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i_taxtask_2018a_2018-08-22t10:01:34z6 Hearing Summary




PUBLIC
BILL SUMMARY For COMMITTEE DISCUSSION

INTERIM COMMITTEE  SALES AND USE TAX SIMPLIFICATION TASK FORCE
Date Aug 22, 2018      
Location HCR 0107



Committee Discussion - Committee Discussion Only


01:29:17 PM  

Representative Kraft-Tharp explained the legislative bill request process.  Members of the task force commented on the process. Representative Kraft-Tharp introduced the possibility of updating House Bill 13-1295, which implemented the minimum requirements set forth in the federal "Marketplace Faireness Act of 2013."  Task force members received a one-page description of the bill, prepared by the Office of Legislative Legal Services (Attachment D), and a copy of the bill (Attachment E).  Ms. van Mourik talked the committee through Attachment D.  Mr. Reese responded to the possibility of requesting a bill draft to update the language in HB 13-1295.  He said that he does not want the draft to be limited to the scope of HB 13-1295.  Task force discussion ensued.

01:44:21 PM  

Ms. van Mourik responded to a question from the task force about whether updating HB 13-1295 should address sales tax collections from remote sellers. Task force discussion about whether a bill draft to update HB 13-1295 should be introduced, and, if so, what should be included in the draft legislation.

01:55:23 PM  

Mr. Reese suggested potential legislation that would revise statutory language to conform with the South Dakota v. Wayfair decision. Task force discussion ensued.

01:59:13 PM  

Ms. Vorndran shared her concerns with creating a taxability or exemption matrix. Other task force members commented on the relative merits of creating and maintaining a taxability or exemption matrix.

02:15:53 PM  

Discussion continued about whether a matrix should include taxable items or exempt items. Mr. Reese commented on how DOR could incorporate a taxability or exemption matrix into its current taxpayer resources.

02:25:50 PM  

The task force discussed next steps following the review of the responses to the HB 18-1022 RFI. In response to a question from the task force, Ms. van Mourik explained next steps in the solicitation process and whether legislation is required. Various task force members commented on whether DOR should proceed with solicitation of an electronic sales tax system. Representative Kraft-Tharp explained why she thought it might be preferable to move forward with solicitation through legislation, rather than through the procurement process. Discussion ensued.

02:46:13 PM  

Discussion continued about soliciting an electronic sales tax system.  Mr. Jack Wylie, representing the Department of Personnel and Administration, responded to questions about whether an appropriation is required prior to solicitation under the State Procurement Code.  He responded to additional questions.

02:48:32 PM  

Discussion returned to the topic of whether there should be draft legislation requiring DOR to solicit an electronic sales tax system.

03:02:00 PM  

The committee recessed.

03:19:00 PM  

The committee returned to order.



03:20:59 PM
Motion Request draft legislation to direct the Department of Revenue to solicit and implement an electronic sales tax system that creates a taxability or exemption matrix, a single point of remittance, an address locator, and an online license application and registration tool.
Moved Williams A.
Seconded Neville T.
Archer Bryan Excused
Archer Paul Excused
Baumgartner Kristin Excused
Bommer Kevin Excused
Ellington Steve Excused
Hines Tracy Excused
Nelson Bruce Excused
Pezzella Heather Excused
Pomerantz Neil Excused
Reese Brendon Excused
Van Winkle
Vorndran Judith Birch Excused
Williams A.
Neville T.
Kraft-Tharp
YES: 0   NO: 0   EXC: 11   ABS:  0   FINAL ACTION:  Pass Without Objection
03:21:02 PM  

Discussion continued about the requested legislation.

03:22:02 PM  
The task force members discussed the next meeting and when meeting materials for the next meeting will be made available.