House Committee on Finance (02/20/2013)

Final
STAFF SUMMARY OF MEETING

HOUSE COMMITTEE ON FINANCE

Date:	02/20/2013	ATTENDANCE

Time:	01:37 PM to 04:54 PM	DelGrosso	E
		Foote	X
Place:	LSB A	Joshi	X
		Kagan	X
This Meeting was called to order by		May	X
	Representative Court	Melton	X
		Pabon	X
This Report was prepared by		Priola	X
	Ron Kirk	Saine	X
		Swalm	X
		Wilson	X
		Labuda	X
		Court	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
HB13-1151 HB13-1190 HB13-1208 HB13-1177 HB13-1174		Committee Vote - Final Action Failed Referred to Appropriations Referred to Appropriations Postponed Indefinitely Postponed Indefinitely

01:37 PM -- House Bill 13-1151 - Concerning A Sales and Use Tax Exemption for Textbooks (For Action Only)

Representative Moreno, prime sponsor, briefly explained that House Bill 13-1151 creates a sales and use tax exemption for higher education textbooks for the next five years. In order to qualify for the exemption, new, used, or electronic textbooks must be: a) required or recommended for a course of higher education; b) purchased from the campus bookstore, and; c) purchased on the fourth Monday of August. In addition, the bill allows local governments to create a similar sales and use tax holiday. After a brief committee discussion, the following actions were taken.


BILL:	HB13-1151
TIME:	01:39:08 PM
MOVED:	Labuda
MOTION:	Moved Amendment L.001 (Attachment A). The motion passed without objection. 13HseFin0220AttachA.pdf
SECONDED:	Pabon
		VOTE
	DelGrosso	Excused
	Foote
	Joshi
	Kagan
	May
	Melton
	Pabon
	Priola
	Saine
	Swalm
	Wilson
	Labuda
	Court

YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB13-1151
TIME:	01:39:47 PM
MOVED:	Pabon
MOTION:	Refer House Bill 13-1151, as amended, to the Committee on Appropriations. The motion failed on a vote of 4-8.
SECONDED:	May
		VOTE
	DelGrosso	Excused
	Foote	No
	Joshi	No
	Kagan	No
	May	No
	Melton	No
	Pabon	Yes
	Priola	Yes
	Saine	No
	Swalm	Yes
	Wilson	Yes
	Labuda	No
	Court	No

YES: 4 NO: 8 EXC: 1 ABS: 0 FINAL ACTION: FAIL


BILL:	HB13-1151
TIME:	01:49:42 PM
MOVED:	Labuda
MOTION:	Moved to postpone House Bill 13-1151 indefinitely. The motion failed on a 6-6 vote.
SECONDED:	Kagan
		VOTE
	DelGrosso	Excused
	Foote	Yes
	Joshi	Yes
	Kagan	Yes
	May	Yes
	Melton	No
	Pabon	No
	Priola	No
	Saine	No
	Swalm	No
	Wilson	No
	Labuda	Yes
	Court	Yes

YES: 6 NO: 6 EXC: 1 ABS: 0 FINAL ACTION: TIE

01:51 PM -- House Bill 13-1190 - Concerning the Enterprise Zone Contribution Credit

Representative Moreno, prime sponsor, explained that under current law, the Enterprise Zone (EZ) Contribution Tax Credit allows a taxpayer to claim a credit for monetary or in-kind donations that help implement the economic development plan for an enterprise zone. The donation may be made to an enterprise zone administrator or directly to a certified program, project, or organization that meets statutory criteria. He closed by saying that beginning January 1, 2013, this bill allows a taxpayer to make an EZ donation via a qualified intermediary nonprofit organization. The organization is required to distribute 100 percent of the donations as directed by the taxpayer to a recipient nonprofit organization, program, or project that is certified by the EZ Administrator. Both intermediary and recipient organizations must be classified as charitable organizations under federal code.

The following persons testified:

02:02 PM -- Mr. Renny Fagan, representing the Colorado Nonprofit Association, testified in support of the bill. Mr. Fagan explained the provisions of the bill and the interaction between nonprofit organizations affected by the bill and the Enterprise Zone Program.

