Date: 03/02/2006

Final
BILL SUMMARY for SB06-052

SENATE COMMITTEE ON LOCAL GOVERNMENT

Votes: View--> Action Taken:
Move SB06-052 to the Committee of the Whole. The
Move to adopt prepared amendment L.001 (Attachment
Moved to adopt prepared amendment L.002 (Attachmen
PASS
Pass Without Objection
Pass Without Objection
TIE


11:03 AM -- Senate Bill 06-052

Senator Grossman, prime sponsor, introduced his bill and explained that the bill will lift the cap placed on a county sales or use taxes with the approval of the voters. Senator Grossman introduced prepared amendment L.001 (Attachment A) and explained that the amendment will require this type of tax increases to sunset after twenty years, place a cap on the amount of this tax that can be used for management and/or maintenance of open space and indicate exactly how the money from the tax increase will be divided.


11:06 AM

Steve Balcerovich, Colorado Association of Commerce and Industry (CACI), testified in opposition to SB06-052. Mr. Balcerovich explained that the tax council of CACI had concerns against the bill, and said that this bill will complicate and increase sales taxes in Colorado municipalities. Mr. Balcerovich expressed concerns that these taxes will be used to offset additional expenses at the local level. Mr. Balcerovich responded to questions and comments from the committee regarding state and local tax and the protection of parks and open space in Colorado. Discussion between Senator Grossman and Mr. Balcerovich ensued concerning whether CACI was taking a position against the bill or just the tax council of CACI. Mr. Balcerovich explained that CACI was not opposed to this bill, but that he was speaking on behalf of the CACI tax council.


11:20 AM

R.J. Hicks, Jefferson County Business Lobby, testified in opposition to SB06-052 and voiced concerns for increasing sales taxes in Colorado, specifically, that sales tax fluctuations between communities could create unequal tax burdens on businesses.


11:22 AM

Adam Eichbers, Trust for Public Land, testified in support of the bill and noted that local municipalities prefer to protect open space through local sales taxes--approved by local voters. Mr. Eichbers also spoke to the need for the 20 year sunset of such sales or use tax according to SB06-052. Mr. Eichbers addressed Senator Grossman questions regarding "de-Brucing" and whether sales tax increases could be implemented without going to the voters.


11:27 AM

Cheryl Matthews, Director of Open Space and Natural Resources, Douglas County, testified in support of SB06-052 and spoke to the need for Douglas County to increase taxes, beyond the statutory cap, so the county can continue to protect open space in Douglas County. Ms. Matthews informed the committee that protecting open space, in places like Douglas County, is becoming more expensive and that increasing local sales taxes was the most viable option--with voter approval (Attachment B).


11:30 AM

Chip Taylor, Colorado Counties Inc., testified in support of SB06-052 stating that this bill addresses some of the problems from the previous legislation that was vetoed in 2005. Mr. Taylor spoke to the tax cap addressed in the bill and clarified municipal and county tax restrictions for the committee.


11:33 AM

Senator Grossman entered closing comments to his bill and reviewed L.001 (Attachment A).
BILL:SB06-052
TIME: 11:33:45 AM
MOVED:Tochtrop
MOTION:Move to adopt prepared amendment L.001 (Attachment A).
SECONDED:
VOTE
Bacon
Entz
Jones
Kester
Tochtrop
Groff
Hanna
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection

BILL:SB06-052
TIME: 11:38:58 AM
MOVED:Tochtrop
MOTION:Moved to adopt prepared amendment L.002 (Attachment C).
SECONDED:
VOTE
Bacon
Entz
Jones
Kester
Tochtrop
Groff
Hanna
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:SB06-052
TIME: 11:40:40 AM
MOVED:Tochtrop
MOTION:Move SB06-052 to the Committee of the Whole. The motion passed on a 5-2 roll call vote.
SECONDED:
VOTE
Bacon
Yes
Entz
Yes
Jones
No
Kester
No
Tochtrop
Yes
Groff
Yes
Hanna
Yes
Final YES: 5 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS



11:41 AM

The meeting adjourned.