October 2, 2012

TITLE SPONSOR OF THE
2012 CHARITY PREVIEW PARTY

IN THIS ISSUE

a DEALER NEWS & INFORMATION

Auto Industry News at a Glance

 

LEGISLATIVE UPDATES

Service Advisors Overtime Exemption Extended Through March

 

REGULATORY & LEGAL UPDATES

State Tax Audit Hits Dealership with Major Assessment on Loaners

 

UPCOMING SEMINARS

Title Processing Training: Save-the-Date

KPA Weekly Webinar

Upcoming Seminars


CALENDAR OF EVENTS

Luncheon for Business Leaders Next Week: Empowering the Job Creators

CADA Regional Mettings 201

NADA Convention & Expo 2013

Upcoming Events


DEALER MILESTONES,
HIGHLIGHTS & TRANSITIONS

Share Your Accomplishmens

 

THE AFTERFACT

All the News That's Fit to Email!


ARCHIVES

CLICK HERE for Open Road
e-newsletter archives.

CLICK HERE for an Index of Regulatory
& Legal Articles
from the Open
Road e-newsletter.

CLICK HERE for Bulletin archives.

CLICK HERE for Colorado Auto
Outlook
archives.

CLICK HERE for Denver Auto
Outlook
archives.


ONLINE REGISTRATION

CLICK HERE to register online
for various CADA seminars & events.


MEMBERSHIP RESOURCES

CLICK HERE for details on the
Speaker and Educational
Resources
.

CLICK HERE for a list of current
Endorsed Vendors/Programs
.

CLICK HERE for a list of current
Allied Members
.

CLICK HERE for an order form for
CADA forms
.

CLICK HERE for information on all member services.



www.nada.org


www.aiada.org

CLICK HERE for NADA
Regulatory Affairs information
.


STATE GOVERNMENT RESOURCES

CLICK HERE for the Auto Industry
Division
of the Colorado Dept.
of Revenue.

CLICK HERE for the Title and
Registration section
of the
Colorado Dept. of Revenue,
Motor Vehicles Division.

CLICK HERE for the Colorado
Department of Labor &
Employment
website.




Visit us at www.coloradodealers.org.


CADA Hours of Operation
Monday to Thursday, 7 a.m. to 5 p.m.
Friday, 7 a.m. to 4 p.m.

open_sign


CADA STAFF

CLICK HERE for a CADA staff listing


If you have questions
or suggestions
regarding this
e-newsletter, please
contact Marsha Temple at
marsha.temple@coloradodealers.org

CLICK HERE or scroll to the bottom
of this page if you want to be
added or removed from our list.


Need Acrobat Reader
to view linked
documents?
CLICK HERE for a FREE
download from Adobe.


ENDORSED VENDOR/PROGRAMS

CLICK HERE for information about the
Endorsed Programs
.

Contact Polly Penna at CADA to request more information on any of the programs below: polly.penna@coloradodealers.org

Choosing a CADA endorsed provider supports our work for the Colorado retail vehicle industry.
________

www.afadvantage.com

Supplemental Employee Benefits
________

www.federatedinsurance.com

General Liability
________

www.incom-direct.com

Merchant Transaction Processing
________

http://www.kpaonline.com/

HR Management & Online Compliance

Environmental / Health & Safety Compliance
________

www.lbtelecom.net

Telecommunications
________

https://www.nadart.org/

Retirement plan management
________

www.business.officedepot.com  

Office Supplies
________

www.reyrey.com/solutions/document
_solutions

Document Solutions / Forms
________

www.siegeloil.com

Oil, Lubricants, Service Chemicals & Reconditioning Products
________

www.unifirst.com

Uniforms / Standard Workwear
________


www.pinnacol.com

Workers Compensation


 

 


If this e-newsletter does not display correctly,
CLICK HERE
to access the web-based version.


CADA Open Road is now beginning its sixth year of service, providing uninterrupted weekly news and information for Colorado automotive professionals to better compete in our industry, since January 3, 2007.


a


 AUTO INDUSTRY NEWS AT A GLANCE

Listed here are several articles pertaining to the
auto industry in general that appeared recently in newspapers and other media outlets across the nation.



…more news articles are included at the end of this issue.




