members of the Multistate Tax Commission.



Representative Kraft-Tharp asked task force members to makes suggestions for other groups the task force should hear from at future meetings.



10:46 AM



The task force took a brief recess.