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I_TaxTask_2021A 07/13/2021 02:02:35 PM Committee Summary

PUBLIC
STAFF SUMMARY OF MEETING
INTERIM COMMITTEE  SALES AND USE TAX SIMPLIFICATION TASK FORCE
Date 07/13/2021
Attendance
Bryan Archer X
Paul Archer X
Bridges X
Michelle Bush X
Don Korte X
Meghan Dollar X
Kipp X
Tracy Kraft-Tharp E
Curt Osborne X
Josh Pens X
Heather Pezzella X
Van Winkle X
Andrew Wheeler E
Ryan Woods X
Woodward *
Time 02:02:35 PM to 04:01:00 PM
Place Old State Library
This Meeting was called to order by Van Winkle
This Report was prepared by Luisa Altmann
Hearing Items Action Taken
Task Force Member and Staff Introductions Committee Discussion Only
Election of Chair and Vice-Chair Election of Sen. Bridges as Chair and Rep. Van Winkle as Vice-Chair
Overview of the Task Force Committee Discussion Only
Department of Revenue Updates Committee Discussion Only
Selection of Future Meeting Dates Committee Discussion Only
Public Comment Committee Discussion Only

Task Force Member and Staff Introductions - Committee Discussion Only


02:04:20 PM  
Matt Bishop, Legislative
Council Staff, made introductory remarks to the task force. David Hansen
and Luisa Altmann, Legislative Council Staff and members of the task force
staff, introduced themselves.

Members of the task force introduced themselves.  The following individuals
have been appointed to serve on the task force:
  • Representative Cathy
    Kipp, appointed by the Speaker of the House of Representatives;
  • Representative Kevin
    Van Winkle, appointed by the Minority Leader of the House of Representatives;
  • Senator Jeff Bridges,
    appointed by the President of the Senate;
  • Senator Rob Woodward,
    appointed by the Minority Leader of the Senate;
  • Josh Pens, Director
    of Tax Policy Analysis, Colorado Department of Revenue;
  • Meghan Dollar, Legislative
    Advocacy Manager, Colorado Municipal League (CML);
  • Tracy Kraft-Tharp,
    Jefferson County Commissioner, representing Colorado Counties, Inc.;
  • Paul Archer, CEO/Owner,
    Automated Business Products, LLC, appointed by the Governor as a member
    of a statewide association of small businesses that is addressing the simplification
    of sales and use tax collection;
  • Ryan Woods, Tax Consultant,
    Xcel Energy, appointed by the Governor as a member of the statewide chamber
    of commerce;
  • Michelle Bush, Partner,
    Silverstein & Pomerantz LLP, appointed by the Governor as a state and
    local sales tax law practitioner;
  • Andrew Wheeler, Tax
    Senior, Martillaro Raub & Associates, appointed by the Governor as
    someone with state and local sales and use tax accounting experience;
  • Heather Pezzella, Revenue
    Services Administrator, Town of Breckenridge, appointed by CML, representing
    the small population category;
  • Curt Osborne, Sales
    Tax Manager, City of Lafayette, appointed by CML, representing the medium
    population category;
  • Bryan Archer, Director
    of Finance, City of Arvada, appointed by CML, representing the large population
    category; and
  • Don Korte, Director
    of Tax Compliance, City and County of Denver, appointed by CML, representing
    the largest population category.


  • Election of Chair and Vice-Chair - Election of Sen. Bridges as Chair and Rep. Van Winkle as Vice-Chair


    02:10:45 PM  
    The task force elected
    a chair and vice-chair.


    02:11:52 PM
    Motion Nominate Senator Bridges to serve as Chair of the task force.
    Moved Woodward
    Seconded Kipp
    Bryan Archer
    Paul Archer
    Bridges
    Michelle Bush
    Don Korte
    Meghan Dollar
    Kipp
    Tracy Kraft-Tharp Excused
    Curt Osborne
    Josh Pens
    Heather Pezzella
    Van Winkle
    Andrew Wheeler Excused
    Ryan Woods
    Woodward
    YES: 0   NO: 0   EXC: 2   ABS:  0   FINAL ACTION:  Pass Without Objection


    02:12:33 PM
    Motion Nominate Representative Van Winkle to serve as vice-chair of the task force.
    Moved Kipp
    Seconded Woodward
    Bryan Archer
    Paul Archer
    Bridges
    Michelle Bush
    Don Korte
    Meghan Dollar
    Kipp
    Tracy Kraft-Tharp Excused
    Curt Osborne
    Josh Pens
    Heather Pezzella
    Van Winkle
    Andrew Wheeler Excused
    Ryan Woods
    Woodward
    YES: 0   NO: 0   EXC: 2   ABS:  0   FINAL ACTION:  Pass Without Objection
    02:12:34 PM  
    Senator Bridges was elected
    chair of the task force and Representative Van Winkle was elected vice-chair
    of the task force.



