BILL SUMMARY for HB09-1265
SENATE COMMITTEE ON FINANCE
|Votes: View--> ||Action Taken: |
|Refer House Bill 09-1265 to the Committee of the W||PASS|
10:42 AM -- House Bill 09-1265
Senator King, prime sponsor, presented House Bill 09-1265. This bill would limit the number of years a tax abatement refund for nonprofit entities can include interest to two years. Under current law, a property tax abatement is given to certain nonprofit organizations, and when a taxing authority collects property taxes that are not actually owed, an interest refund may be awarded. Senator King explained that in some instances interest payments for tax overpayment of property taxes by nonprofit organizations have been significant, and this can cause financial strain for local jurisdictions.
The following persons testified on the bill:
10:44 AM -- Mr. John Lefebvre, representing the Colorado County Treasurers Association, testified in support of the bill. He stated that in most tax cases, the period of time for interest on abatement cases is two years. He explained that in some counties, interest being paid for property tax overpayments is greater than the revenue the entity receives. He also explained that paying these back taxes has resulted in a high cost for several school districts. He stated nonprofit entities should be on the same playing field.
Mr. Lefebvre responded to questions from the committee about nonprofit tax issues. Discussion ensued about the amount of abatement that has resulted. He provided examples to the committee about tax abatements. Discussion also ensued the type of nonprofit that is benefiting from these abatements.
Senator King also discussed property tax impacts and tax abatement issues. Discussion ensued about the period of time that it takes to resolve tax abatement issues. Mr. Lefebvre further responded to questions from the committee about the amount of interest that local governments may pay to taxpayers.
10:57 AM -- Mr. Chris Mendez, representing Colorado Counties Inc., testified in support of the bill. He explained that the bill would not change the ability of an entity to gain nonprofit status, and that counties face difficult budgeting issues.
Senator Sandoval closed public testimony.
|TIME: || 11:00:28 AM|
|MOTION:||Refer House Bill 09-1265 to the Committee of the Whole with a recommendation that it be placed on the consent calendar. The motion passed 7-0.|
Final YES: 7 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS
The committee recessed.