I_TaxTask_2021A 08/11/2021 10:02:00 AM Committee Summary

PUBLIC
STAFF SUMMARY OF MEETING
INTERIM COMMITTEE SALES AND USE TAX SIMPLIFICATION TASK FORCE

Date

08/11/2021

Time

10:02:00 AM to 04:17:16 PM

Place

Old State Library

This Meeting was called to order by

Bridges

This Report was prepared by

Luisa Altmann

Hearing Items	Action Taken
hSales and Use Taxes for Motor Vehicle Purchases	Committee Discussion Only
hDiscussion about Survey to Municipalities on Business Licensing	Committee Discussion Only
hOther Committee Discussion	Committee Discussion Only
hLunch	Committee Discussion Only
hSales and Use Tax Simplification System Demo and Discussion	Committee Discussion Only
hPublic Testimony	Committee Discussion Only

10:03:42 AM

The meeting was called to order. Matt Bishop, Legislative Council Staff, provided an overview of the agenda.

Sales and Use Taxes for Motor Vehicle Purchases - Committee Discussion Only


	10:08:08 AM	Josh Pens and Lu Ann Pyatt, Colorado Department of Revenue, presented to the committee on the topic of sales and use taxes for the purchases of motor vehicles. A copy of the presentation can be found here: http://leg.colorado.gov/sites/default/files/images/210810_sales_use_tax_...
	10:18:30 AM	Mr. Pens responded to questions from the committee regarding the latitude of county clerks in determining the taxable base for motor vehicle taxes and the training that is provided to county clerks, the possibility of generating a standard form for dealerships, the possibility of printing the taxable base on a receipt for the customer, and other aspects of the process. Mr. Pens discussed a bill from this past session that allows third parties to issue registrations. Mr. Woods discussed the idea of a held harmless provision for individuals purchasing a motor vehicle given the limited amount of control purchasers have in determining and remitting motor vehicle sales and use taxes. Mr. Pens discussed how statutory hold harmless provisions interact with purchases of motor vehicles.
	10:45:23 AM	Matthew Groves, Colorado Automobile Dealers Association, described the sales and use tax system for motor vehicle purchases from automobile dealers' perspective.
	10:54:24 AM	Mr. Groves responded to questions from the task force regarding this process. Task force discussion ensued regarding the Sales and Use Tax Simplification (SUTS) system, the DRIVES system, and the specific ownership tax.


	11:14:53 AM	David Hansen, Legislative Council Staff, and Meghan Dollar, Colorado Municipal League (CML), discussed a survey draft that CML plans to distribute to its member municipalities. The task force discussed the following: - a desire to examine any differences in large, medium, and small municipalities; - including a question on whether or not the licensing fees charged are statutory or administrative to help determine the amount of effort it would take to change or remove the fee; and - what information their municipality would like to see included in the SUTS system.


	11:27:44 AM	Matt Bishop, Legislative Council Staff, provided additional comments for the task force. The task force selected a date for its final meeting for Friday, October 22. Mr. Bishop discussed a letter that was sent to the task force last year from the Senate Finance Committee regarding Senate Bill 20-099, which can be found here: https://leg.colorado.gov/sites/default/files/images/210811_threshold_memo_from_sf_to_suts_comm.pdf. Mr. Bishop also discussed the sales and use tax expenditure evaluation reports produced by the Office of the State Auditor, which can be found here: https://leg.colorado.gov/sites/default/files/images/sales_and_use_tax_expenditure_evaluations_0.pdf


	11:34:47 AM	The task force recessed for lunch.
	11:35:07 AM	The task force reconvened.


	01:31:15 PM	Conan Royce, Emily Foley, Erin Neer, and Eren Yar, representatives from TTR and MUNIRevs, and Stephen Maguina, Department of Revenue, provided a demonstration of the Sales and Use Tax Simplification (SUTS) system. The system can be found here: https://colorado.munirevs.com/ The task force discussed the desire to add a bulk upload and download functionality to the system. The task force requested a monthly report with the total number of uses, total number of users, and a summary of feedback from cities and businesses.
	03:12:49 PM	Bryan Archer, Director of Finance for Arvada, spoke about Arvada's experience signing up for and using the SUTS system. Don Korte, Finance Director for Denver, spoke about Denver's experience using the SUTS system. Kristi Jackson, Sales Tax Manager for Colorado Springs, spoke about Colorado Springs' experience using the SUTS system. The municipal representatives responded to questions from the task force.
	03:48:58 PM	Flori Dickson, Alpha Graphics, provided information to the task force regarding her company's experience remitting through the SUTS system. Laura Williams, Martin Marietta Materials, provided information to the task force regarding her company's experience using the SUTS system. Ms. Dickson and Ms. Williams responded to questions from the task force.


	04:02:17 PM	Mr. Tavor White, representing True Health Enterprises, LLC, provided testimony to the task force. He also submitted written testimony to the task force, which can be found here: https://leg.colorado.gov/sites/default/files/images/210811_white_sales_t...

04:17:16 PM

The committee adjourned.