SERVICE ADVISORS OVERTIME EXEMPTION EXTENDED THROUGH MARCH

Congressional legislation, signed into law today, to prevent a government shutdown includes an extension of a federal overtime exemption for service advisors through March. Since the late 1970s, the U.S. Department of Labor (DOL) has held that the frontline employee-salespersons in the service department remain exempt from federal time-and-a-half pay requirements. In 2011, DOL attempted to reverse this policy. Congress intervened and temporarily stopped the Department from enforcing the change. The Congressional ban was included in a funding measure that was set to expire at the end of September. Under the new continuing resolution that extends government spending through March 2013, DOL is prevented from enacting the new policy for service salespeople. “Reversing 40 years of precedence of overtime requirements for service advisors could force dealers to make potentially costly compensation and staffing changes,” said NADA Chairman Bill Underriner. “Altering overtime rules after 40 years with little to no justification hinders a dealer’s ability to create new jobs." Even with DOL's restrictions in place, NADA has assisted several dealers involved in wage and hour audits by letting overly-aggressive federal inspectors know of the prohibition. Underriner also recognized Rep. Denny Rehberg, R-Mont., who chairs the House subcommittee that funds the DOL. “Under Chairman Rehberg’s leadership, Congress extended the overtime exemption for service advisors until March 27, 2013. America's franchised auto dealers applaud his efforts,” Underriner added.

Source: NADA Legislative Affairs (NADA Headlines, Sept. 28, 2012)



STATE TAX AUDIT HITS DEALERSHIP WITH MAJOR ASSESSMENT ON LOANERS

A CADA member dealership has been hit with an initial assessment of over $500,000 in a state tax audit relating to loaner vehicles.   If left to stand, this issue could impact many dealerships across Colorado—beyond just loaner vehicles.

Background – Full Use Plates:
As all Colorado dealers are aware, full-use plates cost just over $300 per year and allow dealers to utilize vehicles in inventory that are “offered for sale”, subject to some further clarifications in the rules.  Regarding these rules, there have been numerous disputes on interpretation of terms like “legitimate business interest” and prior language that disallowed any “commercial use”.  To address some of the confusion and gray area, last Fall CADA obtained a legal opinion that the latest rule directly conflicted with the statute and requested removal of language that might be construed to disallow full use plates on loaners or courtesy vehicles.   This effort was successful, and a rule was adopted effective June 30, 2012.  [CLICK HERE for the final Rule 48]. 

Current Tax Issue:
Meanwhile, this spring, state tax auditors assessed a dealership on loaner vehicles that were operated on full-use plates. The state seems to be arguing that the vehicles should have been registered with standard plates subject to sales tax on the full retail value.   There are many arguments that could apply, but the primary one is that back in 2004, CADA pursued legislation (HB04-1241) at the Colorado Capitol to address a similar audit against another dealership.  While that audit targeted demo use by employees, the legislation was broad to address this area more fully with legislative declarations that included the following:

  • Motor vehicles that are purchased by motor vehicle dealers for resale in the state are not subject to retail sales and use taxes while the vehicles are held in inventory by the dealers prior to retail sale.
  • At times, a motor vehicle dealer uses a motor vehicle that has been purchased for resale to promote the sale of a vehicle by permitting a current or prospective sales or service customer to temporarily use a vehicle to drive to and from the dealership and for incidental business and personal errands.
  • Such uses of the motor vehicle are incidental to the primary purpose, resale to a consumer or user, for which the vehicle was originally acquired by the dealer.
  • It is the declared policy of the state of Colorado to retain the retail sales and use tax statutory scheme as enacted by the general assembly and, in order to ensure the statutory scheme is implemented as enacted, it is necessary to clarify that the retail sales and use tax does not apply and has never applied to the use of a motor vehicle acquired primarily for resale by a motor vehicle dealer while held in inventory prior to resale of the vehicle.  . . .

The new law clarified that dealership inventory that is “purchased and held for resale” is exempt from tax when the following criteria are met:

  • the manufacturer's certificate of origin or certificate of title for the motor vehicle is assigned to the motor vehicle dealer;
  • the motor vehicle is included in a current list of vehicles for retail sale that is prepared by the motor vehicle dealer in the ordinary course of business; and
  • at any given time, the motor vehicle is available to be purchased and delivered to a retail customer within three business days.

