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JUNE 10, 2009
IN THIS ISSUE
 DEALER NEWS & INFORMATION
– Automotive News at a Glance
REGULATORY & LEGAL UPDATES
– Dealership Q&A: Sales/Use Tax on Transportation Charges
– Updated Information on State Hybrid/Alternative Fuel Tax Credits
LEGISLATIVE UPDATE
– CADA Goes To Bat for Colorado GM and Chrysler dealers
– 2009 Legislative Re-Cap Available at Coloradodealers.org!
UPCOMING SEMINARS
– Upcoming Seminars
– Employment Law WEBINAR
– Controllers: Taxation Issues and DMS Cost-Reduction
– CADA Virtual Seminar: Manufacturer Bankruptcy: What it Means and Proactive Steps- Now Available in Pre:Recorded Format!
– CADA Virtual Seminar: Employer Requirements for New COBRA Subsidy; Archive Now Available
CALENDAR OF EVENTS
– Upcoming Events
– Dealer Management and Leadership Summit
– CADA Annual Member Golf Event
DEALER MILESTONES,
HIGHLIGHTS & TRANSITIONS
–Tim Jackson Out of the Office Next Week to Ride the Rockies!
–Share Your Accomplishments
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
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.
CADA STAFF
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ENDORSED VENDOR/PROGRAMS
CLICK HERE for information about the
Endorsed Vendors/Programs.
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If you have trouble viewing any of the links or documents in this e-newsletter, please CLICK HERE to access the web-based version.
 
AUTOMOTIVE 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.
DEALERSHIP Q&A: SALES/USE TAX ON TRANSPORTATION CHARGES
QUESTION:
Are delivery or transportation charges taxable in Colorado?
ANSWER: Not for the state of Colorado and other state-collected jurisdictions, provided certain conditions are met.
According to the state Department of Revenue, for the state and state-collected taxing jurisdictions, no they are not when certain conditions are met. Following is an excerpt from the Colorado Sales and Use Tax General Information and Reference Guide (revision date 5/8/07):
Most pure services are not subject to Colorado sales tax. . . . The transportation of tangible personal property between a retailer and purchaser is a service presumed to be not subject to sales or use tax. Transportation charges are not taxable if they are both
(1) separable from the sales transaction, and
(2) stated separately on a written invoice or contract
See FYI Sales 29, Special Regulation: Transportation Charges. Dealer preparation and handling charges (e.g., delivery and handling charges) for motor vehicles are taxable.
As with all sales and use taxes in Colorado, keep in mind that home rule cities that collect their own local sales/use taxes may have entirely different guidelines and must be contacted directly. These cities are listed in Colorado Sales/Use Tax Rates (DRP 1002*), along with their tax office telephone numbers and addresses.
*NOTE: The DRP 1002 is updated to reflect tax changes January 1 and July 1 of each year; the July 1 tax changes are not yet posted.
More tax information can be found at: http://www.colorado.gov/revenue/tax
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UPDATED INFORMATION ON STATE HYBRID/ALTERNATIVE FUEL TAX CREDITS
The Department of Revenue has an updated FYI publication available on alternative fuel tax credits. Income Tax FYI No. 9, Alternative Fuel Income Tax Credits Colorado Sales and Use Tax General Information and Reference Guide (revision date 04/09). See page 9 for credits available for selected common vehicles.
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If you have questions on any legal or regulatory topic, please contact:
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
 
CADA GOES TO BAT FOR COLORADO GM AND CHRYSLER DEALERS
Though the Colorado General Assembly has adjourned until January, political activity is still a big priority at CADA given the current state of the automotive industry. Last week, several Colorado auto dealers, along with Tim Jackson and I, flew to Washington DC for federal legislative meetings relative to the recent Chrysler and GM bankruptcies and resulting dealer terminations. In all, CADA had five Congressional meetings, a breakfast and lunch meeting with NADA staff and lobbyists, and were front and center for the Senate Commerce Committee hearing on GM and Chrysler Dealership closures. Many of you e-mailed and sent text messages to Tim and I as we sat in the meeting – two rows behind Fritz Henderson, CEO of General Motors, and Jim Press, President of Chrysler. It was televised on C-SPAN with excerpts rebroadcast over all major national and international media outlets.
