{"id":14403,"date":"2025-02-20T22:11:16","date_gmt":"2025-02-20T22:11:16","guid":{"rendered":"https:\/\/taxops.com\/?p=14403"},"modified":"2025-02-26T23:30:44","modified_gmt":"2025-02-26T23:30:44","slug":"2025-top-ten-state-and-local-tax-issues-to-watch","status":"publish","type":"post","link":"https:\/\/taxops.com\/2025-top-ten-state-and-local-tax-issues-to-watch\/","title":{"rendered":"2025 Top Ten State and Local Tax Issues to Watch"},"content":{"rendered":"\n<div style=\"height:41px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><em><em><em>Our latest top ten list of state and local tax (SALT) issues to watch is out for 2025! From evolving economic nexus rules to increased state tax enforcement, discover key developments shaping the SALT landscape this year.<\/em><\/em><\/em> <\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">By the <a href=\"https:\/\/taxops.com\/state-and-local-tax\/\" target=\"_blank\" rel=\"noopener\" title=\"SALTovation Team at TaxOps\">SALTovation Team at TaxOps<\/a><\/p>\n\n\n\n<div class=\"wp-block-media-text is-stacked-on-mobile\" style=\"grid-template-columns:43% auto\"><figure class=\"wp-block-media-text__media\"><img decoding=\"async\" width=\"576\" height=\"1024\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/yH5BAEAAAAALAAAAAABAAEAAAIBRAA7\" data-src=\"https:\/\/taxops.com\/wp-content\/uploads\/2025\/02\/2025-State-and-Local-Tax-Top-Ten-Trends-to-Watch-FINAL-1-576x1024.png\" alt=\"\" class=\"wp-image-14428 size-full lazyload\"\/><noscript><img decoding=\"async\" width=\"576\" height=\"1024\" src=\"https:\/\/taxops.com\/wp-content\/uploads\/2025\/02\/2025-State-and-Local-Tax-Top-Ten-Trends-to-Watch-FINAL-1-576x1024.png\" alt=\"\" class=\"wp-image-14428 size-full lazyload\"\/><\/noscript><\/figure><div class=\"wp-block-media-text__content\">\n<p class=\"wp-block-paragraph\">Once again, the <a href=\"https:\/\/taxops.com\/state-and-local-tax\/\" target=\"_blank\" rel=\"noopener\" title=\"SALTovation team at TaxOps\">SALTovation team at TaxOps<\/a> has released their top ten list of issues to watch in state and local tax. The list presents both challenges and opportunities in the year ahead for business taxpayers and tax practitioners. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">From evolving economic nexus rules to increased state tax enforcement, discover the key developments shaping the tax landscape in SALT.\u00a0The list of active SALT issues in 2025 is so long, we even snuck in two honorable mentions! Take a look.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>1. Murky Tax Outlook under Trump Administration<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Key provisions from the Tax Cuts and Jobs Act (TCJA) are set to sunset, including pass-through entity elections, the SALT cap, and Section 174. Will these changes stick or be extended?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Trump administration&#8217;s actions make it hard to predict whether these changes will sunset or be extended. There&#8217;s hope that Section 174, which is not business-friendly, might go away, but it&#8217;s challenging to say for sure.<\/p>\n<\/div><\/div>\n\n\n\n<div style=\"height:31px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>2. Taxpayer Defense and Chevron<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The 2024 overturning of Chevron releases courts from deferring to federal agency interpretations of ambiguous statutes. This ruling could (and should) impact state court challenges, giving taxpayers a fighting chance to combat state tax authority overreach in states where deference is no longer the guiding principle in court. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The overturning of Chevron could provide taxpayers with a stronger defense against state tax authority overreach. However, it&#8217;s a wait-and-see situation to understand how states will react to this change.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>3. Public Law 86-272 Protections Championed at State-Level<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The pendulum on state overreach has swung too far with Public Law 86-272, and challengers have traction in California and other states that are seeking to undermine federal protections against double-taxation. Keep an eye on this one!