Legislative Update – Software Tax
Thursday, January 28, 2010
Posted by: Nikki Mill
January 28 Update:
a 12-hour wait and compelling testimony from key CSIA Board members,
volunteers and leaders in our community, HB 1192 advanced early
Thursday morning by a very narrow margin of 6/5 last night and is
scheduled to be heard next before the House on Friday morning.
appreciate your support and because of your tweets, posts, comments and
phone calls, we’ve been able to draw great attention to our effort, and
every communications you do, makes a significant difference. When you
have a moment, please share a thank you with the industry leaders who
provided testimony at yesterday’s hearing. (Listed below.)
This is the most serious issue we have faced in more than a decade in Colorado technology history, and so we still need everyone to speak up, tweet, post, email or otherwise raise the concern about this bill.
Because it will affect every company in every industry, this not only
impacts our critical software and IT services companies, but every
technology user in our state.
In fact, did you know that under the new tax regulation, the following could happen:
have a growing battle ahead of us and it’s important that we continue
to tell everyone and anyone the devastating impacts this bill will have
on our industry and our state.
centers will have to collect tax from all of its customers that had
"users” with access to the SaaS system located in Colorado.
- Charges to customize "base software” could be taxable if not separately stated from the overall purchase of software.
software would include all prewritten updates/upgrades. (If these
charges are not separately stated from a maintenance fee, the full
charge for maintenance and update becomes taxable.
- And many other scenarios – none of which would help our industry or our customers in Colorado.
time to act is NOW. We need supporters like you to contact your House
representative by phone TODAY and explain to them why this new tax will
be devastating for Colorado’s economy. (A few key points and House representatives’ contact info are listed below).
Additionally, please help us make this Denver Post article
the most commented of the day to increase awareness and pressure on our
representatives to look more closely at the issue. Please comment!
KEY DRIVE HOME POINTS
you to the CSIA members – and others from Qwest, PriceWaterhouseCoopers
and the Northern Alliance - who provided excellent testimony and
1192 is a brand new tax on which Colorado taxpayers will not have an
opportunity to vote – a potential violation of our state Constitution
- This new software tax is being lumped
together with twelve other exemption/credit reversals in an effort by
the governor’s office to rush this through legislation. The new
software tax is a separate and highly problematic new tax that will
have a devastating impact to Colorado’s economy because it affects
every company in every industry.
- Of the 13 tax exemptions
rushed through the House Finance Committee last night, Representative
Gerou called HB 1192 the most damaging, in terms of the impact it will
cause to jobs.
- This bill is vague and poorly written – the trickle-down effect of this bill could be endless, and the loss in revenue.
- HB 1192 will cost Colorado jobs and give us the reputation of being unfriendly to business.
more than 175,000 professionals in this industry earn an average of
$88,000 per year - more than twice the median salary of all Colorado
professionals in the state. Within that industry, employers are
announcing plans to cut jobs or leave the state if this bill is passed.
- This bill will raise taxes on ALL businesses in Colorado who use technology.
veterinarian, your favorite restaurant, your bakery, your hair salon,
your telephone company, your cable company, your brewery, etc. This
could stifle new job growth and cause existing/new jobs to go elsewhere.
the Revenue Department is estimating $15 million revenue from this tax
in the next year, we expect the revenue loss from the technology
industry to far surpass that amount.
Stacey Alexander, Programs Chair, Society for Information Management
Peter Cheesbrough, Executive VP and CFO, CIBER, Inc.
Barry Clark, President, WestFAX
Anthony Franco, President, EffectiveUI
Carl Fitch,CEO, Statera
Marion Jenkins, CEO, QSE
Ida Lau, President, Veripoint
Tom Melaragno, President and CEO, Compri Consulting Inc.
Micki Nelson, CIO, MWH
Kirby Slunaker, CIO, Pendum
George Tyler, Partner & Vice President, CxO To Go
Rep. Dennis Apuan (303)866-3069 firstname.lastname@example.org
Rep. Debbie Benefield 303.866.2950 email@example.com
Rep. Terrance Carroll 303-866-2346 firstname.lastname@example.org
Rep. Edward Casso (303)866-2964
Rep. Lois Court (303)866-2967 email@example.com
Rep. Kathleen Curry 303.866.2945 firstname.lastname@example.org
Rep. Mark Ferrandino 303.866.2911 email@example.com
Rep. Randolph Fischer 303.866.2917 firstname.lastname@example.org
Rep. Jerry Frangas 303.866.2954 email@example.com
Rep. Sara Gagliardi (303)866-2962 firstname.lastname@example.org
Rep. Dickey Hullinghorst (303)866-2915 email@example.com
Rep. Joel Judd 303.866.2925 firstname.lastname@example.org
Rep. Daniel Kagan 303.866.4569 email@example.com
Rep. John Kefalas 303.866.2921 firstname.lastname@example.org
Rep. Andrew Kerr (303)866-2923 email@example.com
Rep. Jeanne Labuda 303.866.2966 firstname.lastname@example.org
Rep. Claire Levy (303)866-2578 email@example.com
Rep. Beth McCann (303)866-2959 firstname.lastname@example.org
Rep. Liane McFadyen (303)866-2905 email@example.com
Rep. Wesley McKinley 303-866-2398 firstname.lastname@example.org
Rep. Michael Merrifield (303)866-2932 email@example.com
Rep. Karen Middleton (303)-866-3911 firstname.lastname@example.org
Rep. Joe Miklosi (303)866-2910 email@example.com
Rep. Sal Pace 303.866.2968 firstname.lastname@example.org
Rep. Cherylin Peniston (303)866-2843 email@example.com
Rep. Jack Pommer 303.866.2780 firstname.lastname@example.org
Rep. Dianne Primavera 303-866-4667 email@example.com
Rep. Joseph Rice (303)866-2953 firstname.lastname@example.org
Rep. Jim Riesberg 303.866.2929 email@example.com
Rep. Susan Ryden 303-866-2942 firstname.lastname@example.org
Rep. Christine Scanlan (303)866-2952 email@example.com
Rep. Sue Schafer 303-866-5522 firstname.lastname@example.org
Rep. Judith Solano 303-866-2918 email@example.com