Status:
At present, the dealership has retained an experienced tax attorney, Bruce Fowler, of Fairfield & Woods, P.C. to file an appeal.  It has been almost four months since that appeal was filed, with no response from the state.  Additionally, CADA has obtained a legal opinion letter from the same attorney stating that sales and use tax should not apply to dealership loaner or courtesy vehicles provided they meet the criteria set in statute.  CADA plans to meet with D.O.R. leadership to attempt to reach agreement on the application of this statute to loaners and courtesy vehicles.   Regardless of the outcome of this particular case, there should be a clear determination in order to prevent other dealerships from being hit with a similar assessment in the future.  Updates will be provided as they become available.     

CLICK HERE for the full alert on this topic, with additional background and information.

* * * * * * * *

If you have questions on any legal or regulatory topic, please contact:

Tammi McCoy, VP, tammi.mccoy@coloradodealers.org, 303.282.1449

Tim Jackson, President, tim.jackson@coloradodealers.org, 303.282.1448

DISCLAIMER: CADA is not authorized to dispense legal advice.The information contained in this weekly email is intended to provide important updates and reminders regarding statutes, litigation, and regulations. CADA always advises that dealers should consult legal counsel on the specifics of any laws or regulations to ensure proper compliance

* * * * * * * *


a
TITLE PROCESSING TRAINING: SAVE-THE-DATE
Please send us your suggestions for topics to cover!

SAVE THE DATE for Wednesday, October 24th, Morning session. 

CADA will be offering title processing training!  This session will be conducted by a title training specialist who has worked for both a county, and for a new vehicle dealership.  It will cover intermediate to advanced topics.  More information will be coming. As we are still defining the content of this session, please submit your recommendations for topics, issues, and any recurring problems you would like to see addressed.  It is anticipated that this session will also include a representative from Denver DMV, a former state titles and registration employee, and other county title processing former personnel.  

* * * * * * * *

KPA WEEKLY WEBINAR: 
Covers an Environment & Safety or an HR topic each week

Every Thursday
 
10:00-11:00am (MST)

CLICK HERE for upcoming topics and to register!

Previously recorded webinars are also available at the above link.

aa

* * * * * * * *

aTO REGISTER ONLINE FOR ANY CADA
SEMINAR OR EVENT, PLEASE VISIT:

www.coloradodealers.org/registration
Event Description
Date/Time
Location

CADA Title Processing Training

SAVE THE DATE!

Wed., Oct. 24th Morning/breakfast


More details coming soon!

Intermediate/advanced training; if you have suggestions for specific topics you want to see covered, email or call: tammi.mccoy@coloradodealers.org
303.282.1449

KPA Weekly Webinar

Covers an Environment & Safety or an HR topic each week


Every Thursday  

10:00-11:00am (MST)


CLICK HERE for upcoming topics and to register!

Previously recorded webinars are also available at the above link.

If you have a particular area of interest or would like to suggest a training seminar topic, please contact Marsha Temple at 303.457.5123 or marsha.temple@coloradodealers.org


LUNCHEON NEXT WEEK
EMPOWERING
THE JOB CREATORS

The voice of the business leader has often been drowned out by politicians and pundits who have never created jobs or met a payroll.

As business leaders, we experience first-hand how government policies affect our ability to make a profit, create jobs, and take care of our employees through competitive compensation and benefit programs.

I would like to introduce you to an organization that I believe will be very helpful to employers all across America. Job Creators Solutions was formed to promote free- market policies that encourage job creation and is a joint effort of businessman and former presidential candidate, Herman Cain, and Bernie Marcus, the co-founder of Home Depot. They have joined forces to establish Job Creators Solutions and are embarking upon a mission to empower employers with tools and information to educate their employees about policy issues and candidate positions affecting their company, job security, wages and benefits, and their families. Under federal election law, employers can educate their employees about these issues.

