Effective Nov. 1, 2007, the Waste Tire Recycling Development Fee rate increased to $1.50 per tire. Retailers of new tires are required to collect the fee on every motor vehicle tire turned over to the retailer by a tire owner.

The retailer's invoice must show a separate line item for the Waste Tire Fee. The separate line item of the Waste Tire Fee on the invoice is not subject to sales tax. Motorcycle tires are also subject to the Waste Tire Fee. 

Any retailers of motor vehicle and/or motorcycle tires must file the "Waste Tire Exchange Fee Return" (DR 1772) on the same date the retailer's "Colorado Retail Sales Tax Return" (DR 0100) is due.

• The DR 1772 has been updated to reflect the new rate; CLICK HERE for the updated form.

• This and other state tax forms may be found on the Colorado Taxation Sales/Use Tax Forms Web page at www.revenue.state.co.us/TPS_Dir/wrap.asp?incl=salestaxforms

Colorado Department of Revenue

Taxpayer Service Division

www.TaxColorado.com 

* * * * * * * * *

A reminder that annual unclaimed property reports were due to the state of Colorado Nov.1. For those who are not familiar with this requirement, every business in Colorado is required to report “unclaimed property” to the state of Colorado, attempt to reach the actual owner(s), report/track these items, and ultimately turn over such funds to the state. The state Unclaimed Property staff has conducted several training sessions for CADA members to bring more awareness to this requirement. In those training sessions, audit staff has commented that almost every dealership will have some unclaimed property.  If you have never reported, the department simply encourages you to begin doing so as soon as possible voluntarily. Audit risk and liabilities can extend back ten years.  A few common examples include:

• Due Bills and Optional Equipment, Parts and Services

• Vehicle Deposits

• Referral Fees

• Credit Life Premium Refunds

• Accounts Payable/Accounts Receivable (Credit Balance)

• Payroll (final wages or commissions)

More information can be found on their web site at the following:

www.greatcopayback.com  See “Holder Information” on the top menu bar for more specific information on reporting requirements. There are electronic reporting options, forms and free software that is available for tracking purposes.    

CADA has training materials available for purchase on this topic from prior training classes conducted by state auditors. CLICK HERE to view the table of contents for this section; materials are $40. Contact frontdesk@cadaonline.org to order. 

NOTE:  You should check the web site above for any unclaimed property that may be due to you individually or to your dealership!!!

* * * * * * * * *

Since the filing of two class actions against several Colorado dealerships alleging that D & H charges constitute the “unauthorized practice of law” and violate the Truth in Lending Act, as well as Uniform Consumer Credit Code (UCCC), both cases have been proceeding slowly through the court system.  

• Originally filed in state court, both cases were removed to federal court in Denver and various motions were filed by the parties.

• In October, one of the federal cases was sent back to state court and will now be heard by a state court judge in Adams County. The TILA and UCCC claims were dismissed. There had been some limited discovery in that case, but it will be some time before the case actually goes to trial.  

• The other case remains in federal court, and the judge is now considering whether to dismiss three of the claims, leaving only one claim pending (alleged violation of TILA). In addition, the judge is also considering whether to dismiss one of the two defendant entities in the case. 

• No trial dates have been scheduled in either case. 

CADA will continue to monitor these cases and provide updates periodically. To date, no other cases have been filed against other Colorado dealers. Colorado dealers are reminded that it is their choice as to whether or not they charge D & H. However, if a dealer does so, D & H must be charged on all deals—cash as well as credit. Dealers are encouraged to consult with their attorneys concerning the use of D&H and related disclosures.

CLICK HERE to review prior Open Road articles and information on D&H fees and litigation.   

  ----------------------------------------------------------------------------------------------------------------------