Bill Summary for Bill Number HB09-1130

Date: 04/02/2009

Final
BILL SUMMARY for HB09-1130

SENATE COMMITTEE ON LOCAL GOVERNMENT AND ENERGY

Votes: View-->	Action Taken:
Moved to refer House Bill 09-1130 to the Committee	PASS

10:14 AM -- House Bill 09-1130

Senator Isgar, sponsor, described the provisions of House Bill 09-1130 that allows the Department of Revenue to enter into an intergovernmental agreement (IGA) with counties to facilitate the collection of sales taxes. An IGA between the state and a county could also involve municipalities. The IGAs could include provisions for the sharing of costs, information, and responsibilities related to sales tax collections. The bill requires the Department of Revenue to report to the House and Senate finance committees on any IGAs it has entered into and how such agreements may have improved the sales tax collection process. He also identified counties that expressed concern about the collection of sales tax.

The following persons testified on the bill:

10:18 AM -- Chris Mendez, Colorado Counties, Inc., spoke in support of the bill. He explained that currently the state collects sales taxes for both the state and certain local governments from merchants and retailers. The local sales taxes collected by the state are only for "state-collected" local jurisdictions, which includes most counties, special districts, and municipalities that are generally non-home rule jurisdictions. He also responded to questions from the committee about the effect of the bill on the number of forms that must be filed by merchants regarding sales tax collections. He also explained that some counties have expressed concern about delays in receiving tax revenue and not receiving the amount that is due to a county.

10:30 AM -- Sallie Clark, El Paso County Board of Commission, spoke in support of the bill and described possible discrepancies in sales tax that is owed to the county and the amount of tax revenue received by the county. She explained that the introduced version of House Bill 09-1130 would have allowed counties to collect, administer, and enforce their own sales taxes.

10:37 AM -- Nicola Sapp, El Paso County Budget Director, described possible discrepancies between sales tax that is owed to the county and the amount that is paid to the county by the Department of Revenue.

10:44 AM -- Commissioner Clark responded to questions about counties and smaller municipalities that may want to enter into an IGA authorized by the bill.

10:49 AM -- Roxy Huber, Executive Director of the Colorado Department of Revenue, described partnerships between the department and local governments to improve the tax collection process. She also responded to questions from the committee concerning alternatives to improve the tax collection process.


BILL:	HB09-1130
TIME:	10:58:23 AM
MOVED:	Newell
MOTION:	Moved to refer House Bill 09-1130 to the Committee of Whole, without amendment, and with a recommendation that it be added to the consent calendar. The motion passed on a vote of 6-0
SECONDED:
		VOTE
	Cadman	Excused
	Hodge	Yes
	Kester	Yes
	Lundberg	Yes
	Newell	Yes
	Foster	Yes
	Schwartz	Yes

Not Final YES: 6 NO: 0 EXC: 1 ABS: 0 FINAL ACTION: PASS

11:00 AM

The committee recessed.