Date: 04/06/2010
Final
Presentation by Department of Revenue
HOUSE COMMITTEE ON FINANCE
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9:59 AM -- Presentation by Department of Revenue
The meeting was called to order.
Mr. Richard Giardini, representing the Colorado Department of Revenue, began his presentation on the property tax, rent, and heat rebate program. He distributed a handout about the program (Attachment A) as well as a copy of the form that residents use to apply for the rebates (Attachment B). Committee members also received information from the department's 2010 annual report about the rebate program (Attachment C). In even-numbered years, Colorado law requires the House Finance Committee to review the program.
Mr. Giardini provided background and overview of the program. He explained that the program began in 1972 and provides property tax assistance to low income residents who are 55 years of age or older and surviving spouses aged 58 years and older. He also noted a heat rebate was added in 1980 and disabled individuals became eligible for the program in 1987. Mr. Giardini discussed statistics about the number of rebates issued and stated that there was a large decrease in the number of recipients in 2009. He noted that 26,000 rebates were issued to Colorado citizens in 2009. Mr. Giardini further stated that the requirement was created to review the program years ago due to inflation considerations, and he said the program is now indexed for inflation. Most applicants, he noted, will receive a constant amount each year. Mr. Giardini also discussed the legal presence requirement passed by the General Assembly in 2007 and discussed the department's efforts to ensure proper enforcement of the program. He also explained the property tax rebate, assistance for rent, and heating assistance.
10:05 AM
Mr. Giardini continued the presentation by discussing income levels of the rebates and poverty statistics. Mr. Giardini responded to committee questions about the program and the senior homestead exemption in the Colorado Constitution. Committee members asked what the impact would be if the department applied the funding for the senior exemption toward the program. He also responded to questions about poverty statistics from the federal government noted in Attachment A. Committee members also requested the department do an analysis on several issues related to the property tax rebate. Committee discussion continued.
10:11 AM
The committee continued discussing the property tax rebate program. Mr. Giardini responded to questions from the committee about the threshold for poverty and how the property tax rebate assists homeowners. The committee members also discussed Colorado Constitutional provisions that relate to property taxes. Mr. Giardini explained that it is difficult for the department to track the income information of different taxpayers.
10:15 AM
The committee continued its discussion about the senior property tax exemption and the rebate program. Mr. Giardini responded to additional questions about potential fraud and qualifications for the program. The committee also discussed the administrative costs of the program, and Mr. Giardini stated he did not know. He also explained that the current application form has been simplified from prior years.
10:20 AM
Committee members continued discussing the program and its effectiveness and the senior property tax exemption. Mr. Giardini also explained that an individual must be legally present in Colorado and that the department must use the driver license and other information to verify this information.