02:08 PM -- Ms. Leslie Hannon and Mr. Ken Kirwin, both representing the Mile High United Way of Denver, testified in support to the bill and responded to questions from the committee.

02:33 PM -- Ms. Victoria McVicker, representing SafeHouse Denver, testified in support of the bill.

02:43 PM -- Mr. Ken Summers, representing himself and the Teen Challenge for the Rocky Mountains, testified in support of the bill.


BILL:	HB13-1190
TIME:	02:44:45 PM
MOVED:	Kagan
MOTION:	Refer House Bill 13-1190 to the Committee on Appropriations. The motion passed on a vote of 12-0.
SECONDED:	May
		VOTE
	DelGrosso	Excused
	Foote	Yes
	Joshi	Yes
	Kagan	Yes
	May	Yes
	Melton	Yes
	Pabon	Yes
	Priola	Yes
	Saine	Yes
	Swalm	Yes
	Wilson	Yes
	Labuda	Yes
	Court	Yes

Final YES: 12 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

02:47 PM -- House Bill 13-1208 - Concerning Incentives Offered By Creative Districts

Representative Duran, prime sponsor, explained that House Bill 13-1208 gives the Creative Industries (CI) division of the Office of Economic Development and International Trade (OEDIT) the authority to expend moneys in the CI Cash Fund for need-based funding for infrastructure development in state-certified creative districts.

The following persons testified:

02:49 PM -- Ms. Macy Dorf, representing the Arts District on Sante Fe, testified in support of the bill.

03:02 PM -- Ms. Kim Estes McCarty, representing the Arts District on Santa Fe, testified in support of the bill.

03:09 PM -- Ms. Jennifer Cassell, representing the Office of Economic Development and International Trade, testified in support of the bill and responded to questions about creative district programs in Colorado. She explained that under the program a person who earns income performing creative business activities within a creative district can claim a tax credit equal to 50 percent of his or her state income tax liability each year from business derived from those activities. She closed by saying that last year, 45 applicants were being reviewed for purposes of the program.

03:20 PM -- Ms. Jennifer Mello, representing Arts for Colorado, testified in support of the bill.


BILL:	HB13-1208
TIME:	03:14:54 PM
MOVED:	Pabon
MOTION:	Refer House Bill 13-1208 to the Committee on Appropriations. The motion passed on a vote of 7-5.
SECONDED:	Foote
		VOTE
	DelGrosso	Excused
	Foote	Yes
	Joshi	No
	Kagan	Yes
	May	Yes
	Melton	Yes
	Pabon	Yes
	Priola	No
	Saine	No
	Swalm	No
	Wilson	Yes
	Labuda	No
	Court	Yes

YES: 7 NO: 5 EXC: 1 ABS: 0 FINAL ACTION: PASS

03:28 PM -- House Bill 13-1177 - Concerning the Business Personal Property Tax

Representative Holbert, prime sponsor, explained the provisions of the bill. He noted that under current law, the property tax exemption for business personal property on a single personal property schedule is $7,000 for property tax year 2013 and 2014, and an inflation adjusted amount every two years thereafter. If the value of the taxpayer's personal property is greater than this amount, none of the taxpayer's property is exempt. For these taxpayers, this bill establishes an exemption from property tax equal to the first $7,000 of actual value in tax year's 2013 and 2014 and an inflation adjusted amount thereafter.

The following persons testified:

03:39 PM -- Mr. Patrick Boyle, representing the Colorado Competitive Council, testified in support of the bill.

03:41 PM -- Mr. Tony Gagliardi, representing the National Federation of Independent Business, testified in support of the bill.

03:43 PM -- Mr. Tom Clark, representing the Metro Denver Economic Development Corporation, testified in support of the bill.

03:49 PM -- Mr. Bill Clayton, representing Colorado Counties Incorporated, Mr. Evan Goulding, representing the Special Districts Association, and Mr. Mark Radtke, representing the Colorado Municipal League, testified in opposition to the bill.


