2014
       
       
       
       
       
       
       
       
       
       
       SENATE JOINT RESOLUTION 14-038
       
       
       BY SENATOR(S) Steadman and Harvey, Newell, Ulibarri;
       also REPRESENTATIVE(S) Kagan and Conti, Becker, Court, Fields,
       Gardner, Hamner, Holbert, Hullinghorst, Joshi, Labuda, May, McCann,
       Melton, Pettersen, Primavera, Ryden, Schafer, Singer, Tyler, Williams,
       Wright, Young, Ferrandino.
       
       
          CONCERNING UNIFORM SALES AND USE TAX DEFINITIONS
       FOR HOME RULE MUNICIPALITIES THAT LOCALLY COLLECT
       THEIR SALES AND USE TAXES. 
       
       
          WHEREAS, Colorado's system of local collection of sales and use tax
       by home rule municipalities can be cumbersome and difficult for
       multijurisdictional merchants; and
       
          WHEREAS, The state, local governments, and businesses alike agree
       that standardization of definitions of the goods or services subject to sales
       or use tax and the goods or services exempted from sales or use tax (the
       "sales and use tax base") would improve Colorado's business
       environment; and
       
          WHEREAS, The use of different definitions including varying tax
       guidance regarding the different definitions among all taxing jurisdictions
       creates confusion for taxpayers and needless audit exposure for
       businesses; and
       
          WHEREAS, Standardization of definitions for the sales and use tax
       base was recommended in the report prepared by the department of
       revenue titled "Uniform Sales and Use Tax Base Throughout the State"
       dated December 15, 2013; and
       
          WHEREAS, Standardization of definitions is something that ought to
       be accomplished without causing a major revenue loss to taxing
       jurisdictions or a revenue increase that necessitates voter approval as
       required in section 20 of article X of the state constitution; and
       
          WHEREAS, In 1992, Colorado's home rule municipalities that locally
       collect their sales and use tax adopted a package of standardized
       definitions that the municipalities themselves had developed, under the
       aegis of the Colorado Municipal League, and in cooperation with the
       business community; and
       
          WHEREAS, The 1992 effort did not include a mechanism to maintain
       standardization of definitions over time, nor did that effort anticipate the
       practical effect of varying tax guidance among taxing jurisdictions on
       continued standardization of definitions; now, therefore,
       
          Be It Resolved by the Senate of the Sixty-ninth General Assembly of
       the State of Colorado, the House of Representatives concurring herein:
       
          (1)  The standardization of definitions used by Colorado taxing
       jurisdictions to define their sales and use tax base is in the public interest
       and serves to improve Colorado's business environment;
       
          (2)  The General Assembly urges Colorado's home rule municipalities
       that locally collect their sales taxes to work together once again, through
       the Colorado Municipal League, on a package of uniform definitions
       recommended for adoption by all home rule, locally collecting
       municipalities;
       
          (3)  The General Assembly further urges that such definitions be
       developed so that they may be utilized by Colorado municipalities
       without either significant adverse fiscal impact or voter approval as
       required in section 20 of article X of the state constitution;
       
          (4)  The General Assembly also requests the municipalities to develop
       among themselves a mechanism for maintaining standardization of the
       uniform definitions over time;
       
          (5)  The General Assembly further requests the municipalities to
       develop among themselves a coordinated system for issuance of
       non-judicial guidance regarding the scope or interpretation of such
       definitions, in order to avoid disparate local tax guidance from interfering
       with uniform application of tax definitions;
       
          (6)  The General Assembly further requests that the municipalities
       consider adopting definitions existing in the state's sales and use tax
       statutes, including interpretations of those definitions found in rules
       promulgated by the Department of Revenue, where such state and
       municipality uniformity may be achieved consistent with the objective of
       revenue neutrality;
       
          (7)  The General Assembly further requests that these important
       undertakings include opportunities for input and consultation with the
       business community, insofar as retail business is government's partner in
       collecting this critical tax; and
       
          (8)  The General Assembly urges home rule municipalities that locally
       collect their sales taxes to begin adopting and utilizing a system of
       standardized definitions and guidance by August 2016.
       
                    Be It Further Resolved, That copies of this Joint Resolution be sent to
       the Colorado Municipal League; the Department of Revenue; the
       Colorado Association of Commerce and Industry; and the Colorado Retail
       Council.
       
       
       
       
       
       ____________________________  ____________________________
       Morgan Carroll                       Mark Ferrandino
       PRESIDENT OF                    SPEAKER OF THE HOUSE
       THE SENATE                        OF REPRESENTATIVES
       
       
       
       
       
       
       ____________________________  ____________________________
       Cindi Markwell                        Marilyn Eddins
       SECRETARY OF                CHIEF CLERK OF THE HOUSE
       THE SENATE                        OF REPRESENTATIVES