BILL SUMMARY for HB09-1219
HOUSE COMMITTEE ON FINANCE
|Votes: View--> ||Action Taken: |
|Moved amendment L.001. The motion passed without |
Moved amendment L.002. The motion passed without
Refer House Bill 09-1219, as amended, to the Commi
|Pass Without Objection|
Pass Without Objection
10:52 AM -- House Bill 09-1219 -- Concerning Interest Paid to Taxpayers on Certain Overpayments
Representative Judd, prime sponsor, distributed amendments L.001 (Attachment C) and L.002 (Attachment D) and explained the circumstances that result in the Department of Revenue paying out interest on overpayments associated with corporate returns.
The following persons testified:
11:08 AM -- Ms. Sheryle Hutter, Equal Justice Foundation (EJF) and representing herself, testified in opposition toward the bill.
11:11 AM -- Mr. Phillip Horwitz, Colorado Department of Revenue, responded to committee questions and discussed the amendments. The department has been looking at this issue for a long time. There are three different rules for paying interest in statute and this bill will consolidate these rules into one method. Thus, the bill will change the interest calculation to one calculation for all taxpayers. Mr. Horwitz noted that under current law, for corporations that have the cash, overpayments receive a generous rate-of-return on money that is overpaid as estimated tax payments. Mr. Horwitz closed by saying that the bill will save the state some money and reduce the intentional overpayment of taxes by certain corporations.
The committee engaged in a discussion about whether the bill imposes an unfair burden on certain corporate taxpayers. Mr. Horwitz responded by discussing some of the taxpayer-related circumstances that triggered the need for the bill.
The committee continued the discussion on the taxpayer data that was used to generate the numbers for the $2.3 million in savings under the bill. Mr. Horwitz responded by saying that the bill simply brings the treatment of corporate taxpayers in line with individual taxpayers. The committee continued the discussion on the option of following federal law that would change the "prime plus three" interest rate in current state law to a lesser rate. Mr. Horwitz responded by saying that the department considered just lowering the rate but would place some taxpayers at an unfair advantage. Mr. Horwitz closed by saying that the bill will not result in taxpayers underpaying their taxes.
The bill was placed on the table for action and the following actions were taken.
|TIME: || 11:57:03 AM|
|MOTION:||Refer House Bill 09-1219, as amended, to the Committee of the Whole. The motion passed on a 9-2 vote.|
Final YES: 9 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS