I_TaxTask_2019A 08/21/2019 09:02:03 AM Committee Summary

Director Theresa Szczurek, Executive Director of the Governor's Office of Information Technology (OIT), along with Nancy Dierker, Director of Procurement and Vendor Services for OIT, and Scott McKimmy, OIT's IT Director for the Department of Revenue, provided the task force with an update related to the procurement process for the sales tax simplification system required under Senate Bill 19-006. Ms. Dierker described where in the process OIT currently is and what the planned next steps are.

Ms. Dierker and Director Szczurek responded to questions from the task force related to the difference between a request for a proposal and an intent to negotiate process and other aspects of the project. A copy of Ms. Dierker's notes and the anticipated timeline are provided as Attachment A.

Mr. McKimmy discussed activities related to the GIS system. Mr. McKimmy and Brendon Reese responded to questions from the task force related to the stakeholder involvement in the process. Director Szczurek offered to provide a demonstration of other GIS systems OIT has developed at the task force's next meeting, along with providing the task force with an overall project schedule. Director Szczurek and Mr. McKimmy responded to questions from the task force regarding the decision to develop the GIS system in house instead of using a vendor and other aspects of the project.

Kevin Bommer, Colorado Municipal League, provided an update regarding the standardized definitions project. A copy of his presentation can be found in Attachment B. Mr. Bommer responded to questions from the task force related to the 18 municipalities that have not adopted the standardized definitions.

Josh Pens, Department of Revenue, provided an overview of the department's guidance that was published related to marketplaces. A copy of the guidance can be found here: https://drive.google.com/file/d/1WDHMfUWN5UVMzpW7Q57899DquEJJGYeP/view.

Mr. Pens responded to questions from task force members. Task force discussion ensued related to home rule municipality implementation.

Brendon Reese, Department of Revenue, discussed current initiatives of the department.

The committee took a break.

The committee reconvened.

Lu Cordova, Executive Director of the Department of Revenue, provided an update to the task force related to the partnership structure that she presented during the previous meeting on July 22, 2019. Director Cordova responded to questions from members of the task force.

Task force discussion ensued.

Director Cordova introduced Tracy Winchester who will be working as stakeholder liaison for the department.

Representative Kraft-Tharp provided introductory remarks regarding the goal of the discussion.

Brendon Reese, Department of Revenue, presented several ideas to the task force related to how the task force can help ensure business confidence in the GIS product, discussed earlier, when it is launched.  Ideas included legislation to create a hold-harmless provision for businesses that use the state-provided GIS system, similar to the provision currently in place for businesses that use databases that are certified by the department.  Mr. Reese also discussed whether there is still a need for the department to continue certifying third-party databases once the state-owned GIS system is in operation.

Task force discussion ensued.

Mr. Reese continued by discussion a proposal to require local jurisdictions to provide updates regarding changes and maintain the accuracy of the GIS system once it is operational.  Mr. Reese noted how frequently this information would have to be updated in order to maintain its accuracy.

Task force discussion ensued regarding the burden this requirement may place on local jurisdictions and the difficulty some jurisdictions may encounter in complying with a requirement of this type.

The task force also discussed the necessity of certifying third-party databases and the other uses of these databases.

Ryan Woods, on behalf of the Colorado Chamber of Commerce, discussed ideas for the task force to consider in future years, including: streamlined reporting to the Department of Revenue, a review of vehicle registration taxation, increasing the filing thresold amount, further aligning the Streamlined Sales Tax Project, and creating an isolated or occasional sale exemption.  A copy of the handout is provided as Attachment C.

The task force discussed the suggestions.

Alan Smith, Sales Tax Colorado, provided testimony to the task force.

Task force discussion ensued regarding the continuation of the task force and the task force meetings scheduled for September 11 and October 24.