Date: 02/12/2014

Final
BILL SUMMARY for HB14-1143

HOUSE COMMITTEE ON LOCAL GOVERNMENT

Votes: View--> Action Taken:
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03:04 PM -- HB14-1143

Representative Saine, sponsor, presented House Bill 14-1143 concerning the classification of a residential storage condominium unit as a residential improvement for property tax purposes. The bill establishes that a residential storage condominium unit is a residential improvement and that the unit will be assessed as a residential real property at 7.96 percent of actual value instead of as nonresidential property at 29 percent of actual value. For a building to qualify as a residential storage condominium unit, the owner of the building unit must submit an affidavit stating that the building unit meets the definition of a residential storage condominium unit. The sponsor distributed letters of support from Mark and Jackie McGlashan (Attachment A), Pam and Bill Johnson (Attachment B), Peter and Susan Day (Attachment C), Robert S. Belica (Attachment D), and Billy Don Johnson (Attachment E).

14HseLocal0212AttachA.pdf14HseLocal0212AttachA.pdf14HseLocal0212AttachB.pdf14HseLocal0212AttachB.pdf

14HseLocal0212AttachC.pdf14HseLocal0212AttachC.pdf14HseLocal0212AttachD.pdf14HseLocal0212AttachD.pdf

14HseLocal0212AttachE.pdf14HseLocal0212AttachE.pdf

Representative Saine answered questions from the committee regarding tax revenue and the differences between residential and non-residential tax classification. She said that these storage units are used for residential storage purposes and that they should be included under similar classification standards for individuals who own units.

03:15 PM -- Michael Ard, representing himself, spoke in favor of the bill. He discussed his career in the construction and sale of residential storage condominium facilities. He distributed an information packet on residential storage condo owners of Colorado (Attachment F). He said that this bill will lower unfair taxes for residential storage. He answered questions from the committee regarding the average cost of the units and the building standards based on fire codes.

14HseLocal0212AttachF.pdf14HseLocal0212AttachF.pdf

03:22 PM -- Mark Chapin, representing Colorado Assessors Association, spoke out against the bill. He discussed the tax classifications and zoning requirements for residential facilities. He said that the bill allows commercial property to be taxed at a lower rate.

Representative Gardner discussed the Colorado constitution in relation to current law. Mr. Chapin said that the bill gives storage unit property an unfair advantage in the market.


03:32 PM

Representative Garden discussed Article V, Section 3, of the Colorado Constitution and assessment policies regarding residential property.


03:42 PM

Mr. Chapin answered questions from Representative Gadner regarding residential property assessment requirements.

03:45 PM -- Paul Jacobs, Denver County Assessor, spoke out against the bill. He said that the bill sets a dangerous precedent for tax law and discussed the impact on revenue. Mr. Jacobs said that tax law needs to be uniform and that the bill creates policy that does not establish standards for the requirement of regulators in coordination with other tax laws.

Mr. Jacobs answered questions from the committee regarding the number of units in Denver that would potentially be impacted by the bill.

03:52 PM -- Marc Carey, Legislative Council Staff, answered questions on the fiscal note regarding the number of units potentially impacted by the bill.

Mr. Jacobs answered questions from the committee regarding inspection requirements for assessors. He said that the bill does not provide standards for assessors to follow and that a uniform system must be developed.

Representative Saine answered questions from the committee on working with the assessors to establish standards.

04:09 PM -- Karen Miller, Colorado Assessors Association, spoke out against the bill and identified the Colorado assessors in opposition of the bill. She distributed a handout (Attachment G) and said that this bill isn't restricted to Colorado residents for ownership.

04:12 PM -- John Zimmerman, representing himself, spoke in opposition to the bill. He distributed a handout to the committee (Attachment H) and said that the bill threatens tax equity standards established by the Colorado Constitution.

04:15 PM -- Jim Yellico, Garfield County Assessor, spoke in opposition of the bill. He discussed the current tax structure in relation to storage units. He said that this bill only helps one industry and that this is an issue of tax code.

04:18 PM -- Gil Reyes, Adams County, spoke in opposition to the bill. He said that this is a niche bill that only helps one industry and impacts revenue for the community. He said that this bill does not establish fair policies and only provides tax breaks for one industry.

Mr. Reyes, Mr. Zimmerman, and Mr. Yellico discussed the impact on revenue, the number of units within districts, and the value of property.

Representative Gadner discussed the constitutionality of establishing inequity in tax policy.


04:31 PM

The committee continued to discuss the bill's potential impact on tax policy. Mr. Yellico answered questions from the committee regarding the process for storage facilities to become condominiums. Mr. Reyes answered questions from the committee regarding the classification of residential properties.

04:39 PM -- Bill Johnson, representing himself, spoke in favor of the bill. He discussed his residency in Colorado and his need to purchase a storage condominium. He said the provisions in the bill will offer homeowners the opportunity for homeowners to store goods at the residential tax rate. He answered questions from the committee regarding the equity of the bill's provisions and the appeal of residential use and value.


04:47 PM

The committee recessed.


04:50 PM

The committee came back to order. Representative Fields laid over House Bill 14-1143 until after House Bill 14-1161.