Date: 03/12/2009

Final
BILL SUMMARY for HB09-1110

SENATE COMMITTEE ON LOCAL GOVERNMENT AND ENERGY

Votes: View--> Action Taken:
Moved a conceptual amendment to prohibit a treasur
Moved HB 09-1110 to the Committee of the Whole, as
Pass Without Objection
PASS



10:07 AM -- House Bill 09-1110

Senator Gibbs, sponsor, described the provisions of HB 09-1110 that clarifies existing law by requiring owners of rental property to provide identifying information about their properties to county assessors. Under current law, personal property that is used to furnish residential rental property is subject to taxation. By December 1, 2009, and in each subsequent year, owners of furnished residential rental property or their agents must provide to assessors the property owner's name and address of the rental property.

The following persons testified on the bill:

10:10 AM --
Mark Chapin, Eagle County Assessor, spoke in support of the bill and responded to questions from the committee regarding the challenge of identifying taxable property and the type of properties that would be affected by this bill.

10:18 AM --
Bev Breakstone, Summit County Assessor, spoke in support of the bill and described the challenge of identifying taxable property used for vacation rentals. She explained that hotel owners are currently paying a disproportionate amount of the tax on rental properties. She estimated that a small portion of the 10,000 vacation properties in Colorado that are currently advertised on internet are paying the personal property tax.

10:28 AM --
Frank Celico, Attorney for Summit County, spoke in support of the bill and identified the types of personal property that are taxable under current law.

10:36 AM --
JoAnn Groff, Property Tax Administrator, Division of Property Taxation, explained that the business personal property tax is currently 29 percent of the assessed value of the property. She also explained that property that is rented fewer than 14 days is subject to the business personal property tax and identified the value of personal property that is exempt from the tax. She also explained how property owners who failed to notify the assessor about their personal property in prior tax years would be affected by the bill and whether they could be required to pay back taxes.

10:49 AM --
Patrick Boyle, Colorado Assessors' Association, spoke in support of the bill and explained how personal property is taxed under current law (Attachment A).

090312AttachA.pdf

10:53 AM --
Ms. Groff responded to questions from the committee about how certain types of personal property would be taxed under current law.

10:55 AM --
Chris Mendez, Colorado Counties, Inc., spoke in support of the bill.

10:57 AM --
Ms. Groff responded to questions from the committee regarding short term properties that are subject to the business personal property tax.

10:58 AM

Senator Gibbs closed his remarks on the bill.

11:03 AM

Ms. Groff responded to questions from the committee about the business personal property tax and the types of property that may be subject to it.

11:05 AM

Jason Gelender, drafter, Office of Legislative Legal Service, responded to questions from the committee about how to amend the bill to exempt owners from being required to pay back taxes if an assessor determines that the owner should have paid the personal property tax in prior years based on information provided by the owner in response to the bill.

BILL:HB09-1110
TIME: 11:05:55 AM
MOVED:Newell
MOTION:Moved a conceptual amendment to prohibit a treasurer from demanding payment for back taxes on personal property that is discovered as a result of an owner submitting information to the assessor as required by HB 09-1110. The motion passed without objection.
SECONDED:
VOTE
Cadman
Hodge
Kester
Lundberg
Newell
Foster
Schwartz
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:HB09-1110
TIME: 11:06:03 AM
MOVED:Newell
MOTION:Moved HB 09-1110 to the Committee of the Whole, as amended. The motion passed on a vote of 5-2.
SECONDED:
VOTE
Cadman
No
Hodge
Yes
Kester
Yes
Lundberg
No
Newell
Yes
Foster
Yes
Schwartz
Yes
Final YES: 5 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS