Date: 04/22/2009

Final
BILL SUMMARY for HB09-1360

HOUSE COMMITTEE ON FINANCE

Votes: View--> Action Taken:
Refer House Bill 09-1360 to the Committee of the WPASS



07:40 PM -- House Bill 09-1360 - Concerning the Residential Assessment Rate

Representative Judd, prime sponsor, distributed a handout on the estimated residential assessment rate (RAR) from the Department of Local Affairs (Attachment H). He continued by explaining that the recent study calculated by the Division of Property taxation found that the final RAR is 8.85 percent for 2009-2010. By leaving the RAR at 7.96, the state will pay an additional $100 million in backfill money under the School Finance Act. Representative Judd discussed the TABOR prohibition on raising the RAR and discussed the conflict with the Gallagher Amendment by not adjusting the RAR upward to 8.85 percent.

09HouseFin0422AttachH.pdf

The committee discussion continued as Representative Judd discussed the link between the severance tax District Court case, the Colorado Attorney General Office memorandum on the District Court Case, and the result of leaving the RAR at 7.96 percent.

The following person testified:

07:49 PM -- Ms. JoAnn Groff, State Property Tax Administrator, responded to committee questions and commented on the RAR study. The rate estimated in the study is set at 8.85 percent and will require an additional $100 million in state backfill. Ms. Groff continued by saying that there is an additional $200 million impact in terms of less property taxes that affects other taxing jurisdictions. This is the effect of not changing the 7.96 RAR rate under TABOR.

The committee commented on the Supreme Court's opinion in Ritter vs. Mesa County and discussed past precedent. The committee discussed the shift under Gallagher from keeping the RAR at 7.96 and whether there is an economic impact assessment of retaining the 7.96 percent RAR. The committee continued to discuss the RAR rate and noted that retaining the lower RAR means that commercial properties will pay more in property taxes.

The following person testified:

08:08 PM -- Ms. Natalie Mullis, Chief Economist, Legislative Council Staff, noted that the RAR is incorporated into the forecast.


08:09 PM
BILL:HB09-1360
TIME: 08:09:33 PM
MOVED:Judd
MOTION:Refer House Bill 09-1360 to the Committee of the Whole. The motion passed on a 11-0 vote.
SECONDED:Lambert
VOTE
Apuan
Yes
Benefield
Yes
Gerou
Yes
Kefalas
Yes
Kerr A.
Yes
Lambert
Yes
Roberts
Yes
Summers
Yes
Swalm
Yes
Frangas
Yes
Judd
Yes
Final YES: 11 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS



08:10 PM

Adjourn.