March 7, 2007
Volume #1, Issue #10

     - Hybrids are Hot in Denver
     - USA Today Dealer Innovation
     - Automotive Career Month             
       Coming Soon

     - Doing the Amendment 41 Dance

     - Dealers Cannot Offer to Pay
       Consumer Taxes

     - Federal Excise Tax Refund
       Available to Dealers

     - Unclaimed Property Compliance

     - Upcoming Events for 2007


     - Denver Auto Outlook     
Stevinson Ford in Golden Closing

    Click here for Open Road archives.

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NEW LOCATION!  CADA's Amendment 41 Compliant Legislative Reception and Birthday Event is tomorrow; Click here for details...


“Denver a Hotbed for Hybrids” (Excerpt from The Denver Business Journal -
 February 26, 2007)

Denver ranks as a top market for hybrid vehicles, according to a study released Monday.


R.L. Polk & Co., which tracks auto sales, said Denver recorded 4,954 new hybrid registrations in 2006. Although that's only 1.9 percent of the hybrid volume in the United States, the figure was enough to rank Denver as No. 10. 


The first-place spot belonged to Los Angeles, where the 30,989 new hybrid registrations accounted for 12.2 percent of the total. California also was the top state for hybrid vehicles. 

Rounding out the top 10 were:

  • San Francisco

  • New York

  • Washington, D.C.

  • Boston

  • Chicago

  • Seattle

  • Philadelphia

  • San Diego


Hybrid vehicles accounted for about 1.5 percent of all new vehicle registrations in the United States last year, with the Toyota Prius the preferred hybrid.

* * * * * * *


Are you aware of a special dealership success story involving significant energy savings?   Nominate that dealer — yourself or someone else — for the USA Today Dealer Innovation Award!  


This year's award recognizes "green" dealerships that have implemented effective initiatives to save energy, reduce utility costs and help protect the environment. The deadline for nominations is March 12, so nominate yourself or someone else today!

Four winners will be chosen. One grand prize winner, selected from among them, will be honored at the Morgan Stanley Global Automotive Awards Dinner, April 4 in New York City. The dinner is held in conjunction with the New York International Auto Show. That winner will receive round-trip airfare for two to New York and hotel accommodations for two nights. All of the winners will be featured in a full-page ad in USA Today.


To nominate yourself or someone else, CLICK HERE to complete and submit the official nomination form.


To review a wealth of energy efficiency ideas designed for both existing dealerships and new   construction, see NADA's A Dealer Guide to EnergyStar: Putting Energy into Profits, mailed to all association members in 2006. For more information or to order additional copies, CLICK HERE.

* * * * * * *


Hosting an event as part of Automotive Career Month, which has been moved to April, is a great way to introduce young people and educators to the many career opportunities in dealerships.  You will want to plan on a date for your event and begin contacting schools now to make arrangements for the students.  To sign up and order a kit to help you set up and promote your event, visit and click on "Request an Event Kit."  NADA's all-new career DVD with testimonials, interviews, helpful tips for teachers and parents, and brochures, is also available from


In response to ATAE requests, NADA has produced edited versions of two videos: Take the Ride of Your Life (career video) and The First Century: 100 Years of America's Auto Dealerships.  Looping DVDs (for use at auto shows or other events), and broadcast-quality beta versions (for use with local TV stations) are available at no charge for ATAEs. For copies, please contact Deborah Hopkins ( or Pam Broberg


doing the amendment 41 dance


Bow to your corner and your partner…the Amendment 41 dance has begun. 
The delicate interplay between how to clarify the substantial flaws in Amendment 41,
while complying with the amendment’s plain language and avoiding violating the constitutional constraints has resulted in some delicate steps.


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

DEALER Q&A:  Colorado law prohibits dealers form offering to pay consumer taxes


QUESTION:  We would like to run an advertisement offering to pay all of the customer’s sales taxes on a certain vehicle:  “We will pay all your sales taxes!”  Are dealerships allowed to do that?



No, dealerships are prohibited from advertising or offering to assume, absorb or refund in any way a consumer’s sales or use taxes on a motor vehicle purchase. This is not part of the automobile industry-specific advertising regulations, but part of a statute that covers
all retailers.  Even though dealers and retailers have a duty to collect taxes on behalf of consumers, ultimately, these taxes are the obligation and liability of the consumer. 


Colorado Revised Statutes [C.R.S.] 39-26-108. Tax cannot be absorbed.

It is unlawful for any retailer to advertise or hold out or state to the public or to any customer, directly or indirectly, that the tax or any part thereof imposed by this part 1 will
be assumed or absorbed by the retailer or that it will not be added to the selling price of
the property sold or if added that it or any part thereof will be refunded. Any person violating any of the provisions of sections 39-26-105 to 39-26-113 is guilty of a misdemeanor. 


A similar provision applies to Use taxes in C.R.S. 39-26-204


If you have additional questions on this topic, please contact Tammi McCoy via email at or by phone at 303.282.1449.  


* * * * * * *


Colorado Automobile Dealers Association along with LB Telecom, LLC, our endorsed telecommunications company, would like to make all CADA members aware of a significant tax refund that your company may be entitled to on your 2006 tax return.


The Federal Excise Tax, which is a three percent tax on monthly charges for long distance, wireless, and other bundled telecom services, is finally going away.  Furthermore, businesses that used these services between February 28, 2003 and August 1, 2006 can request a full refund of the taxes paid, plus interest.  For many automobile dealers this could be a significant amount of money.


Additionally, as a CADA member, LB Telecom is always available to provide you with a FREE consultation to evaluate your current dealership telecommunications services—from Internet access and Web hosting to local and long distance phone services.  LB Telecom can evaluate your full range of telecommunications needs, review offerings and packages from various telecommunications providers, and find you the best deal possible.  


If you have questions about how to calculate or file for your Federal Excise Tax refund or to request a free evaluation and cost savings estimate, please call Lex Brown with LB Telecom, LLC at 720.214.0961 (Denver area), 866.200.2236 (toll-free) or


A friendly reminder that doing business with CADA endorsed companies helps support our other efforts on your behalf—from legislative advocacy to legal and regulatory support, membership events, and everything else we do for you.



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.


Date / Time*


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


Legislators and Auto Dealers Networking Reception / Tim Jackson Birthday Event


Thursday, March 8

5:30 to 8 pm

CADA's Dealer Mansion

290 E. Speer Blvd. (corner of Grant & Speer), Denver, CO

Denver Rotary Club Seminar on the latest technological innovations in the Auto Industry


Thursday, March 15 -


Denver Athletic Club
1325 Glenarm Place

  Click here for more info...


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)


denver auto outlook for first month of 2007

Check out auto sales for the beginning of 2007 from the Denver Auto Outlook,
a publication of the Metro Denver Automobile Dealers Association.


   Please CLICK HERE to read the full report.


* * * * * * *

stevinson ford in golden closing

As seen in the Rocky Mountain News on February 22, 2007.

The Stevinson Ford dealer in Golden is closing as the ailing automaker in Detroit
seeks to scale back its network of stores.


CLICK HERE to read the full story.


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


Copyright 2007 Colorado Automobile Dealers Association.  All Rights Reserved.