Bill Summary for Bill Number HB15-1228

Date: 04/29/2015

Final
BILL SUMMARY for HB15-1228

SENATE COMMITTEE ON STATE, VETERANS, & MILITARY AFFAIRS

Votes: View-->	Action Taken:
Refer House Bill 15-1228 to the Committee on Appro	PASS

01:39 PM -- HB15-1228

Senator Scott, sponsor, presented House Bill 15-1228 to the committee. This bill, as amended by the House Finance Committee, makes several changes to the administration and collection of the special fuel excise tax (tax) on liquefied petroleum gas (LPG), beginning in calendar year 2016. These changes include:

• limiting the imposition of the tax on LPG so that, in most instances, the tax is levied when LPG is placed in a motor vehicle's fuel tank, instead of when the LPG is acquired, sold, offered for sale, or used for any purpose whatsoever;
• requiring a distributor that places LPG in a fuel tank to pay the tax;
• allowing a retailer not to be considered as a distributor, provided it files an affidavit with the Department of Revenue (DOR) and posts a notice stating that the LPG it sells is not for vehicle use;
• designating the operator of a private commercial fleet that uses LPG as a distributor where no other distribution contract is in place;
• requiring a distributor that uses LPG to propel a cargo tank motor vehicle to pay the tax on the LPG used for this purpose, based on odometer readings of the mileage traveled by the vehicle;
• assessing the tax on the volume of net gallons, rather than gross gallons, of LPG;
• eliminating the 2 percent allowance for LPG lost in transit or handling;
• eliminating the minimum amount, currently $25,000, of a surety bond that an LPG distributor may deposit with the DOR in lieu of evidence of a savings account, deposit, or certificate of deposit; and
• prohibiting the DOR from collecting any penalties or interest related to the tax on LPG sold in calendar years 2014 and 2015.

Additionally, the bill changes the definition of "gallon" for the purpose of assessing the special fuel excise tax on compressed natural gas (CNG). The bill defines "gallon" so that the tax is assessed on a quantity of fuel computed using the same method as was the basis for the purchase of gas at the wholesale level, provided that the method is one of three identified in statute.

Senator Scott explained that the bill cleaned up a problem for propane dealers.

01:41 PM -- Charles Brown, representing the Colorado Propane Gas Association, testified in support of the bill. He explained that the bill keeps residential customers from paying excise taxes on propane fuel.

01:41 PM -- Cabell Hodge, representing the Colorado Energy Office, testified in support of the bill. He provided an example of the bill's impact on small propane businesses and stated that the bill would approve the process of taxing propane.

01:44 PM

Senator Scott wrapped up his presentation of the bill. Committee members discussed the routing of the bill.


BILL:	HB15-1228
TIME:	01:44:53 PM
MOVED:	Ulibarri
MOTION:	Refer House Bill 15-1228 to the Committee on Appropriations. The motion passed on a vote of 4-0, with 1 member excused.
SECONDED:
		VOTE
	Hill	Yes
	Jones	Yes
	Ulibarri	Yes
	Sonnenberg	Excused
	Scott	Yes


Final YES: 4 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS