Date: 04/17/2014

Final
BILL SUMMARY for HB14-1371

HOUSE COMMITTEE ON FINANCE

Votes: View--> Action Taken:
Refer House Bill 14-1371 to the Committee of the WPASS



12:01 PM -- HB14-1371

Representative Young came to the table to present House Bill 14-1371. He explained that under current law, for property tax purposes, the production value from oil and gas leases that are located in more than one local governmental taxing district (county, municipality, special district, or school district) must be allocated between the districts in proportion to the surface acreage of the lease within each district's boundaries. This bill specifies that, instead, the wellhead is the point of valuation and taxation for property tax purposes. He responded to questions on why he is bringing the bill, why the method of appraisal laid out by the bill was chosen, and if any industry organizations are in opposition to the bill.

12:07 PM -- Travis Holland, representing Anadarko Petroleum Corporation, the Colorado Petroleum Association, and the Colorado Oil and Gas Association, spoke in favor of the bill. He stated that the legislation is logical and simple, and that the situation surrounding its need is unique to Colorado because of its special district system of taxation. He stated that the bill does not affect the valuation of a mineral estate. He described the complexities involved in the valuation and taxation of wellheads. He stated that the bill deems that the point of taxation is the same as the point of valuation.


12:23 PM

Mr. Holland responded to questions on how valuation and taxation is performed in other states, how taxes are collected on wellheads, and whether the bill could result in less tax receipts from special districts. Committee questioning and discussion of wellheads, valuation, and taxation ensued.

12:40 PM -- John Lefebvre, representing the Colorado County Treasurers' Association, spoke in support of the bill. He spoke to the issues experienced by the Treasurer's Office with current oil and gas lease taxation and valuation requirements. He responded to questions on city taxation of wellheads under the bill.

12:47 PM -- Jim Yellico and Christopher Woodruff, representing the Colorado Assessors Association, came to the table for questions. Mr. Woodruff spoke to questions on how the bill could affect a city's ability to collect tax revenue from an oil or gas lease. Mr. Yellico stated that his association is neutral on the bill, and is not in support of the bill as had previously been suggested. The witnesses responded to questions on the typical size of an oil or gas lease.

12:57 PM -- MaryAnn McGeady, representing McGeady Sisneros, the Beebe Draw Community, the Pioneer Community, and the Godding Hollow Community, spoke in favor of the bill. She discussed the complexities of the valuation and taxation of oil and gas leases by different taxing districts and how the bill would simplify these processes. She responded to questions on the ability of different tax districts to collect revenue under the bill.

01:06 PM -- Curt Settle, representing the Department of Local Affairs' Division of Property Taxation, came to the table for questions, and spoke to the genesis of the bill.


01:09 PM

Representative Young made his closing comments and the committee discussed the merits of the bill.

BILL:HB14-1371
TIME: 01:13:00 PM
MOVED:Court
MOTION:Refer House Bill 14-1371 to the Committee of the Whole. The motion passed on a vote of 12-1.
SECONDED:Pabon
VOTE
Becker
No
DelGrosso
Yes
Foote
Yes
Joshi
Yes
Kagan
Yes
Melton
Yes
Pabon
Yes
Priola
Yes
Saine
Yes
Swalm
Yes
Wilson
Yes
Labuda
Yes
Court
Yes
YES: 12 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS


01:14 PM

The committee was adjourned.