H_BUS_2020A 01/21/2020 10:21:47 AM Committee Summary

Representative Kraft-Tharp and Representative Van Winkle introduced House Bill 20-1022. The bill continues the Sales and Use Tax Simplification Task Force for five years, modifies the scope of the task force's duties, and removes the requirement that the Department of Regulatory Agencies perform a sunset review prior to the repeal of the task force.

The bill sponsors responded to questions from the committee.

Neil Pomerantz, Colorado Chamber of Commerce, testified in support of the bill.

Laura Long, Colorado Competitive Council and the Jefferson County Business Lobby, testified in support of the bill.

Dave Davia, the Colorado Association of Mechanical and Plumbing Contractors (CAMPC) and the Coalition to Simplify Colorado Sales Tax, testified in support of the bill.

The bill sponsors distributed L.001 (Attachment A).

The bill sponsors responded to questions regarding the proposed amendment.

The bill sponsors made closing remarks.

Representative Kraft-Tharp and Representative Van Winkle introduced HB 20-1023. The bill repeals the current hold harmless provisions for vendors that use the currently available state-certified electronic address databases, used for determining the jurisdiction(s) to which sales tax is owed, 90 days after the implementation of the new Geographic Information System (GIS) database.  Once the GIS database is implemented, the Department of Revenue (DOR) is required to immediately notify vendors that it is available for use.  This bill then establishes a hold harmless provision for vendors that use the state's GIS database to determine sales and use tax rates for addresses and taxing jurisdictions.  The hold harmless provision also applies to vendors that use third-party databasea, which are vertified as containing the most current information from the state GIS database.  Vendors using the GIS database are not liable for any taxes, fees, or other charges that result from errors from using the state GIS database.

The bill sponsors responded to questions from the committee.

Neil Pomerantz, Colorado Chamber of Commerce, testified in support of the bill.

Laura Long, Colorado Competitive Council and the Jefferson County Business Lobby, testified in support of the bill.

Dave Davia, Colorado Association of Mechanical and Plumbing Contractors (CAMPC) and the Coalition to Simplify Colorado Sales Tax, testified in support of the bill.

The bill sponsors distributed amendment L.001 to the committee (Attachment B).

A memo from Legislative Council Staff regarding the fiscal impact of amendment L.001 was also distributed (Attachment C).

The bill sponsors made closing remarks.

Brian Tobias, Colorado Office of Policy, Research, and Regulatory Reform within the Colorado Department of Regulatory Agencies, introduced the sunset review for the Sales and Use Tax Simplification Task Force.

A copy of the sunset report can be found here, beginning on page 12: https://drive.google.com/file/d/1o-QS1JnXT4VOp7ris-vp390DnpyTKDRq/view.

A copy of the sunset review draft bill (LLS No. 20-0527.01) was provided to the committee (Attachment D).

Mr. Tobias responded to questions from the committee.

Esther van Mourik, Office of Legislative Legal Serivces, provided information to the committee regarding the draft bill and the process.

Representative Kraft-Tharp responded to questions from the committee regarding her motion to not introduce the sunset review draft bill of the task force.