Date: 03/19/2014

Final
BILL SUMMARY for HB14-1279

HOUSE COMMITTEE ON FINANCE

Votes: View--> Action Taken:
Adopt amendment L.003 (Attachment D). The motion p
Refer House Bill 14-1279, as amended, to the Commi		Pass Without Objection
PASS



03:29 PM -- HB14-1279

Representatives Primavera and Young came to the table to present House Bill 14-1279. A document summarizing the bill was distributed to the committee (Attachment B). They explained that the bill creates a state income tax credit for businesses for the amount of business personal property tax paid in Colorado. The credit is equal to the amount of business personal property tax paid, less the value of the tax benefit received by the taxpayer from deducting these taxes from his or her federal taxable income. The Representatives explained that the credit is available in tax year 2014 only to businesses with $25,000 or less of personal property, but this threshold is adjusted annually for inflation thereafter. They responded to questions on the dollar threshold of the credit and whether nonprofit companies would qualify for the credit.

14HseFin0319AttachB.pdf14HseFin0319AttachB.pdf

03:38 PM

Ed DeCecco, Office of Legislative Legal Services, came to the table to respond to a question on the sunset date for the tax credit.


03:39 PM

Todd Herreid, Legislative Council Staff, came to the table to speak to questions on the fiscal note for the bill, and current income tax exemptions available to small businesses. Representative Young spoke to a question on how much money the state is anticipating returning to small businesses through the bill. Committee discussion ensued.


03:46 PM

Mr. Herreid responded to a question on the FTE requirements of the bill laid out in the fiscal note. Mr. DeCecco responded to questions on whether the bill applies to non-profits.

03:52 PM -- Tim Hoover, representing the Colorado Fiscal Institute (CFI), spoke against the bill. He stated that CFI is against the bill because it is unfair to state taxpayers as it uses state tax dollars to reimburse local property taxes. Mr. Hoover added that the bill will create administrative issues for the Department of Revenue, and will only benefit small businesses to a small degree. He distributed his written testimony to the committee (Attachment C) and responded to questions.

14HseFin0319AttachC.pdf14HseFin0319AttachC.pdf

04:01 PM -- Patrick Boyle, representing the Colorado Competitive Council, spoke in favor of the bill. He stated that the business personal property tax is one of the worst tax policies in Colorado, and that the bill would work towards reducing the negative impact that it has on small business in the state. Mr. Boyle responded to questions on the business personal property tax, how businesses will likely spend the tax credit, and whether local governments could institute a business personal property tax of their own.

04:16 PM -- Mark Turner, representing the Colorado Nonprofit Association, spoke in support of the bill.

04:17 PM -- Herbert Holman, representing himself, spoke against the bill. He stated that he feels the fiscal impact of the bill was glossed over in previous committee hearings, and made an appeal to the committee and the legislature to fund a tax code review that he believes is sorely needed.
BILL:HB14-1279
TIME: 04:27:03 PM
MOVED:Court
MOTION:Adopt amendment L.003 (Attachment D). The motion passed without objection.

14HseFin0319AttachD.pdf14HseFin0319AttachD.pdf
SECONDED:Melton
VOTE
Becker
No
DelGrosso
No
Foote
No
Joshi
No
Kagan
No
Melton
No
Pabon
No
Priola
No
Saine
No
Swalm
No
Wilson
No
Labuda
No
Court
No
YES: 0 NO: 13 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


04:27 PM

The bill sponsors made their closing comments and the committee discussed the merits of the bill.
BILL:HB14-1279
TIME: 04:35:39 PM
MOVED:Pabon
MOTION:Refer House Bill 14-1279, as amended, to the Committee on Appropriations. The motion passed on a vote of 11-2.
SECONDED:Melton
VOTE
Becker
Yes
DelGrosso
Yes
Foote
Yes
Joshi
No
Kagan
Yes
Melton
Yes
Pabon
Yes
Priola
Yes
Saine
Yes
Swalm
Yes
Wilson
Yes
Labuda
No
Court
Yes
YES: 11 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS


04:36 PM

The committee went into a brief recess.