April 5, 2016
TITLE SPONSOR OF THE
2016 CHARITY PREVIEW PARTY
IN THIS ISSUE
UPCOMING SEMINARS & EVENTS
– Webinar - Find Out What the Upcoming Damage Disclosure Rule Will Have on Your Dealership!
– 2016 ACA Basics - Now on Demand!
– Thank You to This Year's Sponsors of the Innovative Dealer Summit
– Thank You to Our Sponsors of the 8th Annual Charity Preview Party
– KPA WEBINAR: Determining Employee Classification: Employee vs. Independent Contractor
– All Seminars & Events
– Check out CADA's Blogs
DEALER NEWS & INFORMATION
– Automotive News Best Practices
– Clear The Air Foundation 60 Second Video
– Auto Industry News at a Glance
REGULATORY & LEGAL UPDATES
– Damage Disclosure - Revised Rule Goes Into Effect April 14 2016
– Pitney Bowes / Geotax Sales and Use Tax Database -- Update
– Federated Insurance: Auto Dealer Claim of the Month
– UniFirst... The Nation's Preferred Auto Uniform Supplier
ALLIED MEMBERS / ANNUAL MEMBER GOLF EVENT SPONSORSHIP ADS
– Thank you to the Sponsors of the 11th Annual CADA Member Golf Event
HIGHLIGHTS & TRANSITIONS
Let Us Know About Your Accomplishments!
–All the News That's Fit to Email!
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CADA Open Road is now beginning its eighth year of service, providing uninterrupted weekly news and information for Colorado automotive professionals to better compete in our industry, since its first issue on
Jan. 3, 2007.
WEBINAR: FIND OUT WHAT THE UPCOMING DAMAGE DISCLOSURE RULE WILL HAVE ON YOUR DEALERSHIP!
THANK YOU TO OUR SPONSORS OF THE 8TH ANNUAL CHARITY PREVIEW PARTY
THANK YOU TO THIS YEAR'S SPONSORS OF THE INNOVATIVE DEALER SUMMIT
CHECK OUT CADA'S BLOGS
“The 102” is the Colorado Automobile Dealers Association's blog featuring the Chair's Column, written by 2016 CADA Chair Fletcher Flower, printed in The Bulletin, CADA's monthly print publication.
CADA also recently unveiled a new events and updates blog, which you can follow by clicking here.
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CLEAR THE AIR FOUNDATION 60 SECOND VIDEO
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.
- The car industry has never witnessed what Tesla is about to go through
The Washington Post, April 4
Most of the best selling cars in America, such as the Honda Accord or Nissan Altima, generally hit around 300,000 in sales every year.
- Tesla Model 3 order frenzy makes it 'the iPhone of the auto industry'
Computer World, April 4
Tesla CEO Elon Musk released this mock up of the Model 3 on Sunday via Twitter.
- The Auto Industry Gets It
Slate.com, April 1
Thanks to cheap gas, Americans are losing interest in efficient, innovative vehicles. Carmakers know better.
- Uber and Lyft could help the car industry in one big way
Business Insider, March 29
Ride sharing is supposed to strike fear in heart of the auto industry.
- Pickup Trucks Drive U.S. Auto Sales Past 4 Million Mark
Trucks.com, April 1
Pickup truck sales surged in the first quarter as businesses rushed to replace aging equipment and consumers, encouraged by both low gas prices and interest rates, purchased bigger vehicles.
- Michigan Senator Wants Auto Industry to Lead Vehicle Cyberdefense
Gov. Tech, March 30
Sen. Gary Peters is hoping that the private industry will take measures to protect driver information and build defenses to vehicle hacking rather than the federal government.