<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">New Jersey and New York have passed rules based on the revised statement from the MTC, while California&#8217;s attempt was unsuccessful due to procedural issues. Taxpayers need to review their website interactivity to ensure compliance with PL 86-272 protections, especially in New Jersey and New York.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>4. Caution: Sales Tax Automation Boom<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The market for sales tax automation is expanding rapidly with new market players and a host of confusing terms and pricing schemes. Buyer beware!<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Understanding the limitations and capabilities of sales tax automation software is crucial. Buyers should be aware of potential issues such as differences between collected and expected tax, correct taxability answers, and the ability to handle local taxes. It&#8217;s important to choose a solution that fits the specific needs of the business.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>5. State Tax Enforcement<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">States are ramping up enforcement efforts, targeting sales tax licensed entities and expanding the tax base through nexus notices. Have you thought about what getting a sales tax or payroll license means for other tax types and your tax obligations?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Post-COVID, states have more resources and are increasing audit activities. Taxpayers need to be aware that obtaining a payroll or sales tax license can trigger nexus for other tax types, making it essential to ensure all necessary filings are in place to avoid issues with state tax authorities.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>6. Economic Nexus Evolving<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">States are ditching the transaction test for economic nexus in favor of a single sales volume threshold. This shift is a silver lining for remote sellers, as they no longer need to track transaction counts or trigger nexus without sufficient dollar sales into certain jurisdictions that have made the switch.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The move away from the transaction test reduces administrative burdens for small sellers. There is hope that states will also align their income tax thresholds with sales tax thresholds to simplify compliance further.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>7. Expansion of Delivery Fees, Short-Term Rental Taxes, and Other Gotchas<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Delivery fees and taxes on the short-term rental industry are on the rise. States like these types of new regulations and fees capture revenue outside pure income, franchise, or sales and use taxes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">States are creatively raising revenue through fees that resemble taxes. While these fees serve purposes like infrastructure maintenance, they also act as additional revenue sources. Short-term rental taxes, for example, operate similarly to sales taxes but are categorized differently.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>8. Colorado SUTS Activation<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Nearly all home rule jurisdictions are on board with Colorado&#8217;s Sales and Use Tax System (SUTS). Are you ready for enforcement?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Get compliant with the SUTS system, as Colorado&#8217;s home rule jurisdictions are actively pursuing businesses for compliance. Taxpayers should be proactive in understanding and meeting their obligations to avoid enforcement actions.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>9. Illinois Remote Sales Tax Challenges<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Illinois\u2019 return is starting to look like Colorado\u2019s \u2013 long and difficult, in part due to scrutiny over Illinois&#8217; remote sales tax rules for being discriminatory. As of January 1, 2025, all sellers must adhere to destination sourcing, leveling the playing field for in state and out-of-state taxpayers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">While the new rules bring consistency, the complexity of filing returns in Illinois remains a challenge due to the numerous jurisdictions. Taxpayers need to ensure their tax collection software is updated to handle the full rates.