i_taxtask_2017a_2017-09-15t09:02:53z0 Hearing Summary
Date: 09/15/2017
Location: RM 271
Final
Task Force Discussion
SALES AND USE TAX SIMPLIFICATION TASK FORCE
Task Force Discussion
SALES AND USE TAX SIMPLIFICATION TASK FORCE
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09:03 AM -- Task Force Discussion
Representative Kraft-Tharp and other task force members discussed the challenges that the task force is trying to address.
The task force discussed:
- the complexity of the current sales tax system and the challenges this presents for voluntary compliance by businesses operating in multiple jurisdictions;
- ways that the task force can help simplify the sales tax system to make it easier for both businesses and governments;
- how to maintain home rule municipalities' autonomy over the administration of the sales tax system within their own jurisdiction;
- how local taxing jurisdictions are potentially missing out on sales tax revenue because of the complexity of the system and businesses filing incorrectly;
- how any solution the task force proposes will need to include both the state and statutory cities and home rule municipalities;
- how solutions that have worked in other states may not work within Colorado's unique system;
- issues related to the current address locator system, how the Department of Revenue is working with the certified service providers and home rule municipalities to improve the system, and potential issues with the 95 percent accuracy requirement currently in statute;
- how complicated the current sales tax remittance process is, especially for small businesses;
- the potential benefits of a centralized, easy-to-use registration system; and
- the importance of sales tax revenue to municipalities.