I_TaxTask_2019A 09/11/2019 09:01:43 AM Committee Summary

Director Theresa Szczurek, Governor's Office of Information Technology (OIT), introduced Scott McKimmy, OIT, who provided a presentation to the task force. A copy of the presentation is provided as Attachment A.

Task force discussion ensued.

Mr. McKimmy continued with the presentation.

Jon Gottsegen, OIT, continued with the presentation.

Mr. Gottsegen and Mr. McKimmy responded to questions from the task force.

Mr. McKimmy continued with the presentation.

Mr. Gottsegen, Mr. McKimmy, Director Cordova, and Tracy Winchester, Department of Revenue, responded to questions from the task force.

Mr. McKimmy continued with the presentation.

Mr. Gottsegen responded to questions from the task force.

Mr. McKimmy and Mr. Gottsegen continued with the presentation.

Mr. Gottsegen responded to questions from the task force.

Mr. McKimmy continued with the presentation.

Ms. Winchester continued with the presentation.

Task force discussion ensued.

The task force took a brief recess.

The task force reconvened.

Michelle Colin and Trey Standley, Office of the State Auditor, provided a presentation to the task force. A copy of the presentation is provided as Attachment B and a copy of the report is provided as Attachment C. Additionally, a memorandum from the Office of Legislative Legal Services addressing the actions of the Tax Expenditure Interim Study Committee was provided to the task force and is provided as Attachment D.

Ed DeCecco, Office of Legislative Legal Services, provided additional information related to the activities of the Tax Expenditure Evaluation Interim Study Committee. Mr. DeCecco responded to questions from the task force.

The task force recessed.

The task force reconvened.

Brendon Reese, Department of Revenue, provided a presentation to the task force related to out of state retailers.

He provided two handouts to the task force (Attachments E and F).

Mr. Reese responded to questions from other members of the task force and task force discussion ensued.

Meredith Moon, Legislative Council Staff (LCS), provided information related to the LCS forecast estimates.

Task force discussion ensued.

Representative Kraft-Tharp asked members of the audience to introduce themselves.

The committee took a break for lunch.

The task force reconvened.

Mark Turner, Colorado Nonproft Association, provided testimony to the task force.

Tony Gagliardi, National Federation of Independent Business and Simplify Colorado Sales Tax, provided testimony to the task force.

Representative Kraft-Tharp made introductory remarks.

Ed DeCecco, Office of Legislative Legal Services, provided an overview of the bill request process.

The task force discussed the first bill idea regarding the continuation of the task force. A memorandum was provided by the Office of Legislative Legal Services on the topic (Attachment G). The task force discussed what the task force would work on, as outlined in the attachment.

The task force discussed adding additional categories for future task force discussion to include options for simplifying the process to claim tax exemptions that are offerd by the state, examining the dollar amount that applies to destination sourcing, and creating a catch-all category for other topics that may come up.

The task force discussed the time period for which the task force would be extended and agreed on a five-year period. The task force also discussed removing the requirement that Department of Regulatory Agencies perform a sunset review.

VOTE: The task force voted to draft legislation to continue the task force.  Pursuant to Joint Rule 24A (d)(2.7)(A), only legislative members of the task force may vote on whether to request legislation, and the requests must be approved by a majority of the legislative task force members.

Senator Tate: Yes 

Senator Williams: Excused

Representative Van Winkle: Yes

Representative Kraft-Tharp: Yes

Result: Passes 3-0 with 1 excused

The task force discussed the second bill idea of adding a hold harmless provision for businesses that rely on the state's GIS system. The task force discussed adding the requirement that the state would have to prove that the GIS system provides a certain level of accuracy.

VOTE: The task force voted to draft legislation to add a hold-harmless provision for businesses that rely on the state's GIS system.

 

Senator Tate: Yes

Senator Williams: Excused

Representative Van Winkle: Yes

Representative Kraft-Tharp: Yes

Result: Passes 3-0 with 1 excused

 

 

The task force discussed a third bill draft idea involving removing the requirement that the Department of Revenue certify third-party address locator databases once the GIS system is in place.

VOTE: The task force voted to draft legislation related to removing the requirement that the Department of Revenue certify third-party address locator databases once the GIS system is in place.

 

Senator Tate: Yes

Senator Williams: Excused

Representative Van Winkle: Yes

Representative Kraft-Tharp: Yes

Result: Passes 3-0 with 1 excused

 

Task force discussion continued on the issue of late sales tax licensing and remittance in home rule cities and asking home rule cities to discuss simplifying use tax, including standardized forms.

Ed DeCecco provided information on the Colorado Commission on Taxation that was in existence previously.