While in DC, dealers and staff met with the following members of the Colorado Congressional delegation and/or their staff: Sen. Mark Udall, staff (D-CO), Congresswoman Betsey Markey (D-CO), Sen. Michael Bennet, staff (D-CO), Congressman Ed Perlmutter (D-CO), Congressman Doug Lamborn (R-CO). We also had a meeting scheduled with Congressman Mike Coffman (R-CO), but were unable to make the meeting due to the length of the Senate Commerce Hearing.
In attendance on behalf of Colorado dealers was Elizabeth Daniels of Daniels’ Chevyland in Colorado Springs, Brett Hajek of Hajek Chevrolet in Longmont, Jim Fynes of Phil Long Jeep Chrysler in Denver, DJ Jones and Tony Cuomo of Tri-County GM in LaJunta, and Elizabeth Cobb with the Colorado Springs Gazette.
While the entire legislative delegation was sympathetic to dealer terminations, especially the manner in which they have been carried out by Chrysler and GM, Congressman Perlmutter and Congressman Lamborn have gone the extra mile. Congressman Perlmutter met with Tim and I nearly three weeks ago, when the first round of terminations hit, and he was not only sympathetic, but was immediately ready for action. Since that meeting, Congressman Perlmutter has reviewed SB09-091, CADA’s franchise bill that was signed into law by Governor Ritter in April, and plans to use parts of it as the basis for a federal bill. Additionally, Congressman Perlmutter has had several meetings with the media and key politicos, including Congressman Barney Frank (D-MA), chairman of the House Financial Services Committee, and several members of President Obama’s Auto Task Force in an effort to introduce legislation that has a high likelihood of passage.
Additionally, Congressman Lamborn has been extremely involved with Colorado Springs dealers, namely Elizabeth Daniels, in their battles with General Motors.
It appears there will be several federal bills filed in the next few days, perhaps even one by Congressman Perlmutter, to bring immediate aid to dealers that were terminated by Chrysler and General Motors.
Please watch your CADA Open Road and other CADA publications for up to the minute information on this federal legislation. And as always, please contact Tim and me with any questions.
From Left to Right: Tim Jackson, CADA President; Melissa Kuipers, CADA Lobbyist; Tony Cuomo, DJ Jones, Elizabeth Daniels, Elizabeth Kalb, Brett Hajek, Jim Fynes.
Photo taken outside the Hyatt Capitol Hill in Washington DC
Jim Press, President of Chrysler and Tim Jackson. At the conclusion of the Senate Commerce Hearing, Tim Held a brief discussion with Jim Press and grilled him on why Chrysler chose to terminate some of the top-performing dealers in Colorado.
2009 LEGISLATIVE RE-CAP AVAILABLE AT COLORADODEALERS.ORG!
By Melissa Kuipers, Vice President of Government Relations & Communications
CLICK HERE to access the the Colorado Automobile Dealers Association 2009 Legislative Re-Cap!
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Questions or Comments? Please contact:
Melissa Kuipers – VP of Government Relations and Communications
melissa.kuipers@coloradodealers.org, 303.457.5115
EMPLOYMENT LAW WEBINAR
Reducing Lawsuit Risks of Terminations and Staff Reductions
CLICK HERE for more information!
CLICK HERE to register online!
Thursday, June 18th
1:30 - 2:30 pm (may go to 3pm with Q&A)
Speaker: Todd Fredrickson
Top Denver employment attorney, Fisher & Phillips, LLP 
Don't miss this upcoming online seminar!
The EEOC’s 2008 report shows a 15.2% increase over 2007 in charges against private employers, and the highest numbers to date. In times of high unemployment, charges of discrimination tend to rise.
Many dealerships have been forced to downsize operations and/or may be contemplating further reductions. This session will show how to minimize the risk of claims and lawsuits stemming from terminations and reductions in force (“RIFs”) along with practical guidance to end employment relationships as amicably as possible. Highlights include:
- Avoidance of discrimination claims, layoff notification laws, laws covering severance agreements and when to use them, and various end-of-employment issues such as final pay, COBRA, and unemployment compensation.