BILL:	HB13-1177
TIME:	04:03:23 PM
MOVED:	Swalm
MOTION:	Moved Amendment L.001 (Attachment B). The motion passed without objection. 13HseFin0220AttachB.pdf
SECONDED:	Priola
		VOTE
	DelGrosso	Excused
	Foote
	Joshi
	Kagan
	May
	Melton
	Pabon
	Priola
	Saine
	Swalm
	Wilson
	Labuda
	Court

YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB13-1177
TIME:	04:04:18 PM
MOVED:	Swalm
MOTION:	Refer House Bill 13-1177, as amended, to the Committee on Appropriations. The motion failed on a vote of 5-7.
SECONDED:	Saine
		VOTE
	DelGrosso	Excused
	Foote	No
	Joshi	Yes
	Kagan	No
	May	No
	Melton	No
	Pabon	No
	Priola	Yes
	Saine	Yes
	Swalm	Yes
	Wilson	Yes
	Labuda	No
	Court	No

YES: 5 NO: 7 EXC: 1 ABS: 0 FINAL ACTION: FAIL


BILL:	HB13-1177
TIME:	04:21:42 PM
MOVED:	Kagan
MOTION:	Motion to postpone House Bill 13-1177 indefinitely. The motion passed on a vote of 7-5.
SECONDED:	Pabon
		VOTE
	DelGrosso	Excused
	Foote	Yes
	Joshi	No
	Kagan	Yes
	May	Yes
	Melton	Yes
	Pabon	Yes
	Priola	No
	Saine	No
	Swalm	No
	Wilson	No
	Labuda	Yes
	Court	Yes

Final YES: 7 NO: 5 EXC: 1 ABS: 0 FINAL ACTION: PASS

04:22 PM -- House Bill 13-1174 - Concerning the Business Personal Property Tax

Representative Saine and Representative Humphrey, prime sponsors, explained the provisions of the bill. Representative Saine began by saying that under current law, the property tax exemption for business personal property on a single personal property schedule is $7,000 in actual value for property tax years 2013 and 2014, and an inflation adjusted amount every two years thereafter. This bill increases the exemption to $25,000 for property tax years 2015 and 2016 and $50,000 for property tax years 2017 and 2018, adjusted biennially for inflation thereafter.

Representative Humphrey noted that the business personal property tax is a burdensome tax for small businesses to comply with and is costly to administer. He closed by saying that the bill also exempts all locally assessed business personal property that is fully depreciated. Under current law, business personal property that is fully depreciated is still subject to property taxation.

The following persons testified:

04:32 PM -- Mr. Patrick Boyle, representing the Colorado Competitive Council, testified in support of the bill.

04:38 PM -- Mr. Jim Noon, representing Centennial Container, testified in support of the bill.

04:39 PM -- Mr. Toni Gagliardi, representing the National Federation of Independent Business, testified in support of the bill.

04:46 PM -- Mr. Tom Clark, representing the Metro Denver Economic Development Corporation, testified in support of the bill.

04:46 PM -- Mr. Bill Clayton, representing Colorado Counties Incorporated, and Mr. Evan Goulding, representing the Special Districts Association, testified in opposition to the bill.


BILL:	HB13-1174
TIME:	04:49:50 PM
MOVED:	Priola
MOTION:	Refer House Bill 13-1174 to the Committee on Appropriations. The motion failed on a vote of 5-7.
SECONDED:	Swalm
		VOTE
	DelGrosso	Excused
	Foote	No
	Joshi	Yes
	Kagan	No
	May	No
	Melton	No
	Pabon	No
	Priola	Yes
	Saine	Yes
	Swalm	Yes
	Wilson	Yes
	Labuda	No
	Court	No

YES: 5 NO: 7 EXC: 1 ABS: 0 FINAL ACTION: FAIL


BILL:	HB13-1174
TIME:	04:53:54 PM
MOVED:	Melton
MOTION:	Motion to postpone House Bill 13-1174 indefinitely. The motion passed on a vote of 7-5.
SECONDED:	Labuda
		VOTE
	DelGrosso	Excused
	Foote	Yes
	Joshi	No
	Kagan	Yes
	May	Yes
	Melton	Yes
	Pabon	Yes
	Priola	No
	Saine	No
	Swalm	No
	Wilson	No
	Labuda	Yes
	Court	Yes

Final YES: 7 NO: 5 EXC: 1 ABS: 0 FINAL ACTION: PASS

04:54 PM

The committee adjourned.