Bill Summary for Bill Number HB06-1312

Date: 04/25/2006

Final
BILL SUMMARY for HB06-1312

SENATE COMMITTEE ON FINANCE

Votes: View-->	Action Taken:
Motion to adopt L.005 (Attachment C). The motion Motion to refer HB 06-1312, as amended, to the Com	Pass Without Objection TIE

04:37 PM -- House Bill 06-1312

Senator Sandoval, prime sponsor, explained the provisions of HB 06-1312 which authorizes the Department of Revenue (DOR) to issue information letters and private letter rulings to taxpayers upon written request. These letters and rulings would help taxpayers determine the tax treatment and potential tax liability of a transaction before it takes place.

The following people testified on the bill:

04:39 PM -- Mr. Chuck Berry, Colorado Association of Commerce and Industry (CACI), spoke in favor of the bill. He explained that Colorado is one of only four states where taxpayers cannot request a ruling showing the tax implications of transactions. He indicated that the bill would help the state from an economic development standpoint and that businesses would more likely enter transactions if they knew the tax implications first. Senator Shaffer inquired whether the rulings from the DOR would be binding.

Mr. Neil Pomerantz, CACI, joined Mr. Berry and indicated that a DOR ruling would be based on the specific set of circumstances of a transaction and that the ruling would only be binding if the circumstances do not change. The committee discussed circumstances in which a ruling would not be binding. Mr. Pomerantz continued by stating that tax predictability is important to taxpayers. He also thought that the estimated number of ten requests for rulings from DOR in the fiscal note was significantly low.
Senator Sandoval explained amendment L.005, which was technical in nature (Attachment C).


BILL:	HB06-1312
TIME:	05:03:45 PM
MOVED:	Sandoval
MOTION:	Motion to adopt L.005 (Attachment C). The motion passed without objection.
SECONDED:
		VOTE
	Brophy
	Shaffer
	Taylor
	Teck
	Tupa
	Veiga
	Sandoval
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB06-1312
TIME:	04:50:54 PM
MOVED:	Sandoval
MOTION:	Motion to refer HB 06-1312, as amended, to the Committee on Appropriations with favorable recommendation. The motion passed on a 7 - 0 vote.
SECONDED:
		VOTE
	Brophy	Yes
	Shaffer	Yes
	Taylor	Yes
	Teck	Yes
	Tupa	Yes
	Veiga	Yes
	Sandoval	Yes
Final YES: 7 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: TIE

04:51 PM

The committee recessed.