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>10. Gross Receipts Tax Changes<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Once the darling of states, gross receipts taxes are getting a second look, signaling potential tax relief. Ohio is considering eliminating its Commercial Activity Tax (CAT), while Oregon&#8217;s surcharge failed. Legislators take note: gross receipts are a poor tax-raising strategy.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Many states are moving away from gross receipts taxes due to their complexity and unpopularity. Ohio is considering eliminating its CAT, and Oregon&#8217;s attempt to add a surcharge failed, indicating a shift in how these taxes are perceived and how the states approach revenue generation.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Honorable Mentions<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">With so many state and local tax issues ahead, we had to add two more honorable mentions.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Combined Reporting Changes on the Horizon.<\/strong> Colorado and South Carolina enacted significant changes to their standards governing combined reporting filings. The District of Columbia adopted the Finnigan method of apportionment for combined reporting.<\/li>\n\n\n\n<li><strong>Online Portal Overhauls.<\/strong>&nbsp;Good news for taxpayers continues! States like Kentucky, Ohio, and Nevada are updating their online tax portals, making it easier for businesses to manage their tax obligations. These improvements aim to streamline the filing process but there could be growing pains.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">These topics are sure to keep tax professionals on their toes in 2025. Be prepared for what&#8217;s to come. Reach out to your <a href=\"https:\/\/taxops.com\/contact\/\" target=\"_blank\" rel=\"noopener\" title=\"TaxOps Advisor\">TaxOps Advisor<\/a> with questions or concerns. <\/p>\n\n\n\n<div style=\"height:58px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-fe48e5de wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/taxops.com\/contact\/\">Talk to a Business Tax Advocate<\/a><\/div>\n<\/div>\n\n\n\n<div style=\"height:58px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">Engage TaxOps for SALT Compliance<\/h3>\n\n\n\n<div style=\"height:58px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-media-text is-stacked-on-mobile\"><figure class=\"wp-block-media-text__media\"><img decoding=\"async\" width=\"1024\" height=\"576\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/yH5BAEAAAAALAAAAAABAAEAAAIBRAA7\" data-src=\"https:\/\/taxops.com\/wp-content\/uploads\/2025\/02\/Work-with-TaxOps-SALTovation-1024x576.png\" alt=\"\" class=\"wp-image-14398 size-full lazyload\" data-srcset=\"https:\/\/taxops.com\/wp-content\/uploads\/2025\/02\/Work-with-TaxOps-SALTovation-980x551.png 980w, https:\/\/taxops.com\/wp-content\/uploads\/2025\/02\/Work-with-TaxOps-SALTovation-480x270.png 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1024px, 100vw\" \/><noscript><img decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/taxops.com\/wp-content\/uploads\/2025\/02\/Work-with-TaxOps-SALTovation-1024x576.png\" alt=\"\" class=\"wp-image-14398 size-full lazyload\" srcset=\"https:\/\/taxops.com\/wp-content\/uploads\/2025\/02\/Work-with-TaxOps-SALTovation-980x551.png 980w, https:\/\/taxops.com\/wp-content\/uploads\/2025\/02\/Work-with-TaxOps-SALTovation-480x270.png 480w\" sizes=\"(min-width: 0px) and (max-width: 480px) 480px, (min-width: 481px) and (max-width: 980px) 980px, (min-width: 981px) 1024px, 100vw\" \/><\/noscript><\/figure><div class=\"wp-block-media-text__content\">\n<p class=\"wp-block-paragraph\">The road to state and local tax compliance<br>typically starts with a nexus study. This is a<br>detailed analysis of your business activities and<br>attributes to determine your business sales and<br>services footprint by state and tax jurisdiction.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With a nexus study in hand, we can provide you<br>with recommendations and clear strategies for<br>remediation, expert guidance on state and local<br>tax filings, and insights on leveraging technology<br>for managing compliance. Reach out now.