- FTC sues Volkswagen over ‘clean diesel’ ads
Detroit News, Autos Insider
See more at www.autosinsider.com
- Video Review: The Honda Civic Touring Is Packed With Technology and Space
The New York Times, Wheels
See more at http://wheels.blogs.nytimes.com
- Judge gives Volkswagen one month to plan diesel-emissions fix
Los Angeles Times, Autos
See more at http://www.latimes.com/classified/automotive/highway1/
- Lincoln reignites the Navigator with bold concept
See more at http://autos.aol.com/
- The Future Is Electric for BMW
The Wall Street Journal CARS
See more at http://online.wsj.com/public/page/news-autos-automotive.html
…more news articles are included at the end of this issue.
DAMAGE DISCLOSURE - REVISED RULE GOES INTO EFFECT APRIL 14 2016
A new damage disclosure rule goes into effect April 14, 2016. CADA staff and outside counsel Michael Dommermuth, Fairfield and Woods, P.C. participated actively in a stakeholder process that began in May, 2015. This stakeholder group consisted of the dealer associations, Auto Industry Division staff, plaintiff attorneys, a Better Business Bureau representative, an Attorney General’s office representative and former members of the Motor Vehicle Dealer Board (MVDB). After numerous meetings and revisions, the Auto Industry Division submitted a final rule proposal to the dealer board in a formal rulemaking process. The board, after reviewing the entire record of the stakeholder process, considering further comments to the rule as proposed, recommended its own final changes, and formally adopted the rule.
Click here for the full announcement along with a copy of the rule.
Click here for CADA guidance on this topic.
A webinar will also be offered on Tuesday, April 12th at 10:00am there will be ample opportunity for Q&A. Click here to register.
Presented by Michael Dommermuth, Fairfield and Woods, P.C
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PITNEY BOWES / GEOTAX SALES AND USE TAX DATABASE -- UPDATE
As previously announced, Pitney Bowes/GeoTax (formerly Group1) made some changes to their tax lookup database last week, mainly to merge the Colorado specific site into their national solution. As most dealerships have experienced by now, there were some issues related to this release. The database provider is working on corrections to identified issues and expects that could happen later this week, or very soon. In the meantime, here is the latest:
- The database can be accessed at either taxco.g1.com OR www.geotax.com.
- The state rate-sheet can be used as a ‘double-check’ on the address lookup as it lists both sales/use tax rates for all state-collected jurisdictions and includes whether or not the use tax listed applies to motor vehicle sales: https://www.colorado.gov/pacific/sites/default/files/DR1002.pdf
- Regarding home rule city use taxes (not listed on the DR1002), it seems that the Pitney Bowes/Group1 database previously had auto-specific use tax rates, but they may not have realized this. Dealers seemed to be the primary constituency utilizing their database for use tax. The database now shows the general use tax rate in a jurisdiction, even if it may not apply to vehicles. The company is working on auto-specific use tax rates---they expect to release that later this week.
a. While there is now a disclaimer regarding this upfront on the new lookup page, this disclaimer was on the prior site as well, but was just not as prominent:
“AUTO Dealers please note: The tax rates returned by this website are for General Sales Tax and may not apply to an automotive sale. Cities such as Greenwood Village Colorado do not impose the use tax that is returned. If you are not familiar with a municipalities rules please contact them directly.”
The issues/errors we are aware of include the following:
a. Use tax is missing in some key counties, including Arapahoe, Jefferson, and Douglas
b. Some RTD rates seem to be incorrect
c. Some special districts seem to be displaying use tax incorrectly
d. Continue to report any errors or discrepancies to email@example.com – please send a copy/PDF of the database lookup detail with the address and the error, so we can relay to the database provider.
- The database does indicate a per day limit on lookups of 50 per day. The limit is per IP address / computer, so can be exceeded by using a different computer. CADA will explore other options to this limit for dealers.
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If you have questions on any legal or regulatory topic, please contact:
Tammi McCoy, VP, firstname.lastname@example.org, 303.282.1449
Tim Jackson, President, email@example.com, 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.
KPA WEEKLY WEBINAR:
Covers an Environment & Safety or an HR topic each week
Thursday, April 21, 2016, 10:00 am Mountain Time
Determining Employee Classification: Employee vs. Independent Contractor
Steps to following the law when classifying employees.