    Overview of the Task Force - Committee Discussion Only


    02:13:47 PM  
    Jason Gelander, Office
    of Legislative Legal Services, provided an overview of the history of the
    task force since its inception in 2017.



    Department of Revenue Updates - Committee Discussion Only


    02:25:01 PM  
    Josh Pens, Colorado Department
    of Revenue, provided an update on the Sales and Use Tax Simplification
    (SUTS) System. A copy of the presentation slides can be found here:
    http://leg.colorado.gov/sites/default/files/images/sales_use_task_force_suts_sb_282_presentation_7-2021.pdf

    Mr. Pens responded
    to questions from task force members regarding the status of cities that
    are not on the SUTS system yet, what further improvements are being made
    to the system, why there are so many businesses that have registered but
    not yet used the system, and what the department is doing to advertise
    the availability of the system to the business community.
    03:02:02 PM  
    Executive Director Mark
    Ferrandino, Colorado Department of Revenue, Mr. Pens, and members of the
    task force discussed business licensing requirements in home-rule cities.
    03:03:46 PM  
    Task force members continued
    with a discussion of the goals of the task force.

    Mr. Paul Archer outlined the following goals that he hopes the task force
    addresses:  1.) business licensing requirements; 2.) remittance simplification;
    3.) a more reliable geographic information system (GIS); 4.) common definitions;
    and 5.) audits.  Mr. Archer also discussed his desire to see an increase
    in the usage and capabilities of the SUTS system.
    03:07:44 PM  
    Meghan Dollar discussed
    the work of CML to work with cities on the issues discussed previously.
    03:08:32 PM  
    Senator Woodward discussed
    his goals to set the next metric that the SUTS system should accomplish
    (e.g., potentially setting a timeframe to have X number of cities sign
    onto the SUTS system) and to set aggressive goals on business participation
    in the SUTS system.



    Director Ferrandino discussed DOR's wildly important goals that relate
    to the SUTS system, as outlined in the department's FY 2021-22 Performance
    Plan, which can be found here:
    https://drive.google.com/file/d/1nAYQWVgqBjZL3d7b6EbEnF5C4vK29E10/view.
    03:11:11 PM  
    Mr. Pens and Director
    Ferrandino responded to questions from task force members related to the
    future plans for Revenue Online.



    Mr. Ryan Woods discussed the issue of the cap placed by the legislature
    on vendor fees, which potentially makes it difficult for large businesses
    to fund the API improvements and other integrations that are needed to
    connect their current systems with the SUTS system.
    03:17:02 PM  
    Mr. Pens continued his
    presentation with a discussion of the impact of Senate Bill 21-282, Continue
    Small Business Destination Sourcing Exemption.



    Mr. Pens responded to questions from the task force members regarding the
    bill.



    Mr. Woods discussed his desire to find alternate ways to apportion the
    tourism district taxes and tobacco taxes on the state's return and the
    issue with DOR's use of site-based reporting.



    Selection of Future Meeting Dates - Committee Discussion Only


    03:33:48 PM  
    Each member of the task
    force discussed their goals for the future work of the task force.



    Mr. Paul Archer asked for regular updates on participation in the SUTS
    system by cities and businesses.



    Senator Woodward described his desire to help increase compliance with
    the state tax code by the business community and to reduce the cost of
    compliance.



    Representative Kipp outlined her goal to make it easier for businesses
    to operate and to treat all buisnesses equally.



    Mr. Don Korte described Denver's move to eliminate business license fees
    and its work to encourage other cities to do the same.



    Mr. Woods discussed his goals of continuing to improve the SUTS system
    and GIS database, to work on restructuring the state's return, and to find
    macro ways to simplify taxes in the state, including potentially looking
    at ways that the state can comform with home rule cities.



    Ms. Michelle Bush discussed her goal of working to increase business compliance.




    Mr. Curt Osborne discussed of his goal of helping to work with cities to
    help simplify the process.



    Mr. Pens described his goal of promoting voluntary compliance through simplification.




    Ms. Meghan Dollar discussed her goal of working to continue to improve
    the SUTS system for all stakeholders.



    Mr. Bryan Archer described the work of many jurisdictions to simplify business
    forms and the work of Arvada to remove fees for business licenses.



    Ms. Heather Pezzella discussed her goals of working to further improve
    the SUTS system and to help increase compliance.



    Senator Bridges discussed his goal of working to address business licensing
    requirements.
    03:50:01 PM  
    The task force selected
    the following future meeting dates: Wednesday, August 11, from 10:00am
    - 4:00pm, and Friday, September 10, from 10:00am - 4:00pm.



    Public Comment - Committee Discussion Only


    04:00:33 PM  
    There was no public comment.


    04:01:00 PM   The committee adjourned.






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