Bill Summary for Bill Number HB09-1093

Date: 01/28/2009

Final
BILL SUMMARY for HB09-1093

HOUSE COMMITTEE ON FINANCE

Votes: View-->	Action Taken:
Moved amendment L.001. The motion passed without Moved amendment L.002. The motion passed without Moved amendment L.003, as amended, to extend the s Refer House Bill 09-1093, as amended, to the Commi	Pass Without Objection Pass Without Objection TIE PASS

01:45 PM -- House Bill 09-1093 - Concerning Reporting Requirements for Corporate Taxpayers

Representative Levy, prime sponsor, explained the provisions of the bill and distributed a fact sheet (Attachment F), amendment L.001 (Attachment G), and amendment L.002 (Attachment H) to the committee. Representative Levy began by saying that the bill establishes administrative and auditing measures to allow the Department of Revenue (DOR) to improve compliance with Colorado's corporate income tax reporting requirements. The bill adopts definitions of a real estate investment trust and a captive real estate investment trust established by the Multistate Tax Commission. In addition, the bill requires the disclosure of transactions that are described by specific sections of the Internal Revenue Code, the Code of Federal Regulations, and DOR rules. The bill establishes penalties ranging from $15,000 to $50,000 for a company that fails to disclose these transactions. The bill also establishes penalties of up to $20,000 for material advisors that fail to disclose reportable transactions to the department.

The following persons testified:

01:56 PM -- Mr. Phillip Horwitz, Department of Revenue, responded to committee questions and began by discussing policy changes that would discourage companies from taking advantage of the tax system. The purpose of House Bill 09-1093 is to identify corporate income from in-state operations through the apportionment of income. Mr. Horwitz continued by discussing the penalties in the bill saying that they were appropriate and could be waived at the discretion by the department. The department needs the bill to know who is engaging in the type of transactions that are identified in the bill. The reporting requirements in last year's House Bill 08-1408 will allow the department to use its auditing resources more efficiently than under current law. Mr. Horwitz closed by pointing out that the advantage of the bill is that it allows for corporate disclosure.

02:06 PM -- Ms. Laura Oldright, Colorado Fiscal Policy Institute, testified in support of the bill and distributed a handout to the committee (Attachment I).

02:09 PM

The bill was placed on the table for amendment, in addition to amendments L.001 and L.002, Representative Swalm distributed amendment L.003 (Attachment J).


BILL:	HB09-1093
TIME:	02:09:26 PM
MOVED:	Benefield
MOTION:	Moved amendment L.001. The motion passed without objection by those members present.
SECONDED:	Frangas
		VOTE
	Apuan
	Benefield
	Gerou
	Kefalas
	Kerr A.
	Lambert
	Roberts
	Summers
	Swalm
	Frangas
	Judd

Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB09-1093
TIME:	02:11:28 PM
MOVED:	Frangas
MOTION:	Moved amendment L.002. The motion passed without objection by those members present.
SECONDED:	Benefield
		VOTE
	Apuan
	Benefield
	Gerou
	Kefalas
	Kerr A.
	Lambert
	Roberts
	Summers
	Swalm
	Frangas
	Judd

Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	HB09-1093
TIME:	02:18:32 PM
MOVED:	Swalm
MOTION:	Moved amendment L.003, as amended, to extend the sunset provision to 2017. After a brief committee discussion, the motion was withdrawn.
SECONDED:	Roberts
		VOTE
	Apuan
	Benefield
	Gerou
	Kefalas
	Kerr A.
	Lambert
	Roberts
	Summers
	Swalm
	Frangas
	Judd

Not Final YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: TIE


BILL:	HB09-1093
TIME:	02:29:38 PM
MOVED:	Kefalas
MOTION:	Refer House Bill 09-1093, as amended, to the Committee of the Whole. The motion passed on a 10-1 vote.
SECONDED:	Benefield
		VOTE
	Apuan	Yes
	Benefield	Yes
	Gerou	Yes
	Kefalas	Yes
	Kerr A.	Yes
	Lambert	No
	Roberts	Yes
	Summers	Yes
	Swalm	Yes
	Frangas	Yes
	Judd	Yes

Final YES: 10 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS

02:32 PM

Adjourn.