Thursday November 6, 2014 0 comments
DENVER - The City and County of Denver has issued an updated tax guide that addresses the collection of sales and use tax on data processing programs, including software.
The new guide follows a series of meetings between government officials and local software industry leaders that addressed concerns about software tax collections.
"We did a lot of active listening and quickly discovered a lack of clarity in terms of tax issues related to software," said Mayor Michael Hancock. "Our culture of ingenuity provides people the opportunity to turn concepts into reality.
"This new guide gives a clearer picture for our software firms and business community, enabling them to continue their successful growth here in Denver."
With active participation by the city, the Colorado Technology Association convened town hall meetings with dialog focused on the lack of clarity evident in Denver's data processing tax code, largely due to a rapidly changing software industry over the past decade including cloud computing and app development services.
"These forums were incredibly productive, providing avenues for everyone to work together to increase our shared understanding," said Erik Mitisek, CTA CEO.
"The speed of the process, inclusiveness of the stakeholders and the collaborative spirit between the parties really exemplified the best of Denver."
"While the updated tax guide does not change the city's tax policy, it does provide a deeper understanding of the imposition of the city's sales and use tax on the purchase price or charge for data processing programs," said Cary Kennedy, Denver's CFO.
"The guide clarifies when a taxable event occurs, and it contains several new hypothetical software development examples."
CTA and city officials will host a town hall meeting on Nov. 17 to review the new tax guide, answer questions and discuss the future of software in Denver.
The meeting will be held at INDUSTRY, 3000 Brighton Rd., at 1:15 p.m.
The updated data processing tax guide is available at www.Denvergov.org/finance.