Pete Meersman is fed up. As CEO of the Colorado Restaurant Association, he’s advising his 5,000 member restaurants not to pay state sales tax on free or reduced-cost employee mealsalso known as “shift meals.”
“We believe the Department of Revenue is collecting the sales tax illegally,” said Meersman, who is backing Senate Bill 121 to clear up the language of a 1978 Colorado law, sponsored by former state lawmaker and former U.S. Rep. Joel Hefley, that exempted employee meals from state sales tax.
“My intentions were to exempt all restaurant employee meals period!” Hefley said in an e-mail to Meersman. “There was never any thought of this being part of the paycheck stub.”
SB 121, sponsored by Sen. Al White, R-Hayden, makes it clear that free or reduced-charge employee meals are considered part of an employee’s wages and therefore do not need to be taxed.
As the Colorado Department of Revenue interprets the current law, employee meals must show up as a sales-taxable item or taxable as income on the employee’s W2 and paycheck stubs.
Meersman says the IRS specifically exempts employee meals from appearing on an employee’s pay stub.
Mark Couch, Department of Revenue spokesman, says restaurants are complying with paying sales tax on shift meals either voluntarily or as a result of an audit.
Meersman contends that only a handful of restaurants are voluntarily paying the sales tax unless they are audited. Can you spell f-o-o-d f-i-g-h-t?
Analysts at the state Capitol have also attached a “fiscal note” saying if the bill passes, $400,000 would be lost to the state for not collecting the tax.
Meersman says he doesn’t understand how there can be a cost to the state for taxes that should not be collected in the first place.
“The net effect is that employers may decide this is all too much trouble and no longer offer employee meals at reduced prices or free,” Meersman said. “They are essentially levying a sales tax on employee wages — it’s crazy.”
Ditched DA
When Gov. Bill Ritter accompanied his mom, Ethel Ritter, to the American Red Cross Breakfast of Champions on Friday at the Hyatt Regency Denver at Colorado Convention Center, he took the opportunity to publicly tease the 84-year-old, who was a Red Cross volunteer for 15 years.
“In 1993, Gov. (Roy) Romer told me on a Thursday he was going to appoint me as DA of Denver — my entree into public life,” the governor said. “I called my mother and asked her to come to the press conference. She said, ‘Sorry, this is my day to volunteer with the Red Cross.’
“I said, ‘But this is a pretty big day Mom, I’m getting appointed as DA. There’s going to be lots of media there covering this press conference.’ She said, ‘Well, good then. I’ll see it on TV because I’ll be with the Red Cross.’ ”
Trump touch?
Denver dweller Charles Lottimer is hoping that Donald Trump’s endorsement of a product he sells will pump up sales.
Lottimer is a Colorado representative for the ACN Videophone, which Trump will include in the challenge he gives contestants on NBC’s “The Apprentice” (8 p.m. Sunday).
The videophone, which shows real-time footage of you while you’re talking on the phone, connects to your computer and uses the Internet to function.
“You do have the option if you’re not dressed the way you want people to see you, you can turn off the camera,” Lottimer said.
Someone at ACN’s South Carolina HQ sent the phone to The Donald.
Tapas time
Zaidy’s downtown at 15th and Lawrence is adding tapas and Mediterranean meals to its already delish deli dishes. Zaidy’s Fusion Grill opens today featuring a remodeled look and a half-price happy hour from 4 to 7 p.m. daily.
Bumper crop
Seen on a bumper sticker on a Ford Escort in Fort Collins: “Work is for people who have jobs.”
Eavesdropping
on a woman: “I want to date an iPhone guy but marry a BlackBerry guy.”
Penny Parker’s column appears Tuesday, Thursday, Friday and Sunday. Listen to her on the Caplis and Silverman radio show between 4 and 5 p.m. Fridays on KHOW-AM (630). Call her at 303-954-5224 or e-mail pparker@denverpost.com.
