Final
BILL SUMMARY for HB05-1294

HOUSE COMMITTEE ON FINANCE

Votes:
Action Taken:
Moved amendment L.003. (The amendment limits the
Refer HB 05-1294, as amended, to the Committee on 		Pass Without Objection
PASS


03:36 PM -- House Bill 05-1294 - Concerning A State Income Tax Credit For Commercial Vehicles In Enterprise Zones

Representative McFayden, prime sponsor, explained the provisions of the bill and distributed a Legislative Council Staff memorandum on the fiscal assessment of proposed amendment L.003 (Attachment I) to committee members. Representative McFadyen explained House Bill 05-1294 expands the 3-percent investment tax credit for new business investment to large commercial trucks. Amendment L.003 would restrict the new credit to 2005 model year vehicles or newer and sets requirements for a vehicle to be considered "housed and based" within an enterprise zone. Thus, by restricting the credit to newer year commercial vehicles, the fiscal impact is reduced.

The following persons testified:

03:46 PM -- Mr. Herb Homan, representing self, did not take a position on the legislation but commented on his concerns about the income tax credits, deductions, and tax credits being debated by the General Assembly during a year in which the legislature has little budgetary flexibility.

03:56 PM -- Mr. Greg Fulton, Colorado Motors Carriers Association, distributed a handout entitled "Colorado Taxes versus Other States" (Attachment J) to committee members and testified in support of the legislation. Mr. Fulton said that Colorado trucking companies bear the fourth highest tax burden in the nation. In 2002, a typical five-axle tractor-semitrailer combination paid $7,341 in state highway user fees and taxes. Mr. Fulton closed by commenting on the states that border Colorado that exempt truck tractors in interstate commerce from state sales taxes.

04:08 PM -- Mt. Evan Metcalf, Colorado Office of Economic Development, responded to committee questions about Colorado's enterprise zone program and discussed the program's history.

04:19 PM -- Mr.Ken Beengle, Adams County Economic Development, testified in support of the legislation and commented that House Bill 05-1294 is not a new tax credit but corrects a vital omission in the 3-percent investment tax credit.

04:28 PM -- Mr. Joe Kiely, Town Administrator for Limon, Colorado and Vice President of the Port-to-Plains Trade Corridor Coalition, distributed a handout to committee members on the "Ports-to-Plains Trade Corridor (Attachment K) and testified in support of the legislation. Mr. Kiely discussed the new jobs that would be created by the passage of House Bill 05-1294. Mr. Kiely pointed out that in manufacturing, 1,700 direct jobs would be created in Ports-to-Plains counties. In addition, 3,613 jobs would be created indirectly. Mr. Kiely closed by discussing the revenues that these new jobs would contribute to the state's coffers.

04:36 PM -- Mr. Mike Riley, Front Range Cartage, Commerce City, testified in support of the legislation. Mr. Riley discussed the costs of starting a trucking company and how House Bill 05-1294 would help start-up companies gain initial seed moneys.

04:49 PM -- Mr. Tom Lee, Mile High Frozen Foods, testified in support of the legislation and commented that Colorado has the fourth-highest taxes in the country on commercial trucks.

04:52 PM -- Mr. Scott McCandless, McCandless International Trucks of Colorado, testified in support of the legislation. Mr. McCandless mentioned that his company employes 175 employees at three facilities and closed by saying that House Bill 05-1294 would help commercial truck dealers in Colorado to expand and hire more employees in some of the more economically-depressed areas of Colorado.

04:56 PM -- Mr. Tim Jackson, Colorado Auto Dealers Association, testified in support of the legislation.

04:59 PM -- Ms. Debbie Woodward, Economic Developers' Council of Colorado, distributed a handout from the council of support for the legislation (Attachment L) and urged the committee to vote for the legislation. Ms. Woodward commented on the distressed economic areas in the state that benefit from the enterprise zone program. Ms. Woodward closed by saying the trucking industry is important to Colorado's future.

The committee briefly discussed amendment L.001. (The amendment makes the bill effective for tax year 2006 and reduces the fiscal impact of the legislation by restricting the income tax credit to 2005 model year or newer vehicles and sets requirements for a vehicle to be considered "housed and based" within an enterprise zone.) The motion passed without objection by those members present.
BILL:HB05-1294
TIME: 05:08:42 PM
MOVED:Massey
MOTION:Moved amendment L.003. (The amendment limits the credit to new commercial truck purchases.) The motion passed without objection by those members present.
SECONDED:Frangas
VOTE
Benefield
Cloer
Excused
Crane
Frangas
Garcia
Jahn
Marshall
Excused
Massey
May M.
McCluskey
Witwer
Judd
Vigil
Not Final YES: 0 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: Pass Without Objection
BILL:HB05-1294
TIME: 05:09:37 PM
MOVED:Jahn
MOTION:Refer HB 05-1294, as amended, to the Committee on Appropriations. The motion passed on a 7-4-2 vote.
SECONDED:Vigil
VOTE
Benefield
Yes
Cloer
Excused
Crane
No
Frangas
Yes
Garcia
No
Jahn
Yes
Marshall
Excused
Massey
Yes
May M.
Yes
McCluskey
No
Witwer
Yes
Judd
No
Vigil
Yes
Final YES: 7 NO: 4 EXC: 2 ABS: 0 FINAL ACTION: PASS



05:12 PM

Adjourn.