Date: 04/24/2013

Final
BILL SUMMARY for HB13-1312

HOUSE COMMITTEE ON FINANCE

Votes: View--> Action Taken:
Moved to postpone House Bill 13-1312 indefinitely.
Refer House Bill 13-1312 to the Committee of the W		PASS
FAIL



03:20 PM -- House Bill 13-1312 - Concerning the Collection of Sales Taxes on Internet Purchases

 Representative Williams, prime sponsor, distributed a packet of materials on House Bill 13-1312 (Attachment E) and explained the provisions of the bill. She began by saying that House Bill 13-1312 expands the definition of "nexus" for sales tax purposes, broadening the types of business activities that create taxable sales. Specifically, this bill expands the definition of nexus to include certain methods of delivering a taxable good or providing services through an agreement with an in-state company. In addition, the bill creates a presumption that an out-of-state retailer has substantial nexus, requires an out-of-state retailer to collect and remit sales taxes if that retailer contracts with the state, and requires legislative approval of any agreement that relieves an out-of-state retailer with substantial nexus from collecting sales taxes.

13HseFin0424AttachE.pdf13HseFin0424AttachE.pdf

The committee discussed the Congressional standard for nexus under the 1992 "Quill" case, and the precedent that House Bill 13-1312 would establish given the court rulings pertaining to online sales tax collection. After a brief committee discussion, the committee heard testimony.

The following persons testified:

03:29 PM -- Mr. Adam Chase, representing the Colorado Retail Council, responded to questions about litigation and testified in support of the bill. The committee discussed whether the bill would be challenged by the courts. The committee discussed the "Quill" decision and the requirement that there must be a physical presence of the remote seller to require the collection of sales taxes. The committee continued to discuss legal issues tied to online sales.

03:55 PM -- Mr. Chris Howes, representing the Colorado Retail Council, testified in support of the bill.

03:58 PM -- Mr. Richard Kaufman, representing shopathome.com, testified in opposition to the bill.

04:03 PM -- Ms. Luralei Martin, representing Little Feet, testified in support of the bill.

04:07 PM -- Mr. Paul Garretson, representing the Garretson Sport Center Company, testified in support of the bill.

04:08 PM -- Mr. James Walker, representing the James Walker Studio Gallery, testified in support of the bill.

04:10 PM -- Ms. Linda Hunter, representing Johannes Hunter Jewelers , testified in support of the bill.

04:13 PM -- Mr. Mizraim Cordero, representing the Colorado Competitive Council, testified in support of the bill.

04:15 PM -- Mr. Bill Mueldener, representing Hein & Associates, testified in opposition to the bill. Mr. Mueldener responded to questions about federal legislation that is tied to the constitutional issues of nexus and the collection of online sales taxes. He closed by saying that the federal Congress has the right to regulate interstate commerce and will ultimately decide the issues that fall under House Bill 13-1312.

04:27 PM -- Mr. Joe Covell, representing Lawrence Covell, testified in support of the bill.
BILL:HB13-1312
TIME: 04:29:35 PM
MOVED:Court
MOTION:Refer House Bill 13-1312 to the Committee of the Whole. The motion failed on a vote of 5-8.
SECONDED:Melton
VOTE
DelGrosso
No
Foote
Yes
Joshi
No
Kagan
No
May
No
Melton
Yes
Pabon
Yes
Priola
No
Saine
No
Swalm
No
Wilson
No
Labuda
Yes
Court
Yes
YES: 5 NO: 8 EXC: 0 ABS: 0 FINAL ACTION: FAIL


BILL:HB13-1312
TIME: 04:38:07 PM
MOVED:Swalm
MOTION:Moved to postpone House Bill 13-1312 indefinitely. The motion passed on a vote of 8-5.
SECONDED:Joshi
VOTE
DelGrosso
Yes
Foote
No
Joshi
Yes
Kagan
Yes
May
Yes
Melton
No
Pabon
No
Priola
Yes
Saine
Yes
Swalm
Yes
Wilson
Yes
Labuda
No
Court
No
Final YES: 8 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: PASS