It may seem like the obvious choice to hire employees as independent contractors, but unfortunately it's not always that easy. Employees can only be classified as independent contractors if they meet specific guidelines. Seemingly simple things such as being on company payroll, use of company property, and the permanency of the relationship can mean that they cannot be independent contractors. Join KPA's HR expert Brianna Stashak as she delves into the difference between employees and independent contractors. Brianna will discuss: The 5 Part Test, Appropriate Independent Contractor Documentation, Management Best Practices
Click here for upcoming Human Resources webinars.
Click here for upcoming EH&S webinars.
Previously recorded webinars are also available
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Webinar: Find Out What Impact the Upcoming Damage Disclosure Rule Will Have on Your Dealership
Tuesday, April 12, 2016
For more information please contact:
Tammi L. McCoy
2016 ACA Basics
For more information or to purchase a copy, please contact:
KPA Weekly Webinar
Special Event: HR Practices Webinar for Group Dealerships
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 firstname.lastname@example.org
FEDERATED INSURANCE: AUTO DEALER CLAIM OF THE MONTH
Federated Insurance’s “Claim of the Month” – Could it happen to you?
A sales rep drove a high-end demo home. That evening, she took friends out for dinner and drinks. On the way home, she caused an accident that resulted in two serious injuries, and the death of a single mother of three.
CLAIM AMOUNT: $3.5 million
What policies are in place to help prevent this from happening at your dealership? Do you know who’s driving your vehicles? Federated Insurance recommends several best practices to help protect your business and manage risks; for example,
- Know your drivers. Order MVRs on all employees who may drive company vehicles.
- Limit the number of demos.
- Transfer the risk: get the title out of the dealership’s name.
These are just a few loss control recommendations you can use to help protect your dealership. To learn more, contact your local Federated Insurance representative and request a copy of our Auto Dealer “Keys to Success” risk management education materials. Federated Insurance is recommended by 18 state and national auto dealer associations just like yours for customized insurance programs and value-added risk management services, such as Federated’s Shield Network®, the Risk Management Resource Center, and the Federated Employment Practices NetworkSM. Visit www.federatedinsurance.com to discover resources you can use to create or ramp up your own risk management program, or to contact your local representative.
CLICK HERE to download a copy of this article.
Federated Mutual Insurance Company • Federated Service Insurance Company* • Federated Life Insurance Company
Owatonna, Minnesota 55060 • Phone: (507) 455-5200 • www.federatedinsurance.com
*Not licensed in the states of NH, NJ, and VT.
This article is for general information regarding risk prevention and should not be considered legal advice. The claim example is only a basis for discussion and illustrates only one possible scenario. Coverage for actual claims will be determined solely by individual policy terms and facts of the claim. The recommendations presented are not guaranteed to reduce or eliminate any risk of loss. Seek qualified counsel regarding questions specific to your circumstances. © 2015 Federated Mutual Insurance Company.
Federated Insurance specializes in general liability/business insurance for selected industries, including auto dealers. CADA members interested in more information, contact Mike Russell, Senior Account Executive, Cell: 480.216.5445 or email@example.com
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UNIFIRST... THE NATION'S PREFERRED AUTO UNIFORM SUPPLIER
THANK YOU TO THE SPONSORS OF THE 11TH ANNUAL CADA MEMBER GOLF EVENT
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 firstname.lastname@example.org. Also include your contact information for further follow-up.
ALL THE NEWS THAT'S FIT TO EMAIL!
- Change or Risk Extinction, Hyundai Executive Warns Dealers
Wards Auto, March 31
U.S. auto dealers should switch to a one-price selling model, abolish many other long-held but outmoded sales practices and restructure their business models in the face of a rapidly evolving new-vehicle buyer base, Hyundai’s top U.S. executive says.
- Report Says Automakers Finding It Easier to Be Green
Wards Auto, March 29
The National Automobile Dealers Association (NADA) has announced a partnership with the National Safety Council's MyCarDoesWhat campaign to help raise awareness of new safety features in vehicles.
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