Their first major undertaking is called Truth Tour 2012, which will be in Colorado next week with two luncheons for business leaders.  I look forward to seeing you and working to preserve our system of free enterprise and the American Dream for our children and grandchildren.   
                                                                                     -- Appreciatively yours, Tom Lucero

In Colorado next week – as part of a 30-City / 30-Day Tour Nationwide:

Job Creators are invited to learn more about this project from co-founder, Herman Cain 

Seating will be limited, RSVP TODAY to:  tom.j.lucero@gmail.com or 970.443.8244

Details for Denver:
October 9, 2012
11:30-1:00
Renaissance Hotel
3801 Quebec Street
Denver, CO 80207
Lunch is Free


Details for NOCO:
October 10, 2012
11:30-1:00
Hilton Hotel
425 West Prospect
Fort Collins, CO 80526
Lunch is Free

More about Job Creators Solutions:
Big government proponents have, for years, effectively leveraged the support of labor unions and their members on these and other related issues.  Job Creators Solutions seeks to be a voice for free-enterprise. Job Creators Solutions promotes a better informed public and electorate by:  

  • Educating employers about the information they can provide to their employees,
  • Legal opinions detailing employer rights and ability to participate in political education programs,
  • Providing employers with tools to communicate effectively and legally with employees such as:
    • Talking points or scripts for town hall meetings, company television, and podcasts
    • Issue guides that may be distributed to your employees
    • Books and instructional materials for a non-partisan, free-enterprise educational seminar
    • Non-partisan educational materials that teach employees how to engage in civic involvement
    • Content for company-wide social media sites, which employees are invited to follow
    • On ground support from Job Creators Solutions field staff.

Visit:  www.jobcreatorssolutions.com



a

REGISTER NOW!
Join colleagues’ and peers and hear about issues important to you, your dealership and your operations. Learn what is happening in Colorado’s legislative and regulatory arena and what CADA is doing to proactively address problems that affect dealer survivability and profitability. These meetings are free to CADA member dealers.

CADA Regional Meeting Topics

  • Colorado Dealer Priorities – Annual Review
  • Value of Auto Dealer Victories
  • Legislative Report from the 2012 Session of Colorado General Assembly
  • Motor Vehicle Dealer Board and Regulatory Updates
  • See What’s Ahead: 2013 Colorado Legislative Preview

RSVP: Email: marsha.temple@coloradodealers.org | Phone: 303.282.1448 | Fax: 303.831.9100


a

aThe NADA Convention & Expo is the automotive industry event of the year and the world's largest international gathering place for franchised new-vehicle dealers. The convention offers dealers a rare chance to meet face-to-face with executives of major auto manufacturers and features hundreds of exhibitors showcasing the latest equipment, aservices and technologies and dozens of workshops with the industry's best trainers. The 2013 NADA Convention & Expo will take place Friday, Feb. 8 through Monday, Feb. 11, 2013 in the West Concourse of the Orange County Convention Center in Orlando, Florida.


a

Event Description
Date/Time
Location

CADA Regional Meetings

In various cities throughout Colorado

Tuesday, Sep. 18 - Tuesday, Dec. 11


 

CLICK HERE for registration and information!

NADA Convention & Expo 2013



Friday, Feb. 8th - Monday, Feb. 11th
2013

 

CLICK HERE for registration and information!




LET US KNOW ABOUT YOUR ACCOMPLISHMENTS!

Have you or anyone else at your dealership won an award recently? Have you or your dealership provided any outstanding community service? We want to recognize such accomplishments. Please send us a brief write-up of the award or event along with any other information to milestones@coloradodealers.org. Also include your contact information for further follow-up.


THE AFTERFACT

  • Hyundai Genesis Coupe Cosworth Is Our Kind Of Tuner Car
    Jalopnik, October 2
    Cosworth is a legendary name in performance cars, and now Hyundai has contracted them to tune up their Genesis Coupe.
  • 2013 Nissan Sentra gets $16,770 base price
    Auto Week, October 1
    Nissan has released sticker prices for the redesigned 2013 Sentra sedan. The base S with a six-speed manual transmission carries a bottom line of $16,770 including the $780 destination fee.
  • Here Are The Top Quality SUVs And CUVs
    AOL Autos, August 31
    With so many options in the SUV and CUV segment these days, it's hard to put a finger on what really separates one utility vehicle from another.
  • Toyota Overhauls Engine Plans
    MSN Autos, October 1
    For years, Toyota Motor Corp. has put hybrids at the center of its powertrain technology strategy, all but oblivious to the rapid fuel economy advancements rivals have made in the humble gasoline engine.

If you want to be added to our mailing list, please CLICK HERE.

To remove yourself from this list, click on this link.

 
Colorado Automobile Dealers Association
290 East Speer Boulevard Denver, CO 80203
Telephone: 303.831.1722 | Facsimile: 303.831.4205
www.coloradodealers.org