Date: 04/14/2010
Final
BILL SUMMARY for HB10-1169
HOUSE COMMITTEE ON FINANCE
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04:48 PM -- House Bill 10-1169 - Concerning Conservation Easements
The committee reconvened.
Representative McKinley, prime sponsor, briefly explained the provisions of the bill. The bill affects the Executive Director of the Department of Revenue's ability to contest an appraisal and credit claimed for a conservation easement donated prior to January 1, 2008. An exception is made for a valuation that has been disallowed by the Internal Revenue Service (IRS) on or before July 31, 2010, and an appraisal performed by an appraiser who is convicted of fraud. Public testimony began.
The following persons testified:
05:00 PM -- Mr. John Swartout, representing Colorado Coalition of Land Trusts, testified in opposition of the bill.
05:06 PM -- Ms. Jillane Hixson, representing herself, testified in support of the bill. Ms. Hixson discussed her family's experience and challenges after they created a conservation easement and had the donation challenged by the Colorado Department of Revenue. She explained many of the costs associated with the department's demand for recapture of the credit and noted that after six years of dispute, she settled her tax issue with the Internal Revenue Service.
05:21 PM -- Mr. Jim Butcher, representing his land development company, described his experience with the state program and testified in support of the bill. Mr. Butcher discussed the process of creating the easement and spoke to the easement's appraised value. He closed by discussing his challenges to settle his demand for recapture of the credits with the Department of Revenue.
05:52 PM -- Mr. Jim Walker, representing himself as an attorney who represented a number of taxpayers who donated easements, testified in support of the bill. He noted that nearly 100 clients have pending challenges for recapture by the Department of Revenue that have not yet been resolved. Mr. Walker closed by saying the core problem is valuation and the use of the income approach to value property for purposes of valuing a conservation easement.
05:57 PM -- Mr. Trevor Ellis, representing Ellis International Services, testified in support of the bill.
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06:07 PM -- Mr. Spencer Sprague, representing himself, testified in support of the bill and discussed appraisal techniques.
06:15 PM -- Mr. Ira Paulin, representing himself, testified in support of the legislation.
06:28 PM -- Mr. Howard Hallman, representing himself, testified in support of the bill and discussed the valuation of conservation easements.
06:31 PM -- Ms. Valerie Emick, representing herself, testified in support of the bill and discussed her experiences with conservation easements. She noted the costs that her family incurred by responding to letters of demand by the Department of Revenue.
06:46 PM -- Mr. Mark McDonald, representing himself, testified in support of the bill.
06:57 PM -- Ms. Deni Thompson, representing herself, testified in support of the bill and discussed the fiscal note.
07:01 PM -- Mr. Mark Couch, Department of Revenue, responded to committee questions. Mr. Couch noted that currently, the department is disputing $121 million in claims tied to conservation easements. Mr. Couch responded to questions about the ongoing disputes saying that the department may only resolve five denials per year. Mr. Couch responded to committee questions about the process saying that the department needs additional FTE to solve the disputed easement claims.
The committee engaged in a closing discussion about the funding in the long bill that will help address the backlog of disputed conservation easements. After a brief committee discussion, Representative Judd, Chairman, laid the bill over.
07:53 PM
Adjourn.