- Including the implications of recent and significant changes to the Americans with Disabilities Act (ADA) and the Family Medical Leave Act (FMLA)
- Retaining essential talent as part of the RIF analysis, supporting those employees who are in transition, and effectively communicating with employees regarding terminations and workforce reductions
- Checklists and plans to conduct proper and defensible terminations and RIFs
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CLICK HERE for more information
on this training session. |
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| Event Description |
Date/Time |
Location |
Employment Law WEBINAR:
Reducing Lawsuit Risks of Terminations and Staff Reductions
By Todd Fredrickson, top Denver employment attorney, Fisher & Phillips, LLP
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Thursday, June 18th
1:30 – 2:30pm (may go to 3pm with Q&A) |
WEBINAR / VIRTUAL SEMINAR
In down economic times, reductions in force and terminations can lead to costly lawsuits. This session will cover how to minimize the risk of employee claims and lawsuits, and also address relevant laws/regulations as well as tips on employee communications.
CLICK HERE for more information and a registration form
CLICK HERE to register online!
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Controllers: Taxation issues and DMS Cost-Reduction
Bruce Nelson, CPA
Brad Bowers, CPA
Paul Gillrie, The Paul Gillrie Institute
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Wednesday,
July 15, 2009
7:30am – Noon (time tentative) |
CADA Office, 290 East Speer Blvd, Denver
CPAs will review lessons learned from recent dealership tax audits, and advise dealerships on areas of risk in state/local tax audits as well as other sources of liability.
Paul Gillrie, national consultant and expert on DMS system negotiations, reducing monthly costs/billing analysis, and on the DMS market overall.
Registration information available soon
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CADA Virtual Seminar: Manufacturer Bankruptcy: What it Means and
Proactive Steps for You to Prepare
Understand your rights and responsibilities in a bankruptcy proceeding
NOW AVAILABLE IN PRE-RECORDED FORMAT!
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Archive of this webinar can be viewed any time |
Session was completed May 1, 2009
-Includes detailed Q &A by those linked in on May 1st
Click here for a registration form and more information (login information and slides provided upon registration)
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CADA Virtual Seminar: Employer Requirements for New COBRA Subsidy
Speaker: Penny Wofford, Ford & Harrison LLP
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Archive of this webinar can be viewed any time
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Click here for a registration form and more information (login information and slides provided upon registration)
Session was completed April 7, 2009
-Includes detailed Q &A by those linked in on April 7th
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| Event Description |
Date/Time |
Location |
Reception to Honor John Suthers
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Wednesday, June 10
5 - 7 p.m.
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CADA Headquarters
William D. Barrow Building
290 E. Speer Boulevard
Denver, CO 80203
RSVP to Lauren Stadler
303.457.5123
lauren.stadler@coloradodealers.org
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Dealer Management & Leadership Summit
Save the Date
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Thursday, Aug. 13
8 a.m. to 7:30 p.m
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Marriott Denver South at Park Meadows Drive (I-25 and Lincoln in Douglas County)
More information on speakers/agenda will be posted online as finalized. |
CADA Annual Member Golf Event
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Monday, August 24, 2009
12:00 Noon Shotgun Start
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Glenmoor Country Club
110 Glenmoor Drive
Cherry Hills Village, 80113
303.781.3000
www.glenmoorcc.org |
TIM JACKSON OUT OF THE OFFICE NEXT WEEK TO RIDE THE ROCKIES!
Tim Jackson, President of CADA, will be out of the office (and out of touch) next week as he takes on the 380-mile cycling loop, ascending three of Colorado's most scenic mountain passes.
CLICK HERE to learn more about this exciting ride.
Safe travels Tim!
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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
- Roger Penske: 'We're going to build a Saturn team'
USA Today, June 7
Roger Penske, known for his successful racing teams, in addition to being the nation's second-largest auto dealer, has struck a tentative deal to buy the Saturn brand from General Motors.
- Analysts: Penske could give Saturn the life that General Motors couldn't
The Detroit News, June 6
Detroit auto icon Roger Penske could succeed where General Motors Corp. failed by giving Saturn attention and resources that were inconsistently doled out after GM launched the brand in 1985.
- Saturn deal is called a new business model
Detroit Free Press, June 6
Detroit businessman Roger Penske's move to acquire General Motors' troubled Saturn brand and dealer network could be pioneering -- the start of a new strategy for selling cars and trucks in the United States, experts said Friday.
- Imagining a G.M. Fire Sale
The New York Times, June 5
It’s hard to envision a company as large and complex as General Motors being sold off for scrap. But that’s just what the restructuring pros at AlixPartners had to do for their liquidation analysis of the company.
- No Gloom and Doom at Car-Dealer School
The Wall Street Journal, June 5
On a Saturday morning in May, Emily Bourne donned a cap and gown and collected a diploma in a field hardly known for its job prospects: auto retailing.
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