Date: 02/22/2006

Final
BILL SUMMARY for HB06-1279

HOUSE COMMITTEE ON FINANCE

Votes: View--> Action Taken:
Moved to postpone House Bill 06-1279 indefinitely.
Refer House Bill 06-1279 to the Committee of the W		PASS
FAIL


08:45 PM -- House Bill 06-1279 - Concerning Revenue from the Severance Tax Fund

Representative Lundberg, prime sponsor, distributed a fact sheet on House Bill 06-1279 (Attachment H) and explained the provisions of the bill. Representative Lundberg explained that for FY 2006-07 and each fiscal year thereafter, House Bill 06-1279 requires the first $200 million in state revenues from the severance tax imposed on oil shale to be credited, as it is under current law, to the Severance Tax Trust Fund and the Local Government Severance Tax Cash Fund. The bill requires that state revenues in excess of this amount, (inflation adjusted beginning in FY 2007-08) be credited as follows:

● 25 percent to the State Highway Fund for implementation of the strategic transportation project investment program; and
● 75 percent to the Property Tax Relief Cash Fund to provide tax relief in the following order of priority: (1) to taxpayers paying business personal property tax, (2) to taxpayers paying property tax on commercial real property, and (3) to taxpayers paying tax on real property.

The committee engaged in a brief discussion regarding the time period upon which the severance taxes on oil shale would yield $200 million or more.

The following persons testified:

08:58 PM -- Mr. Stan Dempsey, Colorado Petroleum Association, testified in opposition toward the bill. Mr. Dempsey commented on the uses for severance taxes that are tied to the extraction of minerals. He closed by discussing some of the policies that are being debated that spend severance tax revenues and are not tied to the tax on minerals. The state should not spend revenue generated from taxing one industry to benefit another industry.

09:02 PM -- Mr. James Thurman, Shell Oil Company, testified in opposition toward the bill. Mr. Thurman commented that it is premature to make policy changes that are dependent on future events that may or may not occur.

The committee briefly discussed a number of bills pending before the General Assembly that propose to spend severance tax revenues. Representative Vigil, Chairman, placed the bill on the table for action.
BILL:HB06-1279
TIME: 09:09:50 PM
MOVED:Cloer
MOTION:Refer House Bill 06-1279 to the Committee of the Whole. The motion failed on a 7-5-1 vote.
SECONDED:Crane
VOTE
Benefield
No
Cloer
Yes
Crane
Yes
Frangas
No
Garcia
No
Harvey
Yes
Jahn
No
Kerr
Yes
Marshall
No
Massey
Excused
McCluskey
Yes
Judd
No
Vigil
No
Not Final YES: 5 NO: 7 EXC: 1 ABS: 0 FINAL ACTION: FAIL
BILL:HB06-1279
TIME: 09:13:24 PM
MOVED:Garcia
MOTION:Moved to postpone House Bill 06-1279 indefinitely. The motion passed on a 7-5-1 vote.
SECONDED:Judd
VOTE
Benefield
Yes
Cloer
No
Crane
No
Frangas
Yes
Garcia
Yes
Harvey
No
Jahn
Yes
Kerr
No
Marshall
Yes
Massey
Excused
McCluskey
No
Judd
Yes
Vigil
Yes
Final YES: 7 NO: 5 EXC: 1 ABS: 0 FINAL ACTION: PASS



09:19 PM

Adjourn.