Bill Summary for Bill Number HB10-1087

Date: 02/10/2010

Final
BILL SUMMARY for HB10-1087

HOUSE COMMITTEE ON FINANCE

Votes: View-->	Action Taken:
Moved amendment L.002. The motion passed on a 9-2 Moved amendment L.004. The motion passed on a 7-3 Moved to postpone House Bill 10-1087 indefinitely. Refer House Bill 10-1087, as amended, to the Commi	PASS PASS PASS FAIL

11:45 AM -- House Bill 10-1087 - Concerning the Elimination of the Requirement that an Employer Withhold Colorado Income Tax

Representative Swalm, prime sponsor, explained that House Bill 10-1087 eliminates the requirement that employers deduct and withhold Colorado income tax from an employee's wages starting January 1, 2011. Under the bill, withholding of state income tax from a worker's wages would only occur if the employee and employer voluntarily agree to it.

He continued by noting that individuals who stop having state income tax withheld would still generally be required to file annual tax returns and those with state income tax liabilities above $1,000 would be required to make quarterly estimated payments to the state due to provisions in current law.

Representative Swalm noted that initially, as the bill is written, it gives the employer the option to withhold. He continued by noting an amendment that would allow only the employee to opt out of the withholding requirement. Also, he spoke to a second amendment that would be triggered when an employer gets notice from the state that an employee has not paid income taxes, then the employer would continue to withhold.

Representative Swalm discussed the history of the income tax and the burden that it imposes on taxpayers in America. He noted that we had a system in the 1940s that allowed persons to make quarterly payments.

12:07 PM

The bill was placed on the table for action and Representative Swalm distributed amendments L.002 (Attachment B) and L.004 (Attachment C).


BILL:	HB10-1087
TIME:	12:08:09 PM
MOVED:	Swalm
MOTION:	Moved amendment L.004. The motion passed on a 7-3 vote.
SECONDED:	Roberts
		VOTE
	DelGrosso	Yes
	Frangas	No
	Gerou	Yes
	Kagan	Yes
	Kefalas	No
	Labuda	No
	Roberts	Yes
	Summers	Excused
	Swalm	Yes
	Benefield	Yes
	Judd	Yes

Not Final YES: 7 NO: 3 EXC: 1 ABS: 0 FINAL ACTION: PASS


BILL:	HB10-1087
TIME:	12:09:58 PM
MOVED:	Summers
MOTION:	Moved amendment L.002. The motion passed on a 9-2 vote.
SECONDED:	Roberts
		VOTE
	DelGrosso	Yes
	Frangas	Yes
	Gerou	Yes
	Kagan	Yes
	Kefalas	No
	Labuda	Yes
	Roberts	Yes
	Summers	Yes
	Swalm	Yes
	Benefield	Yes
	Judd	No

Not Final YES: 9 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS


BILL:	HB10-1087
TIME:	12:12:02 PM
MOVED:	Swalm
MOTION:	Refer House Bill 10-1087, as amended, to the Committee on Appropriations. The motion failed on a 3-8 vote.
SECONDED:	Gerou
		VOTE
	DelGrosso	No
	Frangas	No
	Gerou	Yes
	Kagan	No
	Kefalas	No
	Labuda	No
	Roberts	No
	Summers	Yes
	Swalm	Yes
	Benefield	No
	Judd	No

Not Final YES: 3 NO: 8 EXC: 0 ABS: 0 FINAL ACTION: FAIL


BILL:	HB10-1087
TIME:	12:28:08 PM
MOVED:	Benefield
MOTION:	Moved to postpone House Bill 10-1087 indefinitely. The motion passed on a 6-5 vote.
SECONDED:	Labuda
		VOTE
	DelGrosso	No
	Frangas	Yes
	Gerou	No
	Kagan	Yes
	Kefalas	Yes
	Labuda	Yes
	Roberts	No
	Summers	No
	Swalm	No
	Benefield	Yes
	Judd	Yes

Final YES: 6 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: PASS

12:28 PM

Recess.