Date: 04/30/2009

Final
BILL SUMMARY for HB09-1342

SENATE COMMITTEE ON FINANCE

Votes: View--> Action Taken:
Adopt Amendment L.009 (Attachment H). The motion
Adopt Amendment L.010 (Attachment I). The motion
Moved a conceptual amendment to eliminate the sale
Refer House Bill 09-1342, as amended, to the Commi
Pass Without Objection
PASS
FAIL
PASS


03:01 PM -- House Bill 09-1342

Senator Williams and Senator Boyd, co-prime sponsors, presented House Bill 09-1342. The bill eliminates the state sales and use tax exemption on the sale of cigarettes for two fiscal years starting on July 1, 2009, and maintains the exemption for counties, statutory municipalities, and special districts.

Senator Boyd began by stating that the legislature is looking for fiscal solutions in difficult economic times. She explained that the exemption would apply to two fiscal years, and discussed additional revenue and the fiscal note. She also discussed the vendor fee and an amendment she planned to offer. Senator Boyd explained that Colorado was unique in having a sales tax exemption for cigarettes and that other states do not have this exemption. She distributed a copy of Amendment L.009 (Attachment H) and Amendment L.010 (Attachment I) to the committee.

09SenateFin0430AttachH.pdf 09SenateFin0430AttachI.pdf

The bill sponsors responded to questions about the elimination of the tax. Committee discussion ensued about the vendor fee.


03:08 PM

Mr. Ed DeCecco, Office of Legislative Legal Services (OLLS), came to the table to discuss the bill. He responded to questions from the committee about the language on page 11 and the vendor fee. The committee continued discussing the vendor fee.

The following persons testified:

03:11 PM --
Mr. Grier Bailey, representing the Colorado Wyoming Petroleum Marketers Association, testified against the bill. He distributed a handout about cigarette taxes in Colorado (Attachment J). Mr. Bailey shared his views about the proposed amendments. He stated that the tax policy issue would have to be examined again in two years. Mr. Bailey also shared his concerns that increasing taxes may encourage more contraband activities for cigarettes, and also stated that tobacco demand has decreased one to two percent every year. He said that the majority of the individuals that smoke make under $40,000 per year and shared his concerns about addressing fiscal issues in a way that impacts these individuals.

09SenateFin0430AttachJ.pdf

03:17 PM --
Mr. Phil Horwitz, representing the Colorado Department of Revenue, responded to committee questions about the vendor fee issue.


03:19 PM

Senator Sandoval closed public testimony.
BILL:HB09-1342
TIME: 03:20:20 PM
MOVED:Heath
MOTION:Moved a conceptual amendment to eliminate the sales tax exemption for cigarettes permanently. The committee discussed this amendment and the bill sponsors also shared their thoughts. The motion failed 3-4.
SECONDED:
VOTE
Brophy
No
Heath
Yes
Isgar
Yes
King K.
No
Scheffel
No
Hudak
Yes
Sandoval
No
Not Final YES: 3 NO: 4 EXC: 0 ABS: 0 FINAL ACTION: FAIL


BILL:HB09-1342
TIME: 03:25:17 PM
MOVED:Hudak
MOTION:Adopt Amendment L.009 (Attachment H). The motion passed without objection.
SECONDED:
VOTE
Brophy
Heath
Isgar
King K.
Scheffel
Hudak
Sandoval
Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:HB09-1342
TIME: 03:26:05 PM
MOVED:Hudak
MOTION:Adopt Amendment L.010 (Attachment I). The motion passed 4-3.
SECONDED:
VOTE
Brophy
No
Heath
Yes
Isgar
Yes
King K.
No
Scheffel
No
Hudak
Yes
Sandoval
Yes
Not Final YES: 4 NO: 3 EXC: 0 ABS: 0 FINAL ACTION: PASS


BILL:HB09-1342
TIME: 03:26:32 PM
MOVED:Hudak
MOTION:Refer House Bill 09-1342, as amended, to the Committee on Appropriations. The motion passed 4-3.
SECONDED:
VOTE
Brophy
No
Heath
Yes
Isgar
Yes
King K.
No
Scheffel
No
Hudak
Yes
Sandoval
Yes
Final YES: 4 NO: 3 EXC: 0 ABS: 0 FINAL ACTION: PASS



03:26 PM

The committee adjourned.