Date: 03/02/2006

Final
BILL SUMMARY for HB06-1275

HOUSE COMMITTEE ON FINANCE

Votes: View--> Action Taken:
Moved amendment L.001 (the amendment removes the f
Moved to amend amendment L.001; page 2, strike li
Refer House Bill 06-1275, as amended, to the Commi		Pass Without Objection
Pass Without Objection
PASS


10:01 AM -- House Bill 06-1275 - Concerning Property Taxes for Wind Generation Facilities

Representative McKinley, prime sponsor, explained the provisions of the bill and distributed amendment L.001 (Attachment B). Representative McKinley said that the bill requires the state property tax administrator to use the income approach in determining the actual value of wind energy property. The actual value of a wind energy property shall be equal to 1.7 times the selling price at the interconnection meter.

The committee briefly discussed the bill as introduced. Representative McKinley said the bill specifies that the location of a wind energy facility on real property (most commonly agricultural property) shall not affect the classification of that property for purposes of determining its actual value. The bill states that a value for personal property used in a wind energy property shall be assigned only when the personal property is first put into use by the facility. The bill provides that no more than 5 percent of the installed cost for personal property be assessed in the event that the property is taken out of service and no wind energy is produced for the preceding year.

Representative McKinley explained that amendment L.001 removes the fiscal impact of House Bill 06-1375 for FY 2006-07 and FY 2007-08 which resulted from the state backfill requirement under the school finance act. The committee discussed the amendment and its effect on the legislation.

The following persons testified:

10:18 AM -- Ms. JoAnn Groff, State Property Tax Administrator, responded to committee questions and distributed a memorandum from the division that addresses House Bill 06-1275 (Attachment C). The committee discussed amendment L.001 and its effect on the property tax process and whether the bill as amended, would be constitutional. A discussion on uniform taxation and the fiscal note followed. The committee closed the discussion by talking about the income method used to assess new wind generation facilities under the legislation.

10:38 AM -- Mr. Patrick Boyle, Colorado Assessors Office, responded to committee questions and testified in opposition toward the bill. Mr. Boyle commented on his concern regarding the amendment and the potential to have similar wind farm operations taxed differently.

10:43 AM -- Mr. Landon Gates, Colorado Farm Bureau, testified n favor of the legislation and responded to committee questions.

10:47 AM -- Mr. John Stulp, representing himself as a current wind farm operator in Lamar, discussed the potential benefits of House Bill 06-1275 in terms of economic development. The legislation can work to stimulate the rural economy in Southeastern Colorado. Mr. Stulp testified in support of the legislation and closed by urging the committee to support the legislation.

10:54 AM -- Mr. Doug Carter, Invenergy, testified in support of the bill and distributed a memorandum from Justice Jean Dubofsky (Attachment D). Mr. Carter and the committee discussed the bill as amended and issues on uniform taxation.

11:02 AM -- Mr. Chip Taylor, Colorado Counties Incorporated, responded to committee questions.

11:06 AM -- Mr. Tom Factor, FPL Energy, testified in support of the legislation and responded to committee questions on wind generation facilities.

11:09 AM -- Mr. David Foy, Washington County, testified in support of the legislation and discussed the potential for economic development under the bill.

11:13 AM -- Ms. Patty Silverstein, Development Research Partners, testified in support of the legislation and commented on the importance of supporting renewable energy in Colorado. Ms. Silverstein closed by commenting on the impact that new wind energy facilities have on job creation, tax revenue, and the community. This legislation could result in employment for 290 construction workers in northern Colorado.

11:19 AM -- Mr. Jack McLavey, Logan County, testified in support of the legislation and asked the committee to vote for House Bill 06-1275.

11:22 AM -- Mr. Dean Koester, Plateau Schools, testified in support of the legislation. Mr. Koester said that the bill will help counties and school districts raise tax revenue.

11:24 AM -- Mr. Phil Schumacker, Peets Farm Coop Co., testified in support of the legislation.

11:28 AM -- Mr. Brent Orr, Wort Farms, testified in support of the bill.

11:33 AM -- Mr. Gene Millbrand, Prowers County, testified in support of the legislation and commented on wind generation facility operations in the county. Prowers County is home to the fifth largest wind farm in Colorado. Mr. Millbrand closed by commenting on the secondary economic benefits that are tied to wind generation facilities.

Representative McKinley distributed a staff memorandum on the fiscal assessment of amendment L.001 (Attachment E). Mr. Tom Dunn, Legislative Council Staff, and fiscal analyst, responded briefly to questions about the impact of the amendment on the bill. Mr. Dunn commented that the amendment removes the fiscal impact for FY 2006-07 and FY 2007-08. After a brief committee discussion, the bill was placed on the table for action.
BILL:HB06-1275
TIME: 11:38:29 AM
MOVED:Jahn
MOTION:Moved amendment L.001 (the amendment removes the fiscal impacts for FY 2006-07 and FY 2007-08). After the following amendment to amendment L.001 was adopted, this motion passed without objection by those members present.
SECONDED:Judd
VOTE
Benefield
Cloer
Crane
Frangas
Garcia
Harvey
Jahn
Kerr
Marshall
Excused
Massey
McCluskey
Judd
Vigil
Not Final YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection
BILL:HB06-1275
TIME: 11:38:52 AM
MOVED:Judd
MOTION:Moved to amend amendment L.001; page 2, strike lines 1 through 4 and substitute the following: "FACTOR ANNUALLY ESTABLISHED BY THE ADMINISTRATOR. THE TAX FACTOR SHALL BE A NUMBER". The amendment passed without objection by those members present.
SECONDED:Vigil
VOTE
Benefield
Cloer
Crane
Frangas
Garcia
Harvey
Jahn
Kerr
Marshall
Excused
Massey
McCluskey
Judd
Vigil
Not Final YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection
BILL:HB06-1275
TIME: 11:44:53 AM
MOVED:Judd
MOTION:Refer House Bill 06-1275, as amended, to the Committee of the Whole. The motion passed on a 12-0-1 vote.
SECONDED:Jahn
VOTE
Benefield
Yes
Cloer
Yes
Crane
Yes
Frangas
Yes
Garcia
Yes
Harvey
Yes
Jahn
Yes
Kerr
Yes
Marshall
Excused
Massey
Yes
McCluskey
Yes
Judd
Yes
Vigil
Yes
Final YES: 12 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS



11:49 AM

Adjourn.