Date: 04/23/2014
Final
BILL SUMMARY for HB14-1374
HOUSE COMMITTEE ON FINANCE
| Votes: View--> | Action Taken: |
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02:52 PM -- HB14-1374
Representative Holbert came to the table to present House Bill 14-1374, and explained that it creates a sales and use tax exemption for aircraft owned by on-demand air carriers headquartered in Colorado, not registered in the state, and used in interstate commerce. On-demand air carriers operate aircraft of fewer than 60 seats or have a maximum payload of 18,000 pounds, and may conduct passenger, cargo, and mail service in air transportation between any points and at any rates or fares.
Amendment L.001 (Attachment B) was distributed to the committee. Representative Holbert explained that there was a drafting error in the original bill that is addressed by the amendment.
14HseFin0423AttachB.pdf
Representative Kraft-Tharp further explained the bill and the amendment. The representatives responded to questions on the amendment, the fiscal note for the bill, and whether the tax exemption will be effective in attracting businesses to Colorado.
03:10 PM
The representatives responded to questions on which types of aircraft qualify for the tax exemption.
03:12 PM -- Robert Olislagers, representing Centennial Airport, spoke in favor for the bill. He stated that the bill provides a tax exemption for on-demand charter companies that only keep their aircraft in Colorado on a temporary basis. He responded to questions on the types of aircraft that qualify for the tax exemption under the bill, why registration of an aircraft is a requirement of the bill, and whether purchasers of planes could avoid sales and use tax by taking the plane to another state. Committee discussion ensued.
03:31 PM -- Dennis McCall, representing Air Methods, spoke in favor of the bill. His written testimony was distributed to the committee, along with written testimony from a constituent provided by Representative DelGrosso (Attachment C). Mr. McCall stated that if an aircraft is used in Colorado, the tax exemption would not apply. He said the bill would allow on-demand air carriers to purchase planes to be used in other states and receive a sales and use tax exemption in Colorado. He responded to questions on how long an aircraft would typically be stored in Colorado if it was to be used elsewhere.
14HseFin0423AttachC.pdf
03:35 PM -- Patrick Pratt, representing the South Metro Denver Chamber, spoke in favor of the bill. He stated that the bill will help create jobs in Colorado.
03:37 PM
The bill was laid over to April 24, 2014.