Date: 04/22/2009

Final
BILL SUMMARY for SB09-121

HOUSE COMMITTEE ON FINANCE

Votes: View--> Action Taken:
Refer Senate Bill 09-121 to the Committee on ApproPASS



07:18 PM -- Senate Bill 09-121 - Concerning Sales and Use Taxes on Meals Provided to Employees

Representative Marostica, prime sponsor, explained the provisions of the bill and distributed a packet of materials on the legislation from the Colorado Restaurant Association (Attachment G). He began by explaining that the bill eliminates the requirement that free or reduced-price meals provided to employees of restaurants be considered part of their wages in order for the meals to be exempt from sales and use taxes. Current law requires free or reduced-price meals provided to employees of restaurants be subject to sales and use tax unless it is considered part of the employees' wages. Restaurants must record the meals as part of their employees' compensation in their wage documentation in order for the exemption to apply. If the meals are not part of their wages, sales or use tax is due on the value of the meals. After a brief committee discussion, testimony was heard.

09HouseFin0422AttachG.pdf

The following persons testified:

07:25 PM -- Mr. Phillip Horowitz, Department of Revenue, discussed the history of the sales and use tax exemption on employee meals. He continued by discussing the history of audits of taxpayers who are exempted from paying sales taxes on employee meals. Mr. Horowitz closed by discussing the implementation of the statute as it applies to the exemption. Under the statute only if the meals are part of wages for income, are they exempt from state sales tax.


07:39 PM
BILL:SB09-121
TIME: 07:39:19 PM
MOVED:Lambert
MOTION:Refer Senate Bill 09-121 to the Committee on Appropriations. The motion passed on a 11-0 vote.
SECONDED:Summers
VOTE
Apuan
Yes
Benefield
Yes
Gerou
Yes
Kefalas
Yes
Kerr A.
Yes
Lambert
Yes
Roberts
Yes
Summers
Yes
Swalm
Yes
Frangas
Yes
Judd
Yes
Final YES: 11 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS