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I_TaxTask_2019A 07/22/2019 10:02:19 AM Committee Summary

PUBLIC
STAFF SUMMARY OF MEETING
INTERIM 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
Call to Order Committee Discussion Only
Department of Revenue Updates Committee Discussion Only
Discussion of Use Tax Committee Discussion Only
Department of Revenue Software System Update Committee Discussion Only
Lunch Break Committee Discussion Only
Senate Bill 19-006 Procurement Update Committee Discussion Only
Third-Party Sales Tax Administration Presentation Committee Discussion Only
Discuss the Future of the Task Force Committee Discussion Only
Public 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


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

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


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.