House Committee on Finance (04/06/2010)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON FINANCE

Date:	04/06/2010	ATTENDANCE

Time:	09:59 AM to 11:11 AM	DelGrosso	X
		Frangas	X
Place:	LSB A	Gerou	X
		Kagan	*
This Meeting was called to order by		Kefalas	X
	Representative Judd	Labuda	X
		Roberts	X
This Report was prepared by		Summers	X
	Elizabeth Hanson	Swalm	X
		Benefield	X
		Judd	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
Presentation by Department of Revenue SB10-172		Witness Testimony and/or Committee Discussion Only Referred to the Committee of the Whole

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.

10:22 AM -- Senate Bill 10-172

Representative Primavera, prime sponsor, presented Senate Bill 10-172. This bill extends the voluntary contribution designations (or income tax checkoffs) benefitting three income tax checkoff programs, including the Colorado Domestic Abuse Program Fund, the Pet Overpopulation Fund, and the Colorado Breast and Women's Reproductive Cancers Fund through income tax year 2019. After subtracting costs for the Department of Revenue to administer contributions, all remaining donations will be transferred to the respective funds. Representative Primavera explained the Colorado income tax checkoff program and its history.

10:25 AM

Representative Primavera responded to questions about extending the checkoffs for a ten-year period. She explained that a ten-year period is appropriate because these program have met the $75,000 threshold. Committee discussion continued about the programs. The committee also discussed a letter from the Revisor of Statutes and the pet overpopulation fund. Representative Primavera stated that House Bill 10-1214 can be amended to conform with Senate Bill 10-172. The committee continued discussing extending the 3 programs for a ten-year period.

10:31 AM

Committee members asked several questions about the Colorado checkoff program and current Colorado law. Mr. Troy Bratton, representing the Office of Legislative Legal Services (OLLS), responded to committee questions about bill and extending the checkoff programs. He noted the three-year renewal would not apply but the $75,000 threshold would still apply to the legislation. Mr. Bratton responded to additional questions about the required contribution threshold and the three-year renewal of checkoff programs. The committee also discussed the fiscal impact of the bill.

10:36 AM

Mr. Bratton continued responding to committee questions about Colorado law and the income tax checkoff program. Committee members also raised questions about the rationale for extending the program for ten years, and discussion ensued about applying different time periods for extending existing tax checkoff programs.

10:44 AM

Committee members raised questions about the charities that benefit from the income tax checkoff program. Representative Primavera stated that perhaps the General Assembly should have a larger discussion about the program. Committee members expressed concerns about having different cut off periods for different income tax checkoff programs.

The following persons testified:

10:47 AM -- Ms. Amy Miller, representing the Colorado Coalition for Domestic Violence, testified in support of the bill. She stated the Domestic Abuse checkoff has been on the form since 1985 and is also one of the oldest checkoff programs on the current income tax form. She noted the program has exceeded the required threshold contribution amount for many years. Ms. Miller stated that although Colorado has come a long way in meeting the needs for victims services, there is still further progress that is needed. She stated that many individuals still need assistance, and closed by urging the committee to support the bill.

10:51 AM

Ms. Miller responded to committee questions about the amount of donations the program has received. She also discussed the administration of the fund and how the monies are used. She noted that the program is administered by the Colorado Department of Health and Human Services. Representative Primavera also stated that the funds provide monies for telephone hotlines and other emergency services for victims of domestic violence. Committee members continued discussing how the program's funds are used.

10:57 AM -- Ms. Vickie Tosher, representing the Colorado Breast and Women's Reproductive Cancers checkoff program, testified in support of the bill. She stated that the funds assist breast cancer survivors, and further noted that reproductive cancers receive very little funding. She provided committee members with a history of the program. In the first round of funding, the program's monies are used to assist women and educate women about ovarian cancer, she explained. Ms. Tosher also explained that many women cannot afford screening for these types of cancers.

11:02 AM -- Mr. David Gies, representing the Colorado Pet Overpopulation Fund, testified in support of the bill. He noted the Pet Overpopulation checkoff was the third most popular checkoff on the Colorado income tax form. He also stated the fund makes a big difference to rural Colorado because the funds provide assistance in these areas. Mr. Gies urged the committee to support the bill.

11:05 AM

Representative Judd closed public testimony. The committee discussed potential amendments and Representative Primavera also shared her thoughts.

11:06 AM

Representative Judd closed the amendment phase, and committee members provided closing comments.


BILL:	SB10-172
TIME:	11:11:05 AM
MOVED:	Benefield
MOTION:	Refer Senate Bill 10-172 to the Committee of the Whole with a favorable recommendation. The motion passed on a roll call vote of 11-0.
SECONDED:	Kefalas
		VOTE
	DelGrosso	Yes
	Frangas	Yes
	Gerou	Yes
	Kagan	Yes
	Kefalas	Yes
	Labuda	Yes
	Roberts	Yes
	Summers	Yes
	Swalm	Yes
	Benefield	Yes
	Judd	Yes

Final YES: 11 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

11:11 AM

The committee adjourned.