Date: 02/26/2009

Final
BILL SUMMARY for HB09-1219

SENATE COMMITTEE ON FINANCE

Votes: View--> Action Taken:
Refer House Bill 09-1219 to the Committee of the WPASS



10:23 AM -- House Bill 09-1219


Senator Sandoval, prime sponsor, presented House Bill 09-1219. This bill reduces the interest the Colorado Department of Revenue will pay on overpayments associated with corporate tax returns. The bill prohibits the payment of interest on overpayments of corporate income taxes that do not satisfy a bona fide estimate of tax liability. She explained that individual taxpayers are overpaying their taxes, which results in the state paying interest to these individuals from the date the tax is due. She stated this rate is prime rate plus 3 percent. Senator Sandoval stated DOR estimates that the agency is paying millions in interest for these tax overpayments.

Senator Sandoval responded to questions from the committee about the fiscal note.

The following person testified on the bill:

10:27 AM --
Mr. Phillip Horwitz, representing the Colorado Department of Revenue (DOR), responded to questions from the committee about how much interest the agency is paying to taxpayers and provided specific examples of tax overpayments. He stated that the agency has no way of knowing whether taxpayers are overpaying taxes on purpose. However, significant tax overpayments have resulted, he explained. He also explained that the department always has a burden of proof. Mr. Horwitz responded to additional questions about the burden of proof in these cases.


10:35 AM

Discussion ensued about the burden of proof, preponderance of evidence in these cases, and potential audit procedures. Discussion also ensued about lowering the interest rate for tax overpayments. Mr. Horwitz also responded to committee questions about potential litigation.


10:39 AM

Senator Hudak closed public testimony.
BILL:HB09-1219
TIME: 10:41:22 AM
MOVED:Sandoval
MOTION:Refer House Bill 09-1219 to the Committee of the Whole. The motion passed 5-1, with one excused.
SECONDED:
VOTE
Brophy
Yes
Heath
Excused
Isgar
Yes
King K.
Yes
Scheffel
No
Hudak
Yes
Sandoval
Yes
Final YES: 5 NO: 1 EXC: 1 ABS: 0 FINAL ACTION: PASS