Date: 03/19/2015

Final
BILL SUMMARY for HB15-1158

HOUSE COMMITTEE ON FINANCE

Votes: View--> Action Taken:
Adopt amendment L.003 (Attachment B). The motion p
Refer House Bill 15-1158, as amended, to the Commi		Pass Without Objection
PASS



11:00 AM -- HB15-1158

Representative Court, chair, called the meeting to order. Representative DelGrosso, co-prime sponsor, introduced House Bill 15-1158. The bill creates a sales and use tax refund for equipment used in qualified data centers. The refund can be claimed for sales and use taxes paid on equipment like computers, cables, switches, climate control, power generation, and back-up power. The refund is available for sales and use taxes paid on equipment on or after January 1, 2016. The refund must be claimed between January 1 and April 1 in the year following the year when the sales taxes were paid. The maximum refund is $3 million per year, per taxpayer. In addition to the owner or operator of a data center, tenants making qualified purchases are also eligible to claim a refund. Representative DelGrosso discussed that Colorado might be overlooked when companies are looking for places to open data centers.

Representative Pabon, co-prime sponsor, spoke to the bill. He discussed data center tax benefits offered in other states. He distributed amendment L.002 (Attachment A). He noted that the amendment changes the sales and use refund to a sales and use exemption in the bill. Committee discussion ensued on data centers, tax refunds, and other Colorado tax exemptions.

15HouseFin0219AttachA.pdf15HouseFin0219AttachA.pdf

11:18 AM

Committee discussion on data centers continued.

11:28 AM -- Mr. Al Wenstrand, representing the Colorado Springs Regional Business Alliance, testified in support of the bill. He noted that good conditions exist for Colorado to house data centers and this bill would make Colorado more competitive.

11:42 AM -- Mr. Erik Mitisek, representing the Colorado Technology Association, testified in support of the bill. He discussed data centers and their value to Colorado's technology economy.

11:46 AM -- Mr. Marty Terek and Ms. Heidi Morgan, representing Black Hills Corporation, testified in support of the bill. Mr. Terek discussed how the bill benefits the state not only through increased property taxes, but also through increased corporate and individual income taxes. Ms. Morgan discussed how the bill furthers ideals of promoting science, technology, engineering, and mathematics (STEM) jobs in Colorado.

11:53 AM -- Ms. Ali Mickelson, representing the Colorado Fiscal Institute, testified in opposition to the bill. She noted that data centers choose locations based on power, telecom infastructure, geography, and climate, not tax benefits.

12:01 PM -- Mr. Larson Silbaugh, Legislative Council Staff, came to table to discuss the fiscal impact of amendment L.002.
BILL:HB15-1158
TIME: 12:03:37 PM
MOVED:Garnett
MOTION:Adopt amendment L.003 (Attachment B). The motion passed without objection.
15HouseFin0319AttachB.pdf15HouseFin0319AttachB.pdf
SECONDED:Pabon
VOTE
Becker K.
Conti
Garnett
Pabon
Priola
Roupe
Ryden
Van Winkle
Wilson
Foote
Court
YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:HB15-1158
TIME: 12:06:03 PM
MOVED:Pabon
MOTION:Refer House Bill 15-1158, as amended, to the Committee on Appropriations. The motion passed on a vote of 7-4.
SECONDED:Van Winkle
VOTE
Becker K.
No
Conti
Yes
Garnett
Yes
Pabon
Yes
Priola
Yes
Roupe
Yes
Ryden
No
Van Winkle
Yes
Wilson
Yes
Foote
No
Court
No
Final YES: 7 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: PASS