Date: 02/10/2009

Final
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
PASS



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.


11:53 AM

The bill was placed on the table for action and the following actions were taken.
BILL:HB09-1219
TIME: 11:53:55 AM
MOVED:Judd
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:HB09-1219
TIME: 11:54:55 AM
MOVED:Judd
MOTION:Moved amendment L.001. 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:HB09-1219
TIME: 11:57:03 AM
MOVED:Judd
MOTION:Refer House Bill 09-1219, as amended, to the Committee of the Whole. The motion passed on a 9-2 vote.
SECONDED:Benefield
VOTE
Apuan
Yes
Benefield
Yes
Gerou
No
Kefalas
Yes
Kerr A.
Yes
Lambert
No
Roberts
Yes
Summers
Yes
Swalm
Yes
Frangas
Yes
Judd
Yes
Final YES: 9 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS




11:59 AM

Adjourn.