BILL SUMMARY for SB09-081
SENATE COMMITTEE ON BUSINESS, LABOR AND TECHNOLOGY
|Votes: View--> ||Action Taken: |
|Moved to refer Senate Bill 09-081 to the Committee||PASS|
04:21 PM -- Senate Bill 09-081
Senator Shaffer presented Senate Bill 09-081. The bill phases in, over a three-year period beginning on July 1, 2010, a sales and use tax exemption for machinery and machine tools in excess of $500 to be used in the state directly and predominantly for providing telephone and telegraph sales for sale or profit. He described the bill and possible changes that might be made to it. He asked that the bill be moved to the Committee on Appropriations.
Responding to a question from Senator Foster concerning the bill's impact on local governments, Senator Shaffer discussed the fiscal note for the bill. Senator Shaffer responded to questions from Senator Mitchell about implications of the bill for the competitiveness of the marketplace, and discussed the possible impact of federal stimulus funds.
The following individuals testified:
04:28 PM -- Scott Mackey, an economist at the firm of Kimbell Sherman Ellis LLP in Montpelier, Vermont, testified in support of the bill on behalf of wireless carriers. He stated that the bill would eliminate a tax on investment and discussed studies that indicated that the bill would increase direct investment. He added that the bill would be both a short-term and long-term stimulus. He responded to a question from Senator Veiga concerning whether the bill would increase investment in rural areas of Colorado.
04:37 PM -- Andrew Kaser, representing the Qwest Corporation, testified in support of the bill. He distributed a handout and map to the committee (Attachments E and F). He discussed the benefits of the bill. Responding to a question from Senator Mitchell, Mr. Kaser discussed vertical and horizontal services. Senator Harvey asked why cable companies were not included in the bill, and Senator Shaffer stated that he had been communicating with cable companies and had drafted an amendment addressing the issue, but needed more time to work on the amendment. Discussion continued.
Mr. Kaser responded to questions from Senator Foster regarding the materials he had distributed.
04:51 PM -- Stacy Sprinkle, Vice President of State Tax Policy for the Midwest Area for Verizon, testified in support of the bill. She addressed how the bill would increase investment in rural areas, and discussed potential federal stimulus funding. She stated that access to advanced communications networks is critical to all businesses and non-profits. She provided some background on the bill and noted that home rule cities such as Denver are free to adopt the measure or not.
04:56 PM -- Russell Sarazen, Senior Manager at T-Mobile USA, testified in support of the bill. He said that the telecommunications industry is a bright spot in today's economy.
Senator Shaffer made closing remarks about the bill.
|TIME: || 04:58:07 PM|
|MOTION:||Moved to refer Senate Bill 09-081 to the Committee on Appropriations. The motion passed on a 7-0 roll call vote.|
Final YES: 7 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS