Final
STAFF SUMMARY OF MEETING
HOUSE
COMMITTEE ON
FINANCE
Date:
02/17/2005
ATTENDANCE
Time:
11:18 AM
to
01:02 PM
Benefield
*
Cloer
*
Place:
HCR 0107
Crane
X
Frangas
X
This Meeting was called to order by
Garcia
X
Representative
Vigil
Jahn
X
Marshall
X
This Report was prepared by
Massey
X
Ron Kirk
May M.
X
McCluskey
X
Witwer
X
Judd
X
Vigil
X
X = Present, E = Excused, A = Absent, * = Present after roll call
Bills Addressed:
Action Taken:
HB05-1232
HB05-1275
HB05-1220
Amended, Referred to the Committee of the Whole
Referred to the Committee of the Whole
Amended, Referred to Committee on Appropriations
11:20 AM -- House Bill 05-1232 - Concerning the Earned Income Tax Credit
Representative Boyd, prime sponsor, explained the provisions of the bill. She explained that under current law, Colorado provides a TABOR refund mechanism equal to 10 percent of the federal earned income tax credit (EIC) in years in which the state is required to refund excess TABOR revenue. This bill increases the value of the state earned income tax credit to 15 percent for the 2005 income tax year, and to 20 percent beginning with the 2006 income tax year. Additionally, the bill makes the earned income tax credit permanent, except that in years in which the state is required to refund excess state revenue, the amount of the earned income tax credit claimed would constitute a method of refunding excess TABOR revenue.
The following persons testified:
11:24 AM --
The following persons testified as a group in support of House Bill 05-1232: Ms. Evelyn Reedy; Ms. Andrea Jackson; Ms. Valerie Hawthorne Bey; Ms. Gail Santistevan; and Ms. Cheryl Feinstein. Each person commented on the different ways that moneys from the earned income tax credit have helped their families. As an example, moneys from the credit were used to pay for food, transportation, health care needs, and other vital necessities.
11:29 AM --
Ms. Chaer Robert, Women's Lobby, distributed a handout (Attachment A) on House Bill 05-1232, and testified in support of the legislation. Ms. Robert commented on the history of the legislation that initially led to enacting the earned income tax credit and discussed the many ways it benefits low-income workers. Ms. Robert asked the committee to approve House Bill 05-1232.
11:33 AM --
Mr. Spiros Protopsaltis, Policy Analyst, Bell Policy Center, distributed an issue brief on the earned income tax credit (Attachment B) and a summary sheet (Attachment C) on his testimony and spoke in favor of the legislation. Mr. Protopsaltis discussed the different people in Colorado who benefit from the earned income tax credit. He stated that the earned income tax credit is a powerful tool to encourage people to enter into the labor market and many single-mother families benefit from the credit. Representative McCluskey asked whether there is any data on the number of people who were added to the workforce in recent years from the earned income tax credit. Mr. Protopsaltis commented that national data is available but data is not collected at the state level. Mr. Protopsaltis commented that the earned income tax credit is a very powerful economic stimulus as 70 cents of every dollar received is spent on necessities.
11:47 AM --
Ms. Kathy Hartman, Stride, testified in support of the legislation and distributed a spreadsheet (Attachment D) on income and taxes paid by those persons who qualify for the earned income tax credit. Ms. Hartman commented on the number of people who use moneys from the earned income tax credit for transportation needs.
The committee closed by discussing the programs that may need to be cut in the future to support making the earned income tax credit permanent.
BILL:
HB05-1232
TIME:
11:55:41 AM
MOVED:
Garcia
MOTION:
Moved a conceptual amendment that would place a ten-year repealer on House Bill 05-1232. The motion passed on a 7-6-0 vote.
SECONDED:
May M.
VOTE
Benefield
Yes
Cloer
No
Crane
Yes
Frangas
No
Garcia
Yes
Jahn
Yes
Marshall
No
Massey
No
May M.
Yes
McCluskey
No
Witwer
Yes
Judd
Yes
Vigil
No
Not Final YES:
7
NO:
6
EXC:
0
ABS:
0
FINAL ACTION:
PASS
BILL:
HB05-1232
TIME:
12:04:54 PM
MOVED:
Cloer
MOTION:
Refer HB 05-1232, as amended, to the Committee of the Whole. The motion passed on a 13-0-0 vote.
SECONDED:
Marshall
VOTE
Benefield
Yes
Cloer
Yes
Crane
Yes
Frangas
Yes
Garcia
Yes
Jahn
Yes
Marshall
Yes
Massey
Yes
May M.
Yes
McCluskey
Yes
Witwer
Yes
Judd
Yes
Vigil
Yes
Final YES:
13
NO:
0
EXC:
0
ABS:
0
FINAL ACTION:
PASS
12:06 PM -- House Bill 05-1275 - Concerning the Extension of the Brownfield Tax Credit
Representative Sullivan, prime sponsor, explained that under current law Colorado provides an income tax credit for approved environmental remediation for the purposes of redevelopment of contaminated land. The tax credit is set to expire at the end of 2005. This bill would extend the income tax credit through the end of 2010.
The following persons testified:
12:08 PM
-- Mr. Mike Beasley, Department of Local Affairs, testified in support of the legislation and discussed some of the projects that were funded by investments that qualify for the brownfield credit.
12:13 PM --
Mr. Roger Freeman, Attorney with the Environmental Community, testified in support of the legislation. Mr. Freeman commented on the number of cleanup projects that could not have been done without the state income tax credit.
12:16 PM --
Mr. Jeffrey Deckler, Colorado Department of Public Health and Environment, commented on the implementation of the credit.
BILL:
HB05-1275
TIME:
12:21:48 PM
MOVED:
McCluskey
MOTION:
Refer HB 05-1275 to the Committee of the Whole. The motion passed on a 12-1-0 vote.
SECONDED:
Frangas
VOTE
Benefield
Yes
Cloer
No
Crane
Yes
Frangas
Yes
Garcia
Yes
Jahn
Yes
Marshall
Yes
Massey
Yes
May M.
Yes
McCluskey
Yes
Witwer
Yes
Judd
Yes
Vigil
Yes
Final YES:
12
NO:
1
EXC:
0
ABS:
0
FINAL ACTION:
PASS
12:27 PM -- House Bill 05-1220 - Concerning the Sales Tax Rate on Certain Commercial Vehicles
Representative Vigil, prime sponsor, distributed amendment L.002 (Attachment E) and a Legislative Council Staff memorandum on the impact of L.002 (Attachment F) to committee members. Representative Vigil explained that amendment L.002 delays the effective date of the bill one year and makes it effective on July 1, 2007. He explained that current law refunds a portion of the state's excess revenues under TABOR by reducing the sales tax on trucks weighing over 26,000 pounds when excess state revenues exceed a certain level. When first enacted, the level was $350 million, for FY 2007-08, when the refund would next be triggered, the level is projected to be $483 million. This bill repeals the TABOR refund mechanism and substitutes a permanent reduction in the sales taxes paid on interstate trucks weighing over 26,000 pounds. Beginning January 1, 2006, the tax would be based on the prorated number of miles driven in this state, as indicated by actual miles driven by similar vehicles in a company's fleet in the prior year. The bill requires that an interstate fleet be registered with the International Registration Plan (IRP) for at least one year before the sales tax may be prorated.
The following persons testified:
12:36 PM --
Mr. Greg Fulton, Colorado Motor Carriers Association, distributed a map showing state sales taxes on tractors and trailers used in interstate commerce (Attachment G), a paper entitled "Colorado Taxes versus Other States" (Attachment H), and a table on motor carriers listed by revenue ranking (Attachment I) to committee members and testified in support of the legislation. Mr. Fulton commented that Colorado trucking companies bear the fourth highest tax burden in the nation and that Colorado's annual registration fees for trucks are among the highest in the country. House Bill 05-1220 will lower the tax burden that trucking companies have when operating in Colorado. Mr. Fulton noted that trucking jobs cannot be taken offshore and are an economic benefit to Colorado.
12:48 PM --
Mr. Bruce Holder, HVH Transportation, testified in support of the legislation.
The committee briefly discussed whether House Bill 05-1220 would bring back trucking companies to Colorado that have moved out of the state.
12:52 PM --
Mr. Mike Willits, Willits Grand Trucking, testified in support of the legislation.
12:53 PM --
Mr. Joe Melody, Vice President and General Manager for Transco, testified in support of the legislation.
BILL:
HB05-1220
TIME:
12:58:43 PM
MOVED:
Vigil
MOTION:
Moved amendment L.002. (The amendment changes the effective date from January 1, 2006, to July 1, 2007.) The motion passed without objection by those members present.
SECONDED:
Garcia
VOTE
Benefield
Cloer
Crane
Frangas
Garcia
Jahn
Marshall
Massey
May M.
McCluskey
Witwer
Judd
Vigil
Not Final YES:
0
NO:
0
EXC:
0
ABS:
0
FINAL ACTION:
Pass Without Objection
BILL:
HB05-1220
TIME:
12:59:37 PM
MOVED:
Vigil
MOTION:
Refer HB 05-1220, as amended, to the Committee on Appropriations. The motion passed on a 12-1-0 vote.
SECONDED:
Cloer
VOTE
Benefield
Yes
Cloer
Yes
Crane
Yes
Frangas
Yes
Garcia
No
Jahn
Yes
Marshall
Yes
Massey
Yes
May M.
Yes
McCluskey
Yes
Witwer
Yes
Judd
Yes
Vigil
Yes
Final YES:
12
NO:
1
EXC:
0
ABS:
0
FINAL ACTION:
PASS
01:02 PM
Adjourn.