S_BLT_2016A 01/27/2016 01:59:00 PM Committee Summary

01:59 PM -- SB 16-053



Senator Hill introduced Senate Bill 16-053, concerning limited self-distribution by spirits manufacturers. Under current law, spirits manufacturers must have a separate wholesaler's license in order to sell their product to a retailer. The bill allows a spirits manufacturer to annually sell up to 9,000 liters of each spirit of its own manufacture to retailers without a separate wholesaler's license. Colorado's liquor laws are based on a three-tier system, separating manufacturers, wholesalers, and retailers. From 2012-2014, the Liquor Enforcement Division within the Colorado Department of Revenue (DOR) determined that the Colorado law provided that wine or spirits manufacturers did not need to obtain a separate wholesaler's license to sell their product directly to retailers. Beginning in 2014, DOR required spirits manufacturers to obtain a wholesale license to self-distribute spirits. Senator Hill responded to questions from the committee. He indicated his intent to postpone indefinitely this bill and return to the committee with a new bill.



02:07 PM -- Kara Miller, Colorado Distillers Guild, spoke about the bill.



02:10 PM -- Steve Findley, Colorado Beer Distributors Association, spoke in opposition to the bill as currently drafted and indicated his support of the proposed alternative bill. He responded to questions from the committee.



02:15 PM -- Micki Hackenberger, Wine and Spirit Wholesalers of Colorado, spoke in opposition to the bill as currently drafted.



02:17 PM -- Laura Long, Colorado Brewers Guild, spoke in opposition to the bill as currently drafted.



02:19 PM -- Patrick Maroney, Liquor Enforcement Division, responded to questions from the committee.











02:24 PM



Senator Hill made closing comments on the bill.

02:26 PM -- SB 16-050



Senator Jahn and Senator Neville introduced Senate Bill 16-050, concerning holding retailers harmless for incorrect assigned location codes. The bill from the Legislative Audit Committee releases retailers from liability for uncollected local sales tax because of a misassigned Department of Revenue location code. Specifically, a retailer is not required to remit any overdue tax or associated charges, penalties, fees, or interest arising from a misassigned location code provided that the retailer:

• obtains a sales tax license in good faith;
• provides a correct business address that conforms with the United States Postal Service database; and
• collects and remits sales taxes for the local jurisdictions represented by the retailer's assigned location code.

The bill applies only to jurisdictions for which the state collects sales taxes. Home-rule municipalities that administer their own sales taxes will continue to be able to assess unpaid taxes from businesses that receive an incorrect location code. The sponsors responded to questions from the committee. Senator Neville provided a handout to the committee (Attachment A).



160127 AttachA.pdf



02:34 PM -- Mary Marchun, Douglas County, spoke in support of the bill.



02:35 PM -- Chris Howes, Colorado Retail Council, spoke in support of the bill.



02:36 PM -- Tony Gagliardi, National Federation of Independent Businesses, spoke in support of the bill.







02:40 PM -- Christopher Harless, Office of the State Auditor, explained the purpose of a proposed amendment.



02:43 PM -- Eric Myers, Department of Revenue, responded to questions from the committee.

160127 AttachB.pdf

02:47 PM



The committee adjourned.