February 21, 2007
Volume #1, Issue #8

  DEALER NEWS
     - 40 new gas pumps coming to CO
     - XM and Sirius Merger

  LEGISLATIVE STATUS REPORTS
     - Sunset Review Time at CO Capitol

  REGULATORY UPDATES
     - Titling and Sales Tax Q & A

  UPCOMING SEMINARS
     - Unclaimed Property Compliance
       Seminar

  CADA CALENDAR OF EVENTS
     - Upcoming Events for 2007


    Click here for Open Road archives.



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40 NEW GAS PUMPS COMING TO COLORADO

Excerpt from the Denver Post article, "Two-hour promotion offering E85 for 85 cents" (February 15, 2007):

State and federal officials and General Motors announced plans today for 40 new E85 fueling pumps at 22 gas stations to be opened in Colorado by the end of this year. Currently there are 13 E85 fueling stations in the state.

Cars and trucks designated as "flex fuel" can run on E85 or any combination of gasoline and ethanol.

CLICK HERE to read the entire article.

 

* * * * * * *

“Colorado to get 40 more ethanol pumps”
Aired on 9News/KUSA-TV and CBS 4 Denver/KCNC (February 16, 2007)

Gov. Bill Ritter said Thursday that 40 more gas pumps would start selling E85, a fuel made from 85 percent ethanol and 15 percent gasoline.

The additions at Pester Marketing and Western Convenience stations are part of a public-private partnership with General Motors and will take place over the next year, Ritter said.  

The Colorado E85 Coalition, a group of private companies, nonprofit organizations and government agencies, is helping with the program.

CLICK HERE to read the entire article and CLICK HERE to view a video clip.

* * * * * * *

XM AND SIRIUS MERGER

Excerpt from Automotive News article, “XM and Sirius plan merger” (February 19, 2007)

The two main U.S. satellite radio providers, Sirius Satellite Radio and XM Satellite Radio today said they would merge in a stock-for-stock deal, a move that has been long expected in the young industry.

XM and Sirius said they would combine to create a company with an enterprise value of $13 billion, including $1.6 billion in net debt.

  CLICK HERE to read the entire article.


IT IS SUNSET REVIEW TIME AT THE COLORADO CAPITOL

It’s that time again, time to evaluate, adjust and improve the Motor Vehicle Dealer Board and how it affects you as auto dealers.

  CLICK HERE to read this informative article by CAR lobbyist Jeremy Cottrell.


RECENT DEALER QUESTION ON TITLING AND SALES TAX OF MANUFACTURER-PROVIDED RENTAL CARS

 

QUESTION: We lease program cars from our manufacturer to rent to our customers.
Our county recently indicated we could no longer transact ‘Dealer Resale Titles’ for this purpose, which means we would have to utilize standard title and registration processes, requiring us to pay sales tax at the time of registration. Is this correct? 

 

ANSWER:  Your County is correct in that Dealer Resale Titles cannot be issued for these cars.  However, they are exempt from sales tax at the time of titling and registration because they are rentals for which the end-customer will pay the sales tax on each rental. Additionally, the payments to the manufacturer are also exempt from sales tax. 

 

The Taxpayer Services division publication, Sales Tax FYI No. 56, contains a brief overview of this topic. To obtain this exemption due to the resale nature of these transactions, first submit to the state Department of Revenue an application for a “Permit to Collect Sales Tax on the Rental or Lease Basis” (DR 0440) for each business location. This permit is available at no charge and entitles the dealership (lessor) to purchase the property without paying state or state-collected local sales tax on the purchases to be leased.

 

  CLICK HERE for the Sales Tax FYI No. 56 – Leases of Motor Vehicles

  CLICK HERE for the Permit to Collect Sales Tax on the Rental or Lease Basis (DR 0440)

CLICK HERE to view an index of other Sales Tax FYI’s and guidelines applicable to motor vehicles.  

 

If you have additional questions on this topic, please contact Tammi McCoy via email at tammi.mccoy@cadaonline.org or by phone at 303.282.1449.  The state call center is available as well:  Call Center for Colorado Taxes, (303) 238-SERV (7378), representatives are available Monday through Friday, 8 a.m. to 4:30 p.m.

 


unclaimed property compliance seminar

The Colorado Office of the Treasurer compliance/audit personnel will review Colorado unclaimed Property Laws and Regulations.

  • Colorado Unclaimed Property Act has covered automobile retailers since 1992

  • Avoid embarrassing fines and penalties by taking advantage of this seminar

Businesses in Colorado must take specific steps to return “unclaimed property”:

  • Learn what is covered, what steps you must take, and the annual reporting requirements

  • Covered property must be turned over to the state if not returned to the rightful owner

  • In general, “unclaimed property” includes various types of obligations or liabilities of a business which have been in active or have not been paid after an extended period of time after they are payable.  Examples include

  • Amounts owed to suppliers/vendors

  • Payroll/wage obligations

  • Stale, outstanding checks

  • Overpayments/refunds/rebates

  • Security or other deposits

  • Credit checks or memos

  • Uncollected referral fees

  • Due bills / We Owe Accounts (for parts, service, equipment ordered
    at the time of vehicle sale)

  • Loan collateral

  • Dividends or Interest

  • Matured insurance policy proceeds

   Please CLICK HERE for more information on this seminar.  Register for this seminar by returning the attached registration form or clicking on the respective link below.
 

City

Date / Time*

Location

Northern Colorado

Thursday, March 15

7:30 am to 9:30 am

Johnson’s Corner

2842 SE Frontage Rd (Exit 254 from I-25, Johnstown).  Phone: 970.667.2069

CLICK HERE to register for this location.

Colorado Springs

Thursday, March 22

11:30 am to 1:30 pm

Antlers Hilton, 4 So. Cascade Avenue (Uintah St. exit from northbound I-25; Cimarron exit from southbound I-25).  Phone: 719.955.5600

**NOTE:  CLICK HERE to register directly with Ann Winslow.

Grand Junction

Thursday, April 19

11:30 am to 1:30 pm

Grand Vista Hotel, 2790 Crossroads Blvd.

Phone:  970.254.7100

CLICK HERE to register for this location.

*Breakfast or lunch will be provided.


upcoming events for 2007

 

Event Description

Date / Time

Location

Legislators and Auto Dealers Networking Reception / Tim Jackson Birthday Event

 

Thursday, March 8

5:30 to 8 pm

Monarch Suite —
Denver Hyatt Regency at
Colorado Convention Center

Denver International
Auto Show

 

Wednesday, March 28 - Sunday, April 1

Colorado Convention Center
Click here for more details...

 

Designated Risk
Management Seminar

   - Industry Loss Analysis

Tuesday, April 10

8 am to 4 pm

William D. Barrow Building (CADA/ MDADA headquarters)
290 E. Speer, Denver

CADA Annual Golf Event

Monday, August 27

Noon shotgun start

Valley Country Club

14601 Country Club Dr., Aurora

Regional Member Briefings

   - Fall 2007

Dates to be determined

Location to be determined

MDADA Annual
Membership Meeting

Tuesday, November 27

11 am to 2 pm

Cherry Creek Country Club

(more details to follow soon)

 


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

 

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