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I_TaxTask_2022A 08/10/2022 10:03:11 AM Committee Summary

PUBLIC
STAFF SUMMARY OF MEETING
INTERIM COMMITTEE  SALES AND USE TAX SIMPLIFICATION TASK FORCE
Date 08/10/2022
Attendance
Bryan Archer X
Paul Archer X
Bockenfeld X
Bridges E
Michelle Bush X
Meghan Dollar X
Leslie Edwards *
Kenneth Keeley E
Don Korte X
Tracy Kraft-Tharp X
Esther Van Mourik X
Andrew Wheeler E
Ryan Woods X
Van Winkle *
Kipp X
Time 10:03:11 AM to 12:28:55 PM
Place Old State Library
This Meeting was called to order by Kipp
This Report was prepared by Luisa Altmann
Hearing Items Action Taken
Updates from the Department of Revenue Committee Discussion Only
Building Permit and Construction Materials Use Tax Updates Committee Discussion Only
Public Comment Committee Discussion Only
Bill Draft Requests Draft five task force bills

Updates from the Department of Revenue - Committee Discussion Only




10:04:38 AM

Eric Myers and Esther Van Mourik, Colorado Department of Revenue, provided several updates to the task force.  A copy of the presentation be found here: https://leg.colorado.gov/sites/default/files/images/cdor_simplification_... Mr. Myers began the presentation with an overview of the planned upgrades to the Sales and Use Tax Simplification (SUTS) system.



10:19:00 AM
Mr. Myers responded to questions from members of the task force about the SUTS system.



10:38:53 AM
Ms. Van Mourik continued the presentation with an update related to House Bill 22-1039, Exemption Form Simplification.



10:40:31 AM
Ms. Van Mourik continued the presentation with an update on the department's proposal to simplify the state's sales tax return.



10:46:30 AM
Ms. Van Mourik and Mr. Myers responded to questions from members of the task force.



Building Permit and Construction Materials Use Tax Updates - Committee Discussion Only


10:58:33 AM  

Laura Williams, Martin Marietta, presented on how other states handle use taxes for construction materials.  A copy of the presentation can be found here: https://leg.colorado.gov/sites/default/files/images/use_tax_follow_up_fi...

11:04:48 AM  

Meghan Dollar, Colorado Municipal League, provided an update on feedback from municipalities regarding use taxes for construction materials.

11:10:23 AM  
Ms. Williams and Ms. Dollar responded to questions from members of the task force.
11:18:50 AM  

Ms. Dollar continued with a discussion of municipalities' taxation of the retail delivery fee.  Ms. Dollar responded to questions from members of the task force related to the adoption of standardized definitions.  Task force discussion ensued.



Public Comment - Committee Discussion Only


11:22:47 AM  
Rebecca Tanner, Colorado
Structures, Inc., provided testimony to the task force.
11:36:08 AM  
Jeff Hansen, City of Golden, provided testimony to the task force.
11:39:28 AM  
Ms. Tanner and Mr. Hansen responded to questions from members of the task force.
11:43:15 AM  

John Dundon, Colorado Society of Enrolled Agents, provided testimony to the task force, which can be found here: https://leg.colorado.gov/sites/default/files/images/august_10_2022_publi...



Bill Draft Requests - Draft five task force bills


11:44:15 AM  

Members of the task force discussed proposed bill drafts.  Only legislative members of the task force are allowed to request bill drafts and vote on proposed legislation.

11:44:44 AM  
Topic #1: Simplifying
the implementation of the retail delivery fee



Task force discussion ensued related to issues on this topic, including
requiring the inclusion of the fee as a separate line on customer invoices,
taxation of the fee, Department of Revenue considerations, and others.



