Date: 02/06/2014

Final
BILL SUMMARY for HB14-1080

HOUSE COMMITTEE ON FINANCE

Votes: View--> Action Taken:
Refer House Bill 14-1080 to the Committee of the WPASS



10:08 AM -- HB14-1080

Representative McLachlan and Representative Coram came to the table to present House Bill 14-1080. Representative McLachlan explained that the bill clarifies that sales taxes do not apply to purchases made on a reservation, or delivered to the reservation, if the purchaser is an enrolled tribal member. In addition, it exempts sales of automobiles from sales taxes if they are made by an enrolled tribal member and the automobile will be registered at an address on a reservation. It also allows for a sales tax exemption if the sale is made on the reservation to a legal entity that is owned or partially owned by an enrolled tribal member. Representative Coram stated that he thought the bill was good for the districts covered by himself and Representative McLachlan. The representatives responded to questions on the fiscal note of the bill, and the codification of existing practices of the Department of Revenue (DOR) that are related to the bill.

Ed DeCecco, Office of Legislative Legal Services, came to the table to speak to the drafting of the bill and the bill summary. Mr. DeCecco told the committee that he would be modifying the bill summary to better reflect the bill language.

10:15 AM -- Howard Richards Sr., representing the Southern Ute Indian Tribal Council, spoke in favor of the bill. Mr. Richards stated that the bill is of great importance to his tribe, and that it will help rectify confusion that has existed over state law and provide clarity. He added that it will improve consistency in the application of relevant tax rules, and that the legislation will codify longstanding state and local practices regarding the sale of automobiles to tribal members in the state. Mr. Richards responded to a question on whether the addressed tribes have boundaries that extend beyond the borders of Colorado.

10:22 AM -- Manuel Heart, representing the Ute Mountain Ute Tribe, came to the table to speak in favor of the bill. He stated that the members of the Ute Mountain Ute Tribe live in the southwest corner of Colorado, and often come up to Denver to purchase vehicles. Mr. Heart told the committee that often the best deals are available in Colorado's larger cities, where sometimes the dealerships are not aware of the sales and use tax exemption for Colorado Ute Indians. He stated that the bill would alleviate this confusion. Mr. Heart responded to questions on how dealerships might become aware of the sales and use tax exemption, and purchases made by tribal members outside the state.

10:29 AM -- Sam Maynes, representing the Southern Ute Indian Tribe, spoke in favor of the bill. He responded to a question on how many localities there are that do not currently honor the sales and use tax exemption addressed by the bill. He stated that this bill will bring consistency across the board for the numerous involved parties.
BILL:HB14-1080
TIME: 10:33:31 AM
MOVED:Melton
MOTION:Refer House Bill 14-1080 to the Committee of the Whole. The motion passed on a vote of 12-0, with 1 member excused.
SECONDED:Saine
VOTE
Becker
Yes
DelGrosso
Excused
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: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS