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i_taxtask_2017a_2017-08-15t09:03:58z8 Hearing Summary

Date: 08/15/2017

Location: RM 271

Final

Public Comment



SALES AND USE TAX SIMPLIFICATION TASK FORCE


Votes: View--> Action Taken:
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04:16 PM -- Public Comment



04:16 PM --
Totsy Rees, Enterprise Holdings, read a statement from Meegan Wood-Trombley. The statement explained how Enterprise Holdings deals with the current complex system and that Enterprise requests that the task force explore a single licensure approach and uniform tax definitions to limit confusion among taxpayers and consumers.



04:22 PM --
Jeff Hansen, Finance Director for the City of Golden, testified in support of keeping most sales tax decisions in local tax offices rather than at the state government. Mr. Hansen discussed the potential for optional centralized licensing and remittance. Mr. Hansen also described the desire to maintain audit and enforcement efforts locally.



04:25 PM --
Trevor Vaughn, Manager of Tax and Licensing for the City of Aurora, testified that 70 percent of Aurora’s general fund revenue comes from sales and use taxes, making sales tax issues greatly important to the city. Relative to other cities in other states, this is a very high rate – for example, Cincinnati collects only 3 percent of its revenue in sales tax and Plano collects only 27 percent of its revenue in sales tax. Mr. Vaughn also discussed the importance of audit controls at a local level. Mr. Vaughn discussed the opportunity to simplify the system and also discussed Aurora's efforts to ease compliance for businesses, such as by adopting CML’s uniform sales tax definitions. Mr. Vaughn also discussed difficulties with the exemptions at the state level.



04:30 PM --
Joe Suppers, NodeCom, Inc., suggested that simplifying the state's sales and use tax system may help in attracting businesses to the state. Additionally, Mr. Supper discussed the role that the state's 2.9 percent sales and use tax has had in discouraging large scale data centers to locate in Colorado and encouraged the task force to examine adopting a sales and use tax exemption for data centers.



04:32 PM --
Nicole Heide, Accounting Manager with Food Services of America, provided testimony to the task force related to the impact of the complexity of the current sales and use tax system on their business as a food distributor company. Ms. Heide suggested the current system could be greatly simplified by having one place to register, one place for answers, and one place to file.



04:35 PM --
Jennifer Goodrum, Colorado Dental Association (CDA), discussed the impact that the current complexity of the state's sales and use tax system has on small local dental practices throughout the state. The CDA supports a single point of remittance and consistency in application.



04:40 PM --
Owen Nieberg, All About Braces, spoke about the impact of the current sales and use tax system on his 6-location orthodontic practice, including determining which products are taxable in each taxing jurisdiction. Mr. Nieberg discussed his desire for simpler, unified rules that make sense; simpler, unified filing; and rules that adhere to common sense across medicine, including not taxing the tools used in a practice.





04:44 PM



Representative Kraft-Tharp made closing remarks.





04:46 PM



The committee adjourned.