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n<\/div><\/div>\n\n\n\n<div style=\"height:57px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div style=\"height:53px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">Read more<\/h2>\n\n\n<ul class=\"wp-block-latest-posts__list wp-block-latest-posts\"><li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/taxops.com\/auditor-independence-in-the-age-of-private-equity\/\">Auditor Independence in the Age of Private Equity: What CFOs Need to Know<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/taxops.com\/r-d-credits-for-software-companies\/\">R&amp;D Credits for Software Companies: Scrum Teams, Qualifiers, and Section 174 After OBBBA<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/taxops.com\/section-174-decoupling-what-tax-pros-need-to-know-state-by-state\/\">Section 174 Decoupling: What Tax Pros Need To Know State By State<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/taxops.com\/sean-espy-new-partner\/\">TaxOps Welcomes Sean Espy as Partner, Tax Minimization<\/a><\/li>\n<li><a class=\"wp-block-latest-posts__post-title\" href=\"https:\/\/taxops.com\/state-nexus-demystified-navigating-tax-compliance-after-wayfair-episode-1-2\/\">Your Tax Footprint Is Probably Bigger Than You Think: What Finance Leaders Need to Know About State Nexus<\/a><\/li>\n<\/ul>","protected":false},"excerpt":{"rendered":"<p>Our latest top ten list of state and local tax (SALT) issues to watch is out for 2025! From evolving economic nexus rules to increased state tax enforcement, discover key developments shaping the SALT landscape this year. By the SALTovation Team at TaxOps Once again, the SALTovation team at TaxOps has released their top ten [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":14427,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"off","_et_pb_old_content":"<!-- wp:spacer {\"height\":\"41px\"} -->\n<div style=\"height:41px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<!-- \/wp:spacer -->\n\n<!-- wp:image {\"id\":14221,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<figure class=\"wp-block-image size-large\"><img src=\"https:\/\/taxops.com\/wp-content\/uploads\/2025\/01\/2025-Colorado-State-and-Local-Tax-Legislation-1024x576.png\" alt=\"\" class=\"wp-image-14221\"\/><\/figure>\n<!-- \/wp:image -->\n\n<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\"><!-- wp:paragraph {\"align\":\"center\"} -->\n<p class=\"has-text-align-center\"><em>Judy Vorndran, lead partner of state and local tax at TaxOps, testified before the Colorado Senate Finance Committee on January 28, 2025. She addressed SB25-018 and SB25-046, proposed legislation that would create a searchable database and enhance audit confidentiality. Below is a summary of her remarks<\/em>.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph {\"align\":\"center\"} -->\n<p class=\"has-text-align-center\"><em>Following testimony and discussion, the Finance Committee unanimously passed both bills. SB25-018 now moves to the Committee on Appropriations while SB25-046, as amended, has been referred to the full Senate and placed on the Senate consent calendar.<\/em> <\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph {\"align\":\"center\"} -->\n<p class=\"has-text-align-center\"><em>\"It was an amazing experience to look in all of their faces and explain why these laws make Colorado more competitive and are good for both government and taxpayers<\/em>,\"<em>  ~ Judy Vorndran <\/em><\/p>\n<!-- \/wp:paragraph --><\/blockquote>\n<!-- \/wp:quote -->\n\n<!-- wp:group {\"layout\":{\"type\":\"constrained\"}} -->\n<div class=\"wp-block-group\"><!-- wp:spacer {\"height\":\"34px\"} -->\n<div style=\"height:34px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<!-- \/wp:spacer -->\n\n<!-- wp:heading {\"textAlign\":\"center\"} -->\n<h2 class=\"wp-block-heading has-text-align-center\">Testimony on SB25-018, Online Search of Sales and Use Tax, and SB25-046, Local Government Tax Audit Confidentiality Standards<\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:spacer {\"height\":\"42px\"} -->\n<div style=\"height:42px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<!-- \/wp:spacer --><\/div>\n<!-- \/wp:group -->\n\n<!