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

CLICK HERE for a CADA staff listing


If you have questions
or suggestions
regarding this
e-newsletter, please
contact Lauren Stadler at
lauren.stadler@coloradodealers.org

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


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ENDORSED VENDOR/PROGRAMS

CLICK HERE for information about the
Endorsed Vendors/Programs
.

 


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.

  • "Black Tuesday": 14 Colo. Chrysler dealers close today
    Denver Post, June 9
    Hundreds of Chrysler dealerships, including Pollard Bros. Motors, have until today to shutter their Chrysler operations.
  • Colorado Auto Dealers' Jackson: General Motors' dealer reductions put automaker in 'jeopardy'
    San Francisco Business Times, June 1
    General Motors Corp.'s plan to end ties to more than 2,000 dealerships nationwide — including as many as 15 in Colorado — as part of its bankruptcy reorganization places the automaker's future "in greater jeopardy," the head of the Colorado Automobile Dealers Association said.
  • VIDEO: Fritz Henderson testimony regarding GM dealer terminations
    Yahoo! Video, June 4

    Chrysler president Jim Press greets General Motors CEO Fritz Henderson prior to Senate Commerce Committee Hearing
    NOTE:  Committee members, both Democrat and Republican, grilled these manufacturer representatives regarding the obscene volume of dealer terminations, the criteria used to determine which dealers were retained versus those terminated, circumvention of state franchise laws and the extremely poor communication with dealers regarding the short notice and timeframe accessible to terminated dealers.
  • Judge: Chrysler can terminate franchise deal with dealerships
    The Deuce, June 9
    A bankruptcy judge says Chrysler can go ahead with its plan to terminate the franchises of 789 of its dealers. The New York judge issued the order late Tuesday.
  • Chrysler Dealerships Slated for Closing
    The New York Times, May 16

    This map shows the names and locations of the 789 dealers Chrysler plans to close, about a quarter of the 3,200 total.
  • Chrysler creditors appeal to Supreme Court
    The Detroit News, June 6
    Chrysler LLC's creditors have until Monday to file a last-ditch appeal with the U.S. Supreme Court in their bid to block the company from selling its good assets out of bankruptcy court to a group headed by Italy's Fiat SpA.
  • Should automakers dump their dealers?
    Denver Business Journal, Business Pulse Survey, June 5
    Click on the link above to cast your vote and see what others are thinking.
    Nothing.   
    http://images.bizjournals.com/red_bar.gif 31%     
    The automakers should keep some of the dumped dealers.   
    http://images.bizjournals.com/red_bar.gif 19% 
    The automakers should keep all their dealers.   
    http://images.bizjournals.com/red_bar.gif 28%     
    The automakers need even more dealers.   
    http://images.bizjournals.com/red_bar.gif 3%    
    The automakers should get rid of even more dealers.   
    http://images.bizjournals.com/red_bar.gif 11%     
    Don't know.   
    http://images.bizjournals.com/red_bar.gif 7%
  • USA Today, Open Road
  • …more news articles are included at the end of this issue.

    * * * * * * * *



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

* * * * * * * *

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. 

* * * * * * * *

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


aa

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!

* * * * * * * *

Questions or Comments?  Please contact:

Melissa Kuipers – VP of Government Relations and Communications

melissa.kuipers@coloradodealers.org, 303.457.5115


a

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
A CLICK HERE for more information
on this training session.

* * * * * * * *

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

www.coloradodealers.org/registration
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


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!

Controllers: Taxation issues and DMS Cost-Reduction

Bruce Nelson, CPA

Brad Bowers, CPA

Paul Gillrie, The Paul Gillrie Institute


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

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!

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)

CADA Virtual Seminar: Employer Requirements for New COBRA Subsidy

Speaker: Penny Wofford, Ford & Harrison LLP


Archive of this webinar can be viewed any time

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


Event Description
Date/Time
Location

Reception to Honor John Suthers

 


Wednesday, June 10

5 - 7 p.m.

CADA Headquarters
William D. Barrow Building
290 E. Speer Boulevard
Denver, CO 80203

RSVP to Lauren Stadler
303.457.5123
lauren.stadler@coloradodealers.org

Dealer Management & Leadership Summit

 

Save the Date


Thursday, Aug. 13

8 a.m. to 7:30 p.m

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

Monday, August 24, 2009

12:00 Noon Shotgun Start

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!

* * * * * * * *

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