BILL SUMMARY for SB09-085
SENATE COMMITTEE ON BUSINESS, LABOR AND TECHNOLOGY
|Votes: View--> ||Action Taken: |
|Moved to refer Senate Bill 09-085 to the Committee||PASS|
05:00 PM -- Senate Bill 09-085
Senator Scheffel presented Senate Bill 09-085. The bill exempts a percentage of business personal property, excluding state-assessed property, from property taxation. The bill increases the amount of the exemption every two years until all business personal property is exempt. Senator Scheffel described his reasons for sponsoring the bill and discussed the fiscal impact it would have on local governments. He stated that the exemption is phased in with enough time to give governments a chance to develop an alternative or to wean themselves from the revenue from the business personal property tax. He described negotiations with opponents of the bill and discussed changes that had been made or would need to be made to the bill.
Senator Harvey stated that it is currently cost-prohibitive for businesses to come to Colorado, and that the bill may increase tax revenue due to an increase in businesses locating in the state. Senator Foster expressed her concerns about the bill and stated that she could not support it unless the impact on revenue for local governments was addressed. Senator Scheffel addressed her concerns and discussed the possibility of delaying the exemptions. He added that the slow phasing-in of the exemptions would help local governments.
Senator Heath described his experiences as a business owner and stated that the bill was a start in a conversation that needed to be had. Senator Tochtrop thanked Senator Scheffel for bringing the bill and addressed Senator Foster's comments about sales tax. Discussion continued between Senator Tochtrop and Senator Foster.
The following individual testified:
05:19 PM -- Mark Radtke, representing Colorado Municipal League (CML) and Colorado Counties Incorporated (CCI), testified in opposition to the bill. He stated that the business personal property tax is an important revenue source for local governments. He indicated that CML and CCI would support changes to the business personal property tax if there is a backfill source for the loss of revenue to local governments, and added that CML had supported increasing the exemption amount last year. Mr. Radtke responded to questions from Senator Mitchell concerning the possibility of a tax increase proposed by local governments to replace the lost revenue.
Senator Heath made comments about the bill. Senator Scheffel made closing remarks.
|TIME: || 05:24:09 PM|
|MOTION:||Moved to refer Senate Bill 09-085 to the Committee on Finance. The motion passed on a 6-1 roll call vote.|
Final YES: 6 NO: 1 EXC: 0 ABS: 0 FINAL ACTION: PASS
The committee adjourned.