Date: 03/09/2015

Final
BILL SUMMARY for HB15-1234

HOUSE COMMITTEE ON AGRICULTURE, LIVESTOCK, & NATURAL RESOURCES

Votes: View--> Action Taken:
Adopt amendment L.001. The motion passed without o
Adopt amendment L.003. The motion passed without o
Adopt amendment L.004. The motion passed on a vote
Refer House Bill 15-1234, as amended, to the Commi		Pass Without Objection
Pass Without Objection
PASS
PASS



02:12 PM -- HB 15-1234

Representative Mitsch Bush, sponsor, presented House Bill 15-1234, which creates an income tax deduction for individuals and corporations that lease an agricultural asset, defined as land, crops, livestock, livestock facilities, farm equipment, grain storage, or irrigation equipment, to a beginning farmer or rancher satisfying certain qualifications. Representative Mitsch Bush distributed Amendment L.001 (Attachment B) and Amendment L.002 (Attachment C). Greg Sobetski, Colorado Legislative Council Economist, answered questions from the committee regarding the definition of a "C corporation." Esther van Mourik, Office of Legislative Legal Services, responded to questions from the committee regarding the technical aspects of the bill, including the difference between C corporations and S corporations as they relate to the income tax deduction in the bill. Committee discussion ensued regarding the application of the income tax deduction.

150309 AttachB.pdf150309 AttachB.pdf150309 AttachC.pdf150309 AttachC.pdf

02:36 PM

The following persons testified on the bill:

02:36 PM -- Bill Midcap, External Affairs Director, Rocky Mountain Farmer's Union, spoke in support of the bill. Mr. Midcap explained how the bill would attempt to increase the amount of beginning farmers and ranchers in the state by granting lessors an income tax deduction for leasing the land. Mr. Midcap responded to questions from the committee.

02:41 PM -- Nathan Weathers, Colorado Farm Bureau, spoke in support of the bill and explained how he and his family would put the income tax deduction to use. Mr. Weathers responded to questions from the committee regarding the generational transfer of his family's agricultural assets.

02:50 PM -- Jim Rubingh, Colorado Agricultural Development Authority (CADA), spoke in support of the bill and stated that the tax incentive would compliment existing beginning farmer programs. Mr. Reuben explained that the CADA beginning farmer program is one incentive that helps new farmers start, and the tax incentive program would be another avenue for new farmer to more easily enter into the industry.

03:01 PM -- Michael Baute, representing himself, spoke in support of the bill and explained how he would benefit from the income tax deduction that the bill would provide. Mr. Baute responded to questions from the committee.

03:07 PM -- Jo Stanko, representing herself and the Stanko Ranch, spoke in support of the bill and explained that she would use this tax incentive to lease out agricultural land and cattle. Ms. Stanko explained that she supports beginning farmers leasing from established farmers and ranchers and that leasing the land helps to ensure that the land remain in production.

03:20 PM -- Ken Ransford, representing himself, does not have a position on the bill but offered his expertise as a certified public accountant (CPA) to the committee and answered several questions regarding the income tax deduction provisions in the bill.

03:22 PM

Representative Mitsch Busch offered L.001 and explained the amendment.
BILL:HB15-1234
TIME: 03:22:55 PM
MOVED:Mitsch Bush
MOTION:Adopt amendment L.001. The motion passed without objection.
SECONDED:Ginal
VOTE
Arndt
Becker J.
Brown
Buck
Coram
Danielson
Ginal
Lawrence
Lebsock
Mitsch Bush
Saine
Becker K.
Vigil
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection

Representative Mitsch Bush offered L.002. Her motion was withdrawn after committee discussion on the amendment.


03:27 PM

Ms. van Mourik presented Amendment L.003 (Attachment D) to the committee and explained the amendment.

150309 AttachD.pdf150309 AttachD.pdf
BILL:HB15-1234
TIME: 03:31:23 PM
MOVED:Mitsch Bush
MOTION:Adopt amendment L.003. The motion passed without objection.
SECONDED:Saine
VOTE
Arndt
Becker J.
Brown
Buck
Coram
Danielson
Ginal
Lawrence
Lebsock
Mitsch Bush
Saine
Becker K.
Vigil
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


Representative Mitsch Bush offered Amendment L.004 (Attachment E).

150309 AttachE.pdf150309 AttachE.pdf
BILL:HB15-1234
TIME: 03:39:32 PM
MOVED:Mitsch Bush
MOTION:Adopt amendment L.004. The motion passed on a vote of 12-1.
SECONDED:Ginal
VOTE
Arndt
Yes
Becker J.
Yes
Brown
Yes
Buck
Yes
Coram
Yes
Danielson
Yes
Ginal
Yes
Lawrence
Yes
Lebsock
Yes
Mitsch Bush
Yes
Saine
No
Becker K.
Yes
Vigil
Yes
YES: 12 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS


Representative Mitsch Bush concluded her comments on the bill.

BILL:HB15-1234
TIME: 03:41:14 PM
MOVED:Mitsch Bush
MOTION:Refer House Bill 15-1234, as amended, to the Committee on Finance. The motion passed on a vote of 12-1.
SECONDED:Lebsock
VOTE
Arndt
Yes
Becker J.
Yes
Brown
Yes
Buck
Yes
Coram
Yes
Danielson
Yes
Ginal
Yes
Lawrence
Yes
Lebsock
Yes
Mitsch Bush
Yes
Saine
No
Becker K.
Yes
Vigil
Yes
Final YES: 12 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS