BILL SUMMARY for HB09-1067
HOUSE COMMITTEE ON FINANCE
|Votes: View--> ||Action Taken: |
|Moved amendment L.001. The motion passed without |
Refer House Bill 09-1067, as amended, to the Commi
|Pass Without Objection|
10:43 AM -- House Bill 09-1067 - Concerning Donations of Water Rights for Taxation Purposes
Representative Pommer, prime sponsor, explained the provisions of the bill and discussed amendment L.001 (Attachment A). Representative Pommer began by saying the bill establishes an instream flow incentive state income tax credit. The bill specifies that the Colorado Water Conservation Board (CWCB) will approve the credits by issuing certificates to water rights owners who permanently transfer water rights to the CWCB. The bill establishes a credit equal to one-half of the value of the donated water right, as determined by a qualified appraisal, with a maximum value of $250,000. The total amount of credits allowed on an annual basis is limited to $2,000,000.
The committee discussed the CWCB's program that has been in place and its performance in terms of past year donations. Representative Pommer continued to discuss the credit saying that amendment L.001 makes the credit refundable and eliminates the transferability provisions in the introduced version of the bill. The bill also specifies that the credit will not be allowed in a particular income tax year if Legislative Council's revenue forecast projects General Fund revenue will not be sufficient to maintain the 6% limit on the annual growth in General Fund appropriations. The bill also provides the Department of Revenue with rulemaking authority to administer the tax credit.
The committee continued the discussion on the refundable provisions in amendment L.001. At this time, some questions were generated and the Chairmen opened the hearing to testimony to address some of the concerns.
The following persons testified:
11:02 AM -- Ms. Linda Bassi, Colorado Water Conservation Board and the Department of Natural Resources, testified in support of the legislation. Ms. Bassi gave the committee a brief overview of the board's water right's donation program and the board's process for evaluating donations. Ms. Bassi closed by saying that water rights donations are very valuable to the state and responded to committee questions.
The committee discussed the administration of the credits through the Department of Revenue.
11:16 AM -- Mr. Phillip Horwitz, Department of Revenue, responded to committee questions and discussed the administration of the credits in the legislation.
The bill was placed on the table for action and amendment L.001 was offered. At this time Representative Pommer distributed a copy of the Healthy Rivers, Healthy Economy Study by Environmental Defense (Attachment B) and asked that copies be made available for the committee.
|TIME: || 11:20:09 AM|
|MOTION:||Refer House Bill 09-1067, as amended, to the Committee on Appropriations. The motion passed on a 9-2 vote.|
Final YES: 9 NO: 2 EXC: 0 ABS: 0 FINAL ACTION: PASS