Bill Summary for Bill Number HB10-1195

Date: 01/29/2010

Final
BILL SUMMARY for HB10-1195

HOUSE COMMITTEE ON FINANCE

Votes: View-->	Action Taken:
Moved amendment L. 007 (Attachment B). The motion Moved amendment L.002 (Attachment C). The motion Moved amendment L.008 (Attachment A). The motion Refer House Bill 10-1195, as amended, to the Commi	Pass Without Objection FAIL Pass Without Objection PASS

08:03 AM -- House Bill 10-1195 - Concerning the Sales and Use Tax Exemption for Agricultural Compounds

Representative Ferrandino, prime sponsor, explained the provisions of the bill. He explained that the bill temporarily suspends the sales and use tax exemption for the sale or storage, use, or consumption of agricultural compounds used in caring for livestock, semen for agricultural and ranching purposes, and pesticides for use in the production of agricultural and livestock products. The exemption is suspended through the end of FY 2012-13.

Representative Ferrandino noted that agricultural compounds include insecticides, fungicides, growth-regulating chemicals, enhancing compounds, hormones, and vaccines. They also include drugs, whether dispensed in accordance with a prescription or not, that are used for the prevention or treatment of disease or injury in livestock, and animal pharmaceuticals that have been approved by the Food and Drug Administration. He closed by noting that the bill does not apply to sales and use tax in any town, city, county, or special district unless the local jurisdiction expressly subjects such products to its sales tax.

The committee engaged in a discussion on the profitability of the agricultural industry in Colorado.

The following persons testified:

08:29 AM -- Mr. Troy Bredenkamp, Colorado Farm Bureau, testified in opposition toward the bill. He noted that only five states tax some of the items that are exempted from sales and use taxes in Colorado. This bill will put Colorado agricultural producers at a competitive disadvantage when compared to producers in other states. Mr. Bredenkamp noted that the bill would affect a farm operation's bottom line by imposing an extra $11,000 in taxes per year for large farm operations. He closed by encouraging the committee to oppose the bill.

The committee discussed the option of imposing a sales tax on food up to 2.9 percent in lieu of the tax bill package. Mr. Bredenkamp stated that the bureau did not oppose taxing food. The committee continued to discuss the exemption in the bill.

09:16 AM -- Mr. Steve Holdren, Colorado Livestock Association, testified in opposition toward the bill.

09:23 AM -- Mr. Matt Arnold, representing himself and Clear the Bench Colorado, testified in opposition toward the bill. He noted that the bill conflicts with Article 10, Section 20 of the State Constitution.


BILL:	HB10-1195
TIME:	09:26:02 AM
MOVED:	Benefield
MOTION:	Moved amendment L.008 (Attachment A). The motion passed without objection by those members present.
SECONDED:	Labuda
		VOTE
	DelGrosso
	Frangas
	Gerou
	Kagan
	Kefalas
	Labuda
	Roberts
	Summers
	Swalm
	Benefield
	Judd

Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB10-1195
TIME:	09:26:56 AM
MOVED:	Benefield
MOTION:	Moved amendment L. 007 (Attachment B). The motion passed without objection by those members present.
SECONDED:	Labuda
		VOTE
	DelGrosso
	Frangas
	Gerou
	Kagan
	Kefalas
	Labuda
	Roberts
	Summers
	Swalm
	Benefield
	Judd

Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB10-1195
TIME:	09:28:13 AM
MOVED:	DelGrosso
MOTION:	Moved amendment L.002 (Attachment C). The motion failed on a 6-5 vote.
SECONDED:	Swalm
		VOTE
	DelGrosso	Yes
	Frangas	No
	Gerou	Yes
	Kagan	No
	Kefalas	No
	Labuda	No
	Roberts	Yes
	Summers	Yes
	Swalm	Yes
	Benefield	No
	Judd	No

Not Final YES: 5 NO: 6 EXC: 0 ABS: 0 FINAL ACTION: FAIL


BILL:	HB10-1195
TIME:	09:29:57 AM
MOVED:	Benefield
MOTION:	Refer House Bill 10-1195, as amended, to the Committee of the Whole. 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