Finance Committee Agenda and Packet 2017 03 24

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1 WHEREAS, The use of different definitions including varying tax 2 guidance regarding the different definitions among all taxing jurisdictions 3 creates confusion for taxpayers and needless audit exposure for 4 businesses; and 5 WHEREAS, Standardization of definitions for the sales and use 6 tax base was recommended in the report prepared by the department of 7 revenue titled "Uniform Sales and Use Tax Base Throughout the State" 8 dated December 15, 2013; and 9 WHEREAS, Standardization of definitions is something that ought 10 to be accomplished without causing a major revenue loss to taxing 11 jurisdictions or a revenue increase that necessitates voter approval as 12 required in section 20 of article X of the state constitution; and 13 WHEREAS, In 1992, Colorado's home rule municipalities that 14 locally collect their sales and use tax adopted a package of standardized 15 definitions that the municipalities themselves had developed, under the 16 aegis of the Colorado Municipal League, and in cooperation with the 17 business community; and 18 WHEREAS, The 1992 effort did not include a mechanism to 19 maintain standardization of definitions over time, nor did that effort 20 anticipate the practical effect of varying tax guidance among taxing 21 jurisdictions on continued standardization of definitions; now, therefore, 22 Be It Resolved by the Senate of the Sixty-ninth General Assembly 23 of the State of Colorado, the House of Representatives concurring herein: 24 (1) The standardization of definitions used by Colorado taxing 25 jurisdictions to define their sales and use tax base is in the public interest 26 and serves to improve Colorado's business environment; 27 (2) The General Assembly urges Colorado's home rule 28 municipalities that locally collect their sales taxes to work together once 29 again, through the Colorado Municipal League, on a package of uniform 30 definitions recommended for adoption by all home rule, locally collecting 31 municipalities; 32 (3) The General Assembly further urges that such definitions be 33 developed so that they may be utilized by Colorado municipalities 34 without either significant adverse fiscal impact or voter approval as -2- 038 128