I_TaxTask_2022A 08/10/2022 10:03:11 AM Committee Summary PUBLICSTAFF SUMMARY OF MEETINGINTERIM 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 hUpdates from the Department of Revenue Committee Discussion Only hBuilding Permit and Construction Materials Use Tax Updates Committee Discussion Only hPublic Comment Committee Discussion Only hBill 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.
