In this Capitol Report:
This Capitol Report is brought to you by:
Cybersecurity Luncheon featuring Military and CIA Experts
Please register to attend CACI’s 52nd Annual Meeting Luncheon featuring Cybersecurity Panel Discussion:
Moderator: Ann Beauchesne, Senior Vice President, National Security and Emergency Preparedness, U.S. Chamber of Commerce
- General Michael Hayden, USAF (Ret.), Principal, The Chertoff Group
- Michael Morell, former Deputy Director, CIA
Location: Hyatt Regency Denver at the Colorado Convention Center
Address: 650 15th St, Denver, CO 80202
Fees/Admission: Member Corporate Table: $1,500; Potential Member Corporate Table: $2,500; Member Individual Ticket: $150; Potential Member Individual Ticket: $250 Register Online
Tax Council Meeting on Potential 2018 Tax Legislation
CACI has been engaged in recent discussions with the Office of the Governor and the Colorado Department of Revenue regarding potential 2018 tax legislation. The proposed legislation would shift Colorado’s “single sales factor” apportionment methodology to a “market based sourcing” methodology. We understand the legislation will be based on the Multistate Tax Commission (MTC) model legislation being considered and adopted by many other states.
We have invited staff from those offices to present the proposal to the CACI Tax Council to allow for discussion and feedback by CACI members. Details are as follows:
CACI Tax Council Meeting:
Date: October 27, 2017
Time: 9:30 a.m.
Location: CACI conference room, 1600 Broadway,
Ste. 1000, Denver
Background of Both Tax Systems:
Single Sales Factor – Under this system, companies pay state income tax based on the sales of products “delivered” to customers in that state. This is straightforward when the products are physically delivered “widgets.” For intangible products and services, income tax is generally paid based on where the costs of performing the services are incurred.
Market Based Sourcing – This system creates a shift in methodology for intangibles and service providers. It would source sales to the State in which the benefit of the service is received and will be subsequently used by the customer. With this system, companies that incur substantial costs related to services and intangible products in Colorado will likely pay less tax in Colorado for sales to customers outside Colorado. For this reason, 26 states have adopted some version of the Multistate Tax Commission model legislation (MTC). This methodology also narrows the sales used to calculate the single sales factor for all Colorado taxpayers.
We encourage CACI members to attend this meeting on October 27th at 9:30a.m. if this legislation will impact your company or the clients you represent. Please contact Loren Furman at email@example.com or at 303-866-9642 if you should have any questions regarding this matter.
DOR Stakeholder Meeting on Taxes Collected Based on Location of a Sale
Please be advised that the CO Department of Revenue is holding a stakeholder meeting to discuss potential changes to existing rules for determining the location of a sale for sales tax purposes.
Stakeholder Meeting Details:
Date: December 5, 2017
Time: 9:00 a.m.
Location: 1313 Sherman Street, Room 220, Denver, CO 80203
A great deal of history has occurred on this issue over the years and most recently during the 2013 and 2014 legislative sessions. At that time, legislation was adopted addressing the Federal Marketplace Fairness Act and the collection of sales tax by the Colorado Department of Revenue. Within the last few days, the Department of Revenue has reached out to CACI representatives to express an interest in holding a stakeholder meeting to discuss questions raised by local jurisdictions on this matter. Specifically, addressing the collection of tax when a purchased item is delivered to the customer at the customer’s location, and whether local jurisdictions may impose tax on the sale of that item.
We would encourage CACI members to attend this stakeholder meeting on November 15th, and in the meantime review the legislation that was adopted as well as the statutes and rules adopted since that time.
House Bill 13-1295 – This bill addressed the collection of sales taxes from out-of-state retailers to meet the requirements of the federal Marketplace Fairness Act. The bill provided that DOR would be responsible for collecting and auditing sales taxes from out-of-state retailers, and distributing this revenue to the appropriate local taxing jurisdiction. The sales taxes collected would be calculated based on the location of where the order was shipped to or the billing address.
House Bill 14-1348 – This bill simply changed the effective date for the definition of “retail sale” that was adopted with the passage of House Bill 13-1295 from July 1, 2014 to until after the federal “Marketplace Fairness Act” passes.
How to Participate in Stakeholder Work Group:
You may participate in the stakeholder process as follows:
- Provide feedback about what issues the work group and the rule should address. All feedback can be sent via email to firstname.lastname@example.org November 14, 2017.
- If you are interested in being a member of the work group, please submit an application byNovember 14, 2017. If you cannot attend in person, a conference call can be arranged.
Interested parties not selected as members of the work group may still take an active role in the rulemaking process by attending the work group meeting and providing comments during the public comment period of the work group meeting or by submitting written comments to email@example.com.
Please contact Loren Furman at firstname.lastname@example.org or at 303-866-9642 if you should have any questions regarding this matter.
Federal Affairs Council Update
Please note the Federal Affairs council meeting scheduled for October 3, 2017 has been cancelled. Please stay tuned for more information on the upcoming council meeting in November.