Final
BILL SUMMARY for HB05-1220

HOUSE COMMITTEE ON FINANCE

Votes:
Action Taken:
Moved amendment L.002. (The amendment changes the
Refer HB 05-1220, as amended, to the Committee on 		Pass Without Objection
PASS


12:27 PM -- House Bill 05-1220 - Concerning the Sales Tax Rate on Certain Commercial Vehicles

Representative Vigil, prime sponsor, distributed amendment L.002 (Attachment E) and a Legislative Council Staff memorandum on the impact of L.002 (Attachment F) to committee members. Representative Vigil explained that amendment L.002 delays the effective date of the bill one year and makes it effective on July 1, 2007. He explained that current law refunds a portion of the state's excess revenues under TABOR by reducing the sales tax on trucks weighing over 26,000 pounds when excess state revenues exceed a certain level. When first enacted, the level was $350 million, for FY 2007-08, when the refund would next be triggered, the level is projected to be $483 million. This bill repeals the TABOR refund mechanism and substitutes a permanent reduction in the sales taxes paid on interstate trucks weighing over 26,000 pounds. Beginning January 1, 2006, the tax would be based on the prorated number of miles driven in this state, as indicated by actual miles driven by similar vehicles in a company's fleet in the prior year. The bill requires that an interstate fleet be registered with the International Registration Plan (IRP) for at least one year before the sales tax may be prorated.

The following persons testified:

12:36 PM -- Mr. Greg Fulton, Colorado Motor Carriers Association, distributed a map showing state sales taxes on tractors and trailers used in interstate commerce (Attachment G), a paper entitled "Colorado Taxes versus Other States" (Attachment H), and a table on motor carriers listed by revenue ranking (Attachment I) to committee members and testified in support of the legislation. Mr. Fulton commented that Colorado trucking companies bear the fourth highest tax burden in the nation and that Colorado's annual registration fees for trucks are among the highest in the country. House Bill 05-1220 will lower the tax burden that trucking companies have when operating in Colorado. Mr. Fulton noted that trucking jobs cannot be taken offshore and are an economic benefit to Colorado.

12:48 PM -- Mr. Bruce Holder, HVH Transportation, testified in support of the legislation.

The committee briefly discussed whether House Bill 05-1220 would bring back trucking companies to Colorado that have moved out of the state.

12:52 PM -- Mr. Mike Willits, Willits Grand Trucking, testified in support of the legislation.

12:53 PM -- Mr. Joe Melody, Vice President and General Manager for Transco, testified in support of the legislation.
BILL:HB05-1220
TIME: 12:58:43 PM
MOVED:Vigil
MOTION:Moved amendment L.002. (The amendment changes the effective date from January 1, 2006, to July 1, 2007.) The motion passed without objection by those members present.
SECONDED:Garcia
VOTE
Benefield
Cloer
Crane
Frangas
Garcia
Jahn
Marshall
Massey
May M.
McCluskey
Witwer
Judd
Vigil
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection
BILL:HB05-1220
TIME: 12:59:37 PM
MOVED:Vigil
MOTION:Refer HB 05-1220, as amended, to the Committee on Appropriations. The motion passed on a 12-1-0 vote.
SECONDED:Cloer
VOTE
Benefield
Yes
Cloer
Yes
Crane
Yes
Frangas
Yes
Garcia
No
Jahn
Yes
Marshall
Yes
Massey
Yes
May M.
Yes
McCluskey
Yes
Witwer
Yes
Judd
Yes
Vigil
Yes
Final YES: 12 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS



01:02 PM

Adjourn.