Date: 01/25/2006

Final
BILL SUMMARY for HB06-1060

HOUSE COMMITTEE ON FINANCE

Votes: View--> Action Taken:
Refer House Bill 06-1060 to the Committee on ApproPASS


04:06 PM -- House Bill 06-1060

 Representative Rose, prime sponsor, explained House Bill 06-1060 modifies the definition of a "farm operation" in the statutes that govern agriculture and livestock sales and use tax exemptions to include horticultural and floricultural activities. The bill expands the number of businesses that are exempt from sales and use taxes. Representative Rose discussed the fiscal note. Extending these exemptions to horticultural and floricultural industries creates a revenue reduction from these industries. Based on the 2002 Census of Agriculture, roughly 550 businesses would gain a sales and use tax exemption on some additional machinery, equipment, and supplies. The extension of this exemption is estimated to reduce state General Fund revenue by $72,500 in FY 2006-07 for the second half of the fiscal year. For FY 2007-08, the first full fiscal year the exemption would be in place, the expected revenue reduction would total $149,000.

The following persons testified:

04:09 PM -- Mr. Mike Gilsdorf, Arapahoe Acres Nursery, testified in support of the legislation.

04:14 PM -- Mr. Matt Edmunson, Arbor Valley, testified in support of the legislation.

The committee briefly discussed the cost of the exemption in the fiscal note and commented on supply-side economics.
BILL:HB06-1060
TIME: 04:23:52 PM
MOVED:Harvey
MOTION:Refer House Bill 06-1060 to the Committee on Appropriations. The motion passed on a 10-3-0 vote.
SECONDED:McCluskey
VOTE
Benefield
Yes
Cloer
Yes
Crane
Yes
Frangas
Yes
Garcia
No
Harvey
Yes
Jahn
Yes
Kerr
Yes
Marshall
No
Massey
Yes
McCluskey
Yes
Judd
No
Vigil
Yes
Final YES: 10 NO: 3 EXC: 0 ABS: 0 FINAL ACTION: PASS



04:25 PM

The meeting adjourned.