Point of contact: Senator Van Winkle



11:56:06 AM
Motion Draft a task force bill related to simplifying implementation of the retail delivery fee
Moved Van Winkle
Seconded Bockenfeld
Bryan Archer Excused
Paul Archer Excused
Bockenfeld
Bridges Excused
Michelle Bush Excused
Meghan Dollar Excused
Leslie Edwards Excused
Kenneth Keeley Excused
Don Korte Excused
Tracy Kraft-Tharp Excused
Esther Van Mourik Excused
Andrew Wheeler Excused
Ryan Woods Excused
Van Winkle
Kipp
YES: 0   NO: 0   EXC: 12   ABS:  0   FINAL ACTION:  Pass Without Objection
11:56:07 AM  
Topic #2: Collection
of use taxes on construction materials and building permits



Task force discussion ensued related to the topic, including whether to
address the issue legislatively or administratively through the Colorado
Municipal League process, and using a resolution to address the issue.



Point of contact: Senator Van Winkle


12:02:51 PM
Motion Draft a task force resolution to address the construction materials use tax issue
Moved Van Winkle
Seconded Bockenfeld
Bryan Archer Excused
Paul Archer Excused
Bockenfeld
Bridges Excused
Michelle Bush Excused
Meghan Dollar Excused
Leslie Edwards Excused
Kenneth Keeley Excused
Don Korte Excused
Tracy Kraft-Tharp Excused
Esther Van Mourik Excused
Andrew Wheeler Excused
Ryan Woods Excused
Van Winkle
Kipp
YES: 0   NO: 0   EXC: 12   ABS:  0   FINAL ACTION:  Pass Without Objection
12:02:53 PM  
Topic #3: Simplification
of the state's sales tax return



Task force discussion ensued on the topic, including department funding
needs for the effort.



Point of contact: Representative Kipp


12:06:28 PM
Motion Draft a task force bill on the simplification of the state's sales tax return
Moved Van Winkle
Seconded Bockenfeld
Bryan Archer Excused
Paul Archer Excused
Bockenfeld
Bridges Excused
Michelle Bush Excused
Meghan Dollar Excused
Leslie Edwards Excused
Kenneth Keeley Excused
Don Korte Excused
Tracy Kraft-Tharp Excused
Esther Van Mourik Excused
Andrew Wheeler Excused
Ryan Woods Excused
Van Winkle
Kipp
YES: 0   NO: 0   EXC: 12   ABS:  0   FINAL ACTION:  Pass Without Objection
12:06:29 PM  
Topic #4: Functionality
of the SUTS system



Task force discussion ensued on the topic, including the inclusion of lodging
tax, the ability to bulk upload and download data, marketing of the system
by the Department of Revenue, the creation of a customer advisory committee
as a way for businesses and municipalities to give feedback on the system,
making address data publicly available, additional funding required for
future changes and including a reference to the unspent amount from the
original appropriation for the system, and inclusion of priorities and
timelines.



The task force decided to draft two bills on this topic: one related to
general functionalities and one related specifically to the addition of
lodging tax.



Point of contact: Representative Kipp



12:22:55 PM
Motion Draft a task force bill related to functionality of the SUTS system
Moved Van Winkle
Seconded Bockenfeld
Bryan Archer Excused
Paul Archer Excused
Bockenfeld
Bridges Excused
Michelle Bush Excused
Meghan Dollar Excused
Leslie Edwards Excused
Kenneth Keeley Excused
Don Korte Excused
Tracy Kraft-Tharp Excused
Esther Van Mourik Excused
Andrew Wheeler Excused
Ryan Woods Excused
Van Winkle
Kipp
YES: 0   NO: 0   EXC: 12   ABS:  0   FINAL ACTION:  Pass Without Objection


12:23:38 PM
Motion Draft a task force bill related to enhancements to the SUTS system for inclusion of the lodging tax
Moved Van Winkle
Seconded Bockenfeld
Bryan Archer Excused
Paul Archer Excused
Bockenfeld
Bridges Excused
Michelle Bush Excused
Meghan Dollar Excused
Leslie Edwards Excused
Kenneth Keeley Excused
Don Korte Excused
Tracy Kraft-Tharp Excused
Esther Van Mourik Excused
Andrew Wheeler Excused
Ryan Woods Excused
Van Winkle
Kipp
YES: 0   NO: 0   EXC: 12   ABS:  0   FINAL ACTION:  Pass Without Objection
12:24:52 PM  

The task force requested a presentation related to the inclusion of lodging tax in the SUTS system at its next meeting.


12:28:55 PM   The committee adjourned.






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