-- wp:paragraph -->\n<p>Good afternoon, members of the <a href=\"https:\/\/leg.colorado.gov\/committees\/finance\/2024-regular-session\" target=\"_blank\" rel=\"noopener\" title=\"Senate Finance Committee\">Senate Finance Committee<\/a>. My name is <a href=\"https:\/\/taxops.com\/judith-vorndran\/\" target=\"_blank\" rel=\"noopener\" title=\"Judy Vorndran\">Judy Vorndran<\/a>. I am a partner in the tax specialty firm TaxOps and a member of the &nbsp;Sales and Use Tax Simplification Task Force.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>I am here to testify in support of two bills, SB25-018 and SB25-046. A summary of my statement follows.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:spacer {\"height\":\"43px\"} -->\n<div style=\"height:43px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<!-- \/wp:spacer -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3 class=\"wp-block-heading\">SB25-018, Online Search of Sales and Use Tax<\/h3>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>SB25-018 aims to create a searchable database for sales and use tax licenses and exemption certificates. This bill is crucial for improving transparency and compliance in our tax system.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3 class=\"wp-block-heading\">Key Points<\/h3>\n<!-- \/wp:heading -->\n\n<!-- wp:list -->\n<ul class=\"wp-block-list\"><!-- wp:list-item -->\n<li><strong>Importance of a Searchable Database:<\/strong><\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>SB25-018 proposes the creation of a database at the state and department of revenue level, allowing taxpayers to look up licenses and entities.<\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li><strong>Benefits for Taxpayers:<\/strong><ol><li>Having access to a searchable database would be a significant advantage for taxpayers. It would help them ensure that vendors are properly licensed and collecting the correct tax amounts.<\/li><\/ol><!-- wp:list {\"ordered\":true} -->\n<ol class=\"wp-block-list\"><!-- wp:list-item -->\n<li>This measure would also align Colorado with other states, such as Texas, which already have similar databases in place. These databases have proven to be extremely helpful for taxpayers in those states.<\/li>\n<!-- \/wp:list-item --><\/ol>\n<!-- \/wp:list --><\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li><strong>Improved Compliance:<\/strong><!-- wp:list {\"ordered\":true} -->\n<ol class=\"wp-block-list\"><!-- wp:list-item -->\n<li>The searchable database would facilitate better compliance with tax laws. Taxpayers would be able to verify the status of vendors and themselves, reducing the risk of errors and ensuring accurate tax collection.<\/li>\n<!-- \/wp:list-item --><\/ol>\n<!-- \/wp:list --><\/li>\n<!-- \/wp:list-item --><\/ul>\n<!-- \/wp:list -->\n\n<!-- wp:paragraph -->\n<p>SB25-018 is a vital step towards enhancing transparency and compliance in Colorado's tax system. I urge the Committee to support this bill and help create a more efficient and taxpayer-friendly environment.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:spacer {\"height\":\"46px\"} -->\n<div style=\"height:46px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<!-- \/wp:spacer -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3 class=\"wp-block-heading\">SB25-046, Local Government Tax Audit Confidentiality Standards<\/h3>\n<!-- \/wp:heading -->\n\n<!-- wp:paragraph -->\n<p>SB25-046 addresses the confidentiality standards for local government sales or use tax audits. This bill would both protect taxpayer information and ensure fairer audit practices.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3 class=\"wp-block-heading\">Key Points<\/h3>\n<!-- \/wp:heading -->\n\n<!-- wp:list {\"ordered\":true} -->\n<ol class=\"wp-block-list\"><!-- wp:list-item -->\n<li>Confidentiality Concerns:<ol><li>SB25-046 aims to establish uniform confidentiality standards for local government tax audits. This is important because third-party auditors often conduct these audits, and there are concerns about how taxpayer information is handled and shared.<\/li><\/ol><!-- wp:list {\"ordered\":true} -->\n<ol class=\"wp-block-list\"><!-- wp:list-item -->\n<li>Currently, third-party auditors are not always licensed professionals, and there is no regulation ensuring their confidentiality practices. This raises significant concerns about the protection of sensitive taxpayer information.<\/li>\n<!-- \/wp:list-item --><\/ol>\n<!