Presentation by Mr. Marostica
COMMITTEE ON JOINT FINANCE
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10:48 AM -- Presentation by Mr. Marostica
Mr. Dan Marostica, Office of Economic Development and International Trade, began his presentation about economic development. He outlined the steps the office is taking, including reducing the business personal tax and investing in bioscience grants, among other things. He stated that as challenging as things are, Colorado is doing better than most other states, and Colorado has added jobs during this period.
Mr. Marostica explained that the Governor has proposed 13 tax policy changes that will save the state of Colorado over $134 million. He stated that having a job is a factor in quality of life. He stated that maintaining good jobs are a directive of the department. Mr. Marostica explained that tax incentives play a large role when companies are determining where they are going to locate. Without state tax credits, he stated Colorado would not have the ability to compete against other states for jobs that companies create when they locate here. He discussed the examples of businesses that located in Colorado, including Vestas and Charles Schwab.
Mr. Marostica also continued by providing background about Republic Airways' decision to locate in Milwaukee, and stated that Colorado will lose about 200 jobs. In the end, the company made their decision based on tax policy benefits in Milwaukee that Colorado did not have. Two companies decided to come to Colorado based on HB 09-1001, he said, and that if they hadn't gotten the tax credit they would not have located here. The companies must retain the jobs for over a year in order to receive the credit, he explained. He closed by sharing his thoughts about the state's budget.
Senator Brophy asked Mr. Marostica questions about removing agriculture incentives affecting pesticides and agriculture compounds. Senator Brophy shared his concerns about targeting agriculture. Discussion ensued about these issues. Representative Labuda asked if tax incentives usually exceed salaries paid to workers. Mr. Marostica stated he has not seen this occurrence. Representative Roberts asked about corporate tax credits for small businesses in Colorado. Mr. Marostica explained that companies are willing to move forward with investment capital because there is a good workforce and tax incentives.
Senator Romer shared his thoughts about the capital gains tax policy. He expressed his views about tax policy decisions and investing in higher education for the future.