Skip to main content
Colorado General AssemblyToggle Main Menu
Agency NameToggle Agency Menu

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
Attendance
Bryan Archer E
Paul Archer E
Michelle Bush X
Don Korte X
Meghan Dollar X
Kipp X
Tracy Kraft-Tharp X
Curt Osborne X
Josh Pens X
Heather Pezzella E
Andrew Wheeler E
Ryan Woods X
Woodward X
Van Winkle X
Bridges X
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
Sales and Use Taxes for Motor Vehicle Purchases Committee Discussion Only
Discussion about Survey to Municipalities on Business Licensing Committee Discussion Only
Other Committee Discussion Committee Discussion Only
Lunch Committee Discussion Only
Sales and Use Tax Simplification System Demo and Discussion Committee Discussion Only
Public 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.



Discussion about Survey to Municipalities on Business Licensing - Committee Discussion Only


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.



Other Committee Discussion - Committee Discussion Only


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



Lunch - Committee Discussion Only


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



Sales and Use Tax Simplification System Demo and Discussion - Committee Discussion Only


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.



Public Testimony - Committee Discussion Only


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.






COVID-19 Resources
NORTH ENTRANCE IS CURRENTLY CLOSED.  TO ENTER THE CAPITOL, USE THE SOUTH ENTRANCE, UNDER THE STAIRS, AT 14th AVENUE AND SHERMAN STREET.