Date: 04/22/2015

Final
BILL SUMMARY for HB15-1346

HOUSE COMMITTEE ON FINANCE

Votes: View--> Action Taken:
Adopt amendment L.001 (Attachment C). The motion p
Adopt amendment L.002 (Attachment D) The motion pa
Adopt amendment L.004 (Attachment E). The motion p
Refer House Bill 15-1346, as amended, to the Commi		Pass Without Objection
Pass Without Objection
Pass Without Objection
PASS



01:39 PM -- HB15-1346

Representative Foote, vice-chair, called the meeting to order. Representatives Foote and Pettersen, co-prime sponsors, introduced House Bill 15-1346. Conditional on voter approval, the bill requires that corporations filing a Colorado combined income tax return add income from affiliated corporations incorporated in tax haven jurisdictions. The bill lists jurisdictions that are considered tax havens and requires the Department of Revenue to biennially report to the finance committees in the General Assembly with an update of countries that may be considered tax havens. In addition, the bill allows corporations indirectly owned by an parent C corporation to be included as part of an affiliated groups of corporations. The money will be transferred from the General Fund to the State Education Fund. Representative Foote distributed a photo of a building in the Cayman Islands that houses over 140 affiliated companies (Attachment A). He also distributed an article from the Denver Post (Attachment B), amendment L.001 (Attachment C), amendment L.002 (Attachment D), and amendment L.004 (Attachment E).

15HouseFin0422AttachA.pdf15HouseFin0422AttachA.pdf 15HouseFin0422AttachB.pdf15HouseFin0422AttachB.pdf

15HouseFin0422AttachC.pdf15HouseFin0422AttachC.pdf 15HouseFin0422AttachD.pdf15HouseFin0422AttachD.pdf

15HouseFin0422AttachE.pdf15HouseFin0422AttachE.pdf

01:50 PM -- Mr. Brian Tanner, representing the Colorado Education Association, testified in support of the bill. He discussed how the bill will help reduce the negative factor and help fund Colorado schools.

01:58 PM -- Mr. Tyler Rauert, representing the World Trade Center Denver, testified in opposition to the bill. He noted that the bill could create a flight of foreign investment out of Colorado. In response to committee questions, he discussed federal and other state initiatives regarding corporate tax havens.

02:07 PM -- Mr. Danny Katz, representing the Colorado Public Interest Research Group, testified in support of the bill. He discussed the advantages of the bill to small businesses. He distributed a handout (Attachment F) to the committee.

15HouseFin0422AttachF.pdf15HouseFin0422AttachF.pdf

02:14 PM -- Ms. Loren Furman, representing the Colorado Association of Commerce and Industry (CACI), testified in opposition to the bill. She discussed the possible effects of the bill on the Colorado economy.

02:15 PM -- Ms. Rhonda Sparlin, representing the CACI Tax Council, testified in opposition to the bill. She spoke about the tax consequences of the bill. She responded to numerous questions from the committee regarding corporate taxes in Colorado.

02:31 PM -- Mr. Richard Eidlin, representing the American Sustainable Business Council, testified in support of the bill. He discussed how tax havens disadvantage local small businesses.

02:36 PM -- Mr. Phillip Horowitz, representing the Colorado Department of Revenue (DOR), came to the table to answer questions.

02:39 PM -- Mr. Patick Boyle, representing the Colorado Competitive Council and Greater Denver Chamber of Commerce, testified in opposition to the bill. He discussed how the bill title is misleading for the voters.

02:43 PM -- Ms. Heather O'Connor, representing Colorado Fair Share, testified in support of the bill. She discussed the opinions and personal experiences of several Colorado small business taxpayers.

02:50 PM -- Ms. Cardine Gasteal, representing the Colorado Progressive Coalition, testified in support of the bill. She discussed how the bill creates tax fairness in Colorado.

02:56 PM -- Mr. Dan Shannon, representing Gary's Auto Service, testified in support of the bill. He noted his personal experience with running a small business in Colorado. He discussed how this bill will bring tax fairness to small businesses in Colorado.

03:06 PM -- Mr. Horowitz, representing DOR, returned to the table to answer committee questions. He discussed corporations doing business in Colorado and other tax issues. Committee discussion ensued.

03:20 PM -- Mr. Louis Pino, Legislative Council Staff, came to the table to answer questions regarding the fiscal note.


03:26 PM

Representatives Foote and Pettersen discussed committee questions that arose during witness testimony. Committee discussion ensued.
BILL:HB15-1346
TIME: 03:43:07 PM
MOVED:Foote
MOTION:Adopt amendment L.001 (Attachment C). The motion passed without objection.
SECONDED:Garnett
VOTE
Becker K.
Conti
Garnett
Kagan
Pabon
Priola
Roupe
Van Winkle
Wilson
Foote
Court
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:HB15-1346
TIME: 03:43:48 PM
MOVED:Foote
MOTION:Adopt amendment L.002 (Attachment D) The motion passed without objection.
SECONDED:Court
VOTE
Becker K.
Conti
Garnett
Kagan
Pabon
Priola
Roupe
Van Winkle
Wilson
Foote
Court
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:HB15-1346
TIME: 03:44:27 PM
MOVED:Foote
MOTION:Adopt amendment L.004 (Attachment E). The motion passed without objection.
SECONDED:Garnett
VOTE
Becker K.
Conti
Garnett
Kagan
Pabon
Priola
Roupe
Van Winkle
Wilson
Foote
Court
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


03:44 PM

Representative Priola distributed amendment L.006 (Attachment G) and amendment L.007 (Attachment H). Representative Court ruled that both amendments do not fit under the bill title.

15HouseFin0422AttachG.pdf15HouseFin0422AttachG.pdf 15HouseFin0422AttachH.pdf15HouseFin0422AttachH.pdf
BILL:HB15-1346
TIME: 03:48:44 PM
MOVED:Foote
MOTION:Refer House Bill 15-1346, as amended, to the Committee on Appropriations. The motion passed on a vote of 6-5.
SECONDED:Court
VOTE
Becker K.
Yes
Conti
No
Garnett
Yes
Kagan
Yes
Pabon
Yes
Priola
No
Roupe
No
Van Winkle
No
Wilson
No
Foote
Yes
Court
Yes
Final YES: 6 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: PASS