BILL SUMMARY for HB09-1093
SENATE COMMITTEE ON FINANCE
|Refer House Bill 09-1093 to the Committee of the W
The committee reconvened.
11:33 AM -- House Bill 09-1093
Senator Veiga, prime sponsor, presented House Bill 09-1093, legislation that establishes administrative and auditing measures to allow the Colorado Department of Revenue (DOR) to better comply with corporate income tax reporting requirements. The bill requires disclosure of reportable corporate transactions, and establishes penalties for failure to disclose these transactions. Senator Veiga explained that she has worked on the bill for several years, and that a similar bill was vetoed last year by the Governor. She stated that concerns about the proposal have been worked out by the business stakeholders. Senator Veiga responded to questions about the penalties in the bill.
The following witnesses testified on the bill:
11:38 AM -- Mr. Phillip Horwitz representing the DOR, testified about the bill. He stated that in many cases, corporate income taxpayers do not agree with the department on the taxes owed or on the exemptions that the corporation can include on their tax return. The bill, he stated, would taxpayers to report transactions on corporate income tax returns. Mr. Horwitz responded to questions about penalties for corporate taxpayers and the auditing process for these taxpayers.
Discussion continued about the penalties that are accessed to corporate income taxpayers after audits are conducted. Mr. Horwitz stated that taxpayers always have a right to protest a penalty that the business is assessed. He stated that the penalty established by the bill is for the failure to disclose and not for the taxes owed. Discussion ensued about whether the penalties are consistent with penalties imposed by the federal government and in other states. Discussion turned to why the department needs the information about corporate transactions if there may not be an underlying tax owed.
Discussion continued about the reporting requirements in the bill. Mr. Horwitz stated reporting requirements are also being debated in other states around the nation. He further said the Colorado Bar Association and other professionals have made comments about the bill. The committee also discussed if this bill is the same approach the Internal Revenue Service has taken to these tax issues.
11:58 AM -- Ms. Laura Oldright, representing the Colorado Center on Law and Policy, testified in support of the bill. She said the DOR has limited auditing resources and that the agency should be given all the resources it needs to ensure corporations pay the correct taxes.
Senator Sandoval closed public testimony.
| 12:03:03 PM
|Refer House Bill 09-1093 to the Committee of the Whole. The motion passed 6-1.
Final YES: 6 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS