First Regular Session

Sixty-second General Assembly

LLS NO. R99­0732.01 Jane Ard­Smith

STATE OF COLORADO




BY REPRESENTATIVES Zimmerman, Scott, and Veiga


HOUSE JOINT RESOLUTION 99-1028

CONCERNING AN INTERIM STUDY OF GOVERNMENT TAX INCENTIVES FOR ECONOMIC DEVELOPMENT.

WHEREAS, The general assembly recognizes that tax incentives and public subsidies are now used to attract new development to the state and to encourage land development in particular areas; and

WHEREAS, The short­term benefit of such development may not exceed the long­term public costs of subsidizing such development; and

WHEREAS, The state government is often in the position of paying the unanticipated long­term public costs of development; now, therefore,

Be It Resolved by the House of Representatives of the Sixty­second General Assembly of the State of Colorado, the Senate concurring herein:

(1)  That there shall be a committee to meet in the interim after the First Regular Session of the Sixty­second General Assembly to study the tax incentives, subsidies, and rebates granted by the state government and by local governments for land development purposes. Such interim committee shall consist of six members of the General Assembly. Three of such members shall be from the House of Representatives, appointed by the Speaker of the House of Representatives, and three of such members shall be from the Senate, appointed by the President of the Senate. The committee shall perform the following duties:

(a)  Review the tax incentives, subsidies, rebates, and other forms of preferential tax treatment or monetary incentives granted to businesses and individuals for the purpose of developing or encouraging the development of land;

(b)  Review and discuss the fiscal impact of such development, including the estimated aggregate tax revenues generated by such development with and without such subsidies, the public costs associated with such development, and the secondary consequences that result from such development; and

(c)  Review and recommend limits on tax incentives, subsidies, rebates, and other forms of preferential tax treatment or monetary incentives for such development that are consistent with the economic contributions of such development and with the public costs associated with such development.

(2)  That, in conducting such study, the interim committee shall consult with counties, municipalities, special districts, school districts, taxpayer groups, businesses, appropriate local and state agencies, environmental groups, chambers of commerce, and interested members of the public and may hold public hearings in locations outside the Denver metropolitan area as deemed necessary for purposes of the study. The study shall not require additional staff for any state agency or any additional appropriation to any such state agency.

(3)  That the Legislative Council shall report the findings and recommendations of the interim committee to the Second Regular Session of the Sixty­second General Assembly.

(4)  That all expenditures incurred in the conduct of the study enumerated in this resolution shall be approved by the chairperson of the Legislative Council and paid by vouchers and warrants drawn as provided by law from funds allocated to the Legislative Council from appropriations made by the General Assembly.