-- \/wp:list --><\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Issues with Third-Party Auditors:<ol><li>Many home-rule cities do not have captive auditors and rely on third-party auditors who may conduct audits on behalf of multiple jurisdictions. This can lead to inefficiencies and increased taxpayer burdens.<\/li><\/ol><!-- wp:list {\"ordered\":true} -->\n<ol class=\"wp-block-list\"><!-- wp:list-item -->\n<li>There are instances where third-party auditors may target large taxpayers, leading to multiple audits across different cities. This practice is also burdensome and raises concerns about the confidentiality of taxpayer information.<\/li>\n<!-- \/wp:list-item --><\/ol>\n<!-- \/wp:list --><\/li>\n<!-- \/wp:list-item -->\n\n<!-- wp:list-item -->\n<li>Need for Regulation:<ol><li>There is a need for stricter regulation and oversight of third-party auditors to ensure they adhere to uniform confidentiality standards. This includes establishing ethical and fiduciary duties similar to those required of licensed professionals.<\/li><\/ol><!-- wp:list {\"ordered\":true} -->\n<ol class=\"wp-block-list\"><!-- wp:list-item -->\n<li>The bill also highlights the importance of transparency in the contracts between cities and third-party auditors. These contracts should be subject to public scrutiny to ensure accountability.<\/li>\n<!-- \/wp:list-item --><\/ol>\n<!-- \/wp:list --><\/li>\n<!-- \/wp:list-item --><\/ol>\n<!-- \/wp:list -->\n\n<!-- wp:paragraph -->\n<p>SB25-046 is essential for protecting taxpayer information and ensuring fair audit practices. I urge the Finance Committee to support this bill and help create a more transparent and accountable audit process. <\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>I would be happy to answer related questions you may have, and I thank you for the opportunity to weigh in on these important pieces of legislation.<\/p>\n<!-- \/wp:paragraph -->\n\n<!-- wp:spacer {\"height\":\"57px\"} -->\n<div style=\"height:57px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<!-- \/wp:spacer -->\n\n<!-- wp:buttons {\"layout\":{\"type\":\"flex\",\"justifyContent\":\"center\"}} -->\n<div class=\"wp-block-buttons\"><!-- wp:button -->\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/taxops.com\/contact\/\">Talk to a Business Tax Advocate<\/a><\/div>\n<!-- \/wp:button --><\/div>\n<!-- \/wp:buttons -->\n\n<!-- wp:spacer {\"height\":\"53px\"} -->\n<div style=\"height:53px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<!-- \/wp:spacer -->\n\n<!-- wp:separator -->\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n<!-- \/wp:separator -->\n\n<!-- wp:heading -->\n<h2 class=\"wp-block-heading\">Read more<\/h2>\n<!-- \/wp:heading -->\n\n<!-- wp:latest-posts \/-->","_et_gb_content_width":"","spt_transcript":"","footnotes":""},"categories":[229,226],"tags":[252,1145,284,12,1144,1158,126,26,265,1135,492,1134,18,19,316,1136,30,810,101,799,605,262,79,267,620,80,712,1138,1137,74],"class_list":["post-14403","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-state-and-local","category-tax-news","tag-accountant","tag-advocate","tag-cfo","tag-colorado","tag-colorado-society-of-cpa","tag-continuous-education","tag-cpa","tag-cpe","tag-finance-professional","tag-iaas","tag-leadership","tag-saas","tag-sales-and-use-tax","tag-sales-tax","tag-salt","tag-software-providers","tag-state-and-local-tax","tag-state-income-tax","tag-state-tax","tag-tax-advisor","tag-tax-automation","tag-tax-planning","tag-tax-preparer","tag-tax-professional","tag-tax-professionals","tag-tax-provider","tag-tax-school","tag-tax-tools","tag-tax-vendors","tag-taxops"],"aioseo_notices":[],"jetpack_featured_media_url":"https:\/\/taxops.com\/wp-content\/uploads\/2025\/02\/2025-top-ten-salt-header-FINAL.png","_links":{"self":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts\/14403","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/comments?post=14403"}],"version-history":[{"count":15,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts\/14403\/revisions"}],"predecessor-version":[{"id":14435,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/posts\/14403\/revisions\/14435"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/media\/14427"}],"wp:attachment":[{"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/media?parent=14403"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/categories?post=14403"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/taxops.com\/wp-json\/wp\/v2\/tags?post=14403"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}