I_TaxTask_2019A 07/22/2019 10:02:19 AM Committee Summary PUBLICSTAFF SUMMARY OF MEETINGINTERIM COMMITTEE SALES AND USE TAX SIMPLIFICATION TASK FORCE Date 07/22/2019 Attendance Bryan Archer E Paul Archer X Kristin Baumgartner X Kevin Bommer E Ben Dahlman X Steve Ellington X Heather Pezzella X Neil Pomerantz X Brendon Reese X Tate E Judith Birch Vorndran X Williams A. E Ryan Woods X Van Winkle X Kraft-Tharp X X = Present, E = Excused, A = Absent, * = Present after roll call Time 10:02:19 AM to 04:03:48 PM Place HCR 0112 This Meeting was called to order by Representative Kraft-Tharp This Report was prepared by Luisa Altmann Hearing Items Action Taken hCall to Order Committee Discussion Only hDepartment of Revenue Updates Committee Discussion Only hDiscussion of Use Tax Committee Discussion Only hDepartment of Revenue Software System Update Committee Discussion Only hLunch Break Committee Discussion Only hSenate Bill 19-006 Procurement Update Committee Discussion Only hThird-Party Sales Tax Administration Presentation Committee Discussion Only hDiscuss the Future of the Task Force Committee Discussion Only hPublic Comment Committee Discussion Only Call to Order - Committee Discussion Only 10:03:36 AM Representative Kraft-Tharp made introductory remarks. Department of Revenue Updates - Committee Discussion Only 10:04:34 AM Josh Pens and Mark Nguyen, Colorado Department of Revenue, continued with their presentation from the meeting on June 12, 2019. A copy of their presentation can be found here:http://leg.colorado.gov/sites/default/files/images/committees/2017/department_of_revenue_presentation.pdf 10:10:00 AM Mr. Pens and Mr. Nguyen responded to questions from members of the task force, including a discussion of tourism tax districts, the selection of correct location codes based on the change to destination sourcing, and department outreach to the business community. 10:27:38 AM Staff from the Department of Revenue continued with the presentation. 10:39:24 AM Mr. Nguyen responded to questions from members of the task force regarding the number of new sales tax accounts that have been created by out-of-state retailers. The task force requested information related to how much in taxes have been collected incrementally from the sales tax change. Mr. Pens responded to questions from members of the task force related to the authority of state-collected tax municipalities to require businesses to have sales tax licenses and a variety of other topics. 11:00:56 AM Staff from the Department of Revenue showed a video that can be found here: https://www.youtube.com/watch?v=klhOFu6U77o 11:01:20 AM Staff from the Department of Revenue responded to additional questions from members of the task force. Discussion of Use Tax - Committee Discussion Only 11:05:33 AM Mr. Pens from the Department of Revenue discussed use tax and responded to questions from members of the task force. 11:13:50 AM Jordan Fannon, Ping Identity, discussed the complexities of the state's sales and use tax system. 11:20:15 AM Andrea Riviezzo, Charlotte's Web, discussed the complexities related to use tax. 11:24:11 AM Vickie Hurst, LafargeHolcim, discussed the complexities related to use tax. 11:28:34 AM Kristie Hagberg, METCO Landscape, discussed the complexities related to use tax. 11:33:45 AM Task force discussion ensued related to use tax. Department of Revenue Software System Update - Committee Discussion Only Attachment Tag File Name Attachment A http://www2.leg.state.co.us/CLICS/CLICS2019A/commsumm.nsf/0/957FBF999B02...$File/Attachment A.pdf?OpenElement Attachment A.pdf 11:46:30 AM Lu Cordova, Executive Director of the Department of Revenue, discussed the formation of a partnership structure for the development and implementation of the software being designed pursuant to Senate Bill 19-006. She was joined at the table by Scott McKimmy, IT Director, Department of Revenue. A handout was provided (Attachment A). Lunch Break - Committee Discussion Only Senate Bill 19-006 Procurement Update - Committee Discussion Only Attachment Tag File Name Attachment B http://www2.leg.state.co.us/CLICS/CLICS2019A/commsumm.nsf/0/14ED1BEB95F4...$File/Attachment B.pdf?OpenElement Attachment B.pdf Attachment D http://www2.leg.state.co.us/CLICS/CLICS2019A/commsumm.nsf/0/194D70EB10E7...$File/Attachment D.pdf?OpenElement Attachment D.pdf Attachment C http://www2.leg.state.co.us/CLICS/CLICS2019A/commsumm.nsf/0/72AD7BC570B6...$File/Attachment C.pdf?OpenElement Attachment C.pdf 01:32:43 PM Dr. Theresa Szcurek, Executive Director, and Nancy Dierker, Director of Procurement and Vendor Services, Governor's Office of Information Technology (OIT), provided an update on the procurement process for Senate Bill 19-006. A copy of the presentation can be found in Attachment B. 01:42:18 PM Director Szcurek and Ms. Dierker responded to questions from members of the task force. 01:45:17 PM Task force discussion ensued. 01:56:19 PM Director Szcurek and Jon Gottsegen, OIT, discussed the Global Information System (GIS) database requirement in the bill. A copy of the presentation and an associated handout is provided in Attachments C and D. 02:09:31 PM Task force discussion ensued. 02:19:09 PM Mr. Gottsegen and Director Szcurek continued with the presentation. Third-Party Sales Tax Administration Presentation - Committee Discussion Only Attachment Tag File Name Attachment E http://www2.leg.state.co.us/CLICS/CLICS2019A/commsumm.nsf/0/874FC89E9A79...$File/Attachment E.pdf?OpenElement Attachment E.pdf 02:28:45 PM Jared Walczak, Senior Policy Analyst, Tax Foundation, provided a presentation to the task force on the topic of using third-party vendors for local sales tax administration. A copy of the presentation can be found in Attachment E. 03:00:43 PM Mr. Walczak responded to questions from members of the task force. Discuss the Future of the Task Force - Committee Discussion Only 03:08:45 PM Esther Van Mourik, Office of Legislative Legal Services, moderated a discussion related to the future of the task force. Task force discussion ensued. Public Comment - Committee Discussion Only 03:38:36 PM Laura Williams, Martin Marietta, provided testimony to the task force. 03:43:15 PM Patrick O'Neil, Vern's Toffee House, provided testimony to the task force. 03:59:03 PM Tony Gagliardi, the National Federation of Independent Business and the Coalition to Simplify Colorado Sales Tax, provided testimony to the task force. 04:03:48 PM The committee adjourned.