I_TaxTask_2022A 07/13/2022 10:00:42 AM Committee Summary PUBLICSTAFF SUMMARY OF MEETINGINTERIM COMMITTEE SALES AND USE TAX SIMPLIFICATION TASK FORCE Date 07/13/2022 Attendance Bryan Archer * Paul Archer * Bockenfeld X Michelle Bush X Meghan Dollar X Leslie Edwards * Kenneth Keeley X Kipp X Don Korte X Tracy Kraft-Tharp X Josh Pens X Van Winkle X Andrew Wheeler E Ryan Woods X Bridges X Time 10:00:42 AM to 02:44:19 PM Place Old State Library This Meeting was called to order by Bridges This Report was prepared by Luisa Altmann Hearing Items Action Taken hTask Force Chair Election Chair and Vice Chair Election hTask Force Overview & Review of 2022 Sales Tax Legislation Committee Discussion Only hTask Force Member Introductory Remarks Committee Discussion Only hUpdates from the Colorado Department of Revenue Committee Discussion Only hLunch Lunch Break hGeneral Discussion of Colorado Use Taxes Committee Discussion Only hPublic Comment Committee Discussion Only hOther Items Committee Discussion Only Task Force Chair Election - Chair and Vice Chair Election 10:03:00 AM Motion Nominate Representative Kipp to serve as Task Force Chair Moved Bridges Seconded Bryan Archer Excused Paul Archer Excused Bockenfeld Michelle Bush Meghan Dollar Leslie Edwards Excused Kenneth Keeley Kipp Don Korte Tracy Kraft-Tharp Josh Pens Van Winkle Andrew Wheeler Excused Ryan Woods Bridges YES: 0 NO: 0 EXC: 4 ABS: 0 FINAL ACTION: Pass Without Objection 10:03:32 AM Senator Bridges resigned as vice chair of the task force. 10:03:59 AM Motion Nominate Senator Van Winkle to serve as Task Force Vice Chair Moved Bridges Seconded Bryan Archer Excused Paul Archer Excused Bockenfeld Michelle Bush Meghan Dollar Leslie Edwards Excused Kenneth Keeley Kipp Don Korte Tracy Kraft-Tharp Josh Pens Van Winkle Andrew Wheeler Excused Ryan Woods Bridges YES: 0 NO: 0 EXC: 4 ABS: 0 FINAL ACTION: Pass Without Objection Task Force Overview & Review of 2022 Sales Tax Legislation - Committee Discussion Only 10:05:28 AM David Hansen, Legislative Council Staff, provided an overview of the task force. The memo Mr. Hansen reviewed can be found here: https://leg.colorado.gov/sites/default/files/images/2022_sales_and_use_tax_simplification_task_force_charge_memo.pdf 10:09:29 AM Jason Gelender and Jessica Herrera, Office of Legislative Legal Services, provided an overview of sales and use tax legislation passed during the 2022 legislative session. The memo they reviewed can be found here: https://leg.colorado.gov/sites/default/files/images/summary_of_sales_and_use_tax_legislation_enacted_during_the_2022_legislative_session.pdf 10:19:26 AM Staff responded to questions from the task force regarding the scope of the task force. Task Force Member Introductory Remarks - Committee Discussion Only 10:21:12 AM Members of the task force introduced themselves and discussed priority areas of study for the interim. Updates from the Colorado Department of Revenue - Committee Discussion Only 10:30:39 AM Josh Pens and Brendon Reese, Colorado Department of Revenue, provided several updates to the task force related to the Sales and Use Tax Simplification (SUTS) system, the Senate Bill 21-260 retail delivery fee, the vendor fee, and the simplification of the state sales tax return. A copy of the presentation slides can be found here: https://leg.colorado.gov/sites/default/files/images/cdor_simplification_... 10:36:33 AM Mr. Reese responded to questions from the task force regarding updating the SUTS system to collect lodging taxes, common concerns the department has heard regarding the system, and implementation of the retail delivery fee remittance. 10:42:04 AM Mr. Pens described the Senate Bill 21-260 retail delivery fee. 10:51:29 AM Mr. Pens responded to questions from the task force regarding the retail delivery fee, the department's enforcement of several of the statutory provisions related to the fee, taxation of the fee by home rule municipalities, appropriation of the SUTS system programming costs to incorporate the retail delivery fee, and available accounting software that is able to accommodate the fee. 11:04:06 AM Mr. Pens continued the presentation with a discussion of the vendor fee. 11:13:07 AM Mr. Pens continued the presentation with a discussion of potentially simplifying the state sales tax return by moving away from site-based reporting to jurisdictional reporting. 11:40:16 AM Mr. Pens responded to questions from the task force regarding the potential simplification of the state sales tax return. Lunch - Lunch Break 11:59:51 AM The task force took a lunch break. 01:34:40 PM The task force reconvened. General Discussion of Colorado Use Taxes - Committee Discussion Only 01:35:05 PM Josh Pens, Department of Revenue, presented an overview of use taxes. 01:42:29 PM Mr. Pens responded to questions regarding use taxes. 01:48:31 PM Meghan Dollar, Colorado Municipal League (CML), presented on use taxes. A copy of the presentation slides can be found here: https://leg.colorado.gov/sites/default/files/images/cml_presentation_on_... 01:55:29 PM Ms. Dollar responded to questions from the task force. 01:57:25 PM Monica Colbert Burton, Rocky Mountain Mechanical Contractors Association and the Coalition to Simplify Colorado's Sales Tax, provided an overview of the state's use taxes. The handout provided by Ms. Burton to the task force can be found here: https://leg.colorado.gov/sites/default/files/images/simplify_fact_sheet_july2022_002.pdf 02:00:23 PM Connie Zoerink, TaxOps.com, provided an overview of use taxes. 02:10:19 PM Matthew Groves, Colorado Automobile Dealers Association, provided an overview of use taxes for motor vehicles. 02:16:49 PM Mr. Groves responded to questions from the task force. Public Comment - Committee Discussion Only 02:21:46 PM Laura Williams, representing Martin Marietta, provided testimony to the task force. A copy of her testimony is provided as Attachment A. 02:26:15 PM Brian Grall, representing the Coalition to Simplify Colorado Sales Tax, the Rocky Mountain Region Promotional Products Association (RMRPPA), and LogoMyBiz.com, provided testimony to the task force. 02:34:11 PM Monica Colbert Burton, representing the Rocky Mountain Mechanical Contractors Association, provided testimony to the task force. 02:36:49 PM John Dundon, representing the Colorado Society of Enrolled Agents, submitted testimony to the task force (Attachment B). Other Items - Committee Discussion Only 02:37:58 PM Jessica Herrera, Office of Legislative Legal Services, provided information related to the task force's scope. 02:40:27 PM Task force members discussed potential agenda items for the July 27 meeting. 1. Office of Legislative Legal Services presentation on the Wayfair vs. Lakewood lawsuit 2. Presentation from CML on issues cities have encountered when joining and interfacing with the SUTS system 3. Continuation of the potential sales tax return form simplification discussion 02:44:19 PM The committee adjourned.
