Bill Summary for Bill Number HB09-1298

Date: 03/18/2009

Final
BILL SUMMARY for HB09-1298

HOUSE COMMITTEE ON FINANCE

Votes: View-->	Action Taken:
Refer House Bill 09-1298 to the Committee on Appro	PASS

10:47 AM -- House Bill 09-1298 - Concerning Economic Development for the Trucking Industry

Representative McFadyen and Representative Gardner C., prime sponsors, explained the provisions of the bill. Representative McFadyen noted that the bill refunds a portion of state sales and use taxes paid on the sale, storage, or use of Class A motor vehicles, expands the enterprise zone 3 percent investment tax credit, and creates the Green Truck Grant Program. She continued by saying that of the top 100 trucking firms in the nation, none are headquartered in Colorado. Many neighboring states such as Utah, Kansas, and Nebraska, house a number of these firms. Representative McFadyen closed by commenting on the jobs that could be created if the bill was adopted and noted that trucking jobs on average pay about $48,000 per year.

Representative Gardner C., commented on the economic incentives in the bill and discussed the Green Truck Grant Program's reimbursements and grants.

The following persons testified:

11:12 AM -- Mr. Greg Fulton, Colorado Motor Carriers Association, testified in support of the bill and distributed a packet of handouts on state taxes and fees on new truck purchases (Attachment A). Mr. Fulton spoke to the decline in the industry in Colorado and noted that in neighboring states, trucking firms do not have to pay a sales tax on the purchase of new trucks. He mentioned that House Bill 09-1298 levels the playing field by rebating a portion of the sales taxes paid in Colorado on new truck purchases. Mr. Fulton closed by discussing the expansion of the 3 percent investment tax credit in the bill.

11:23 AM -- Mr. Galen Schaller, Concrete Express, testified in support of the bill and commented that Colorado needs to be more competitive in terms of the incentives that it provides to the trucking industry. He closed by saying that the trucking industry pays some of the highest fees in the region when doing business in Colorado.

11:28 AM -- Ms. Wendy Shupe, Colorado Motor Carriers Association, testified in support of the bill and discussed the number of employees that are part of her firm. She mentioned that new interstate trucks cost around $100,000 to purchase new and truck trailers can cost up to $40,000. These purchase prices can trigger large sales tax obligations to the state of Colorado. Ms. Shupe commented that most states that neighbor Colorado exempt the sales of commercial trucks from state sales taxes. In regard to the enterprise zone investment tax credit, Ms. Shupe noted that it is unfair that the trucking industry can not capture the same credit as other businesses claim on equipment. She closed by saying that the industry is operating at a disadvantage in Colorado.

11:33 AM -- Mr. Dan Coleman, Colorado Motor Carriers Association, testified in favor of the bill. He noted that the bill will level the playing field.

11:38 AM -- Mr. Dave Williams, Dairy Farmers of America, testified in support of the bill.

11:45 AM -- Mr. Mark Larson, Colorado Petroleum Association, testified in support of the bill and noted that the bill will pay for itself. He closed by urging the committee to support the bill.

11:50 AM


BILL:	HB09-1298
TIME:	11:50:36 AM
MOVED:	Lambert
MOTION:	Refer House Bill 09-1298 to the Committee on Appropriations. The motion passed on a 8-0 vote.
SECONDED:	Swalm
		VOTE
	Apuan	Yes
	Benefield	Excused
	Gerou	Yes
	Kefalas	Yes
	Kerr A.	Excused
	Lambert	Yes
	Roberts	Yes
	Summers	Yes
	Swalm	Yes
	Frangas	Yes
	Judd	Excused

Final YES: 8 NO: 0 EXC: 3 ABS: 0 FINAL ACTION: PASS