B242B4CC523D58208725845B006F61EA Hearing Summary

Esther van Mourik, Office of Legislative Legal Services, briefed the committee regarding the processes for requesting draft legislation, as well as constitutional constraints on the legislature's ability to enact, without voter approval, a tax policy change directly causing a net tax revenue gain to any district. In particular, she explained that she could not provide legal guidance regarding voter approval requirements for specific legislation until after the bill is drafted and a fiscal note is prepared.

Ms. van Mourik requested permission from the committee to combine multiple bill draft requests in single bill drafts where this could be accomplished within the constitutional single subject requirement. The committee approved this request without objection.

The committee proceeded to discuss requests for bill drafts. Motions were made as shown below and discussed by committee members.

The committee discussed drafting legislation concerning the non-profit transit agency fuel tax exemption. Representative Bockenfeld moved that the committee draft legislation to expand the exemption, however, the motion lost because no second was offered.

The committee discussed the newspapers exemption, and concluded that it will not draft legislation concerning this exemption.

The committee discussed drafting legislation concerning the agricultural inputs sales tax exemption. The committee asked staff to draft a letter to refer discussion of this exemption to the Joint Agriculture Committee. The letter will be drafted for the committee's consideration at its October 30 meeting.

The committee discussed insurance premium tax expenditures, and decided not to draft legislation concerning these expenditures.

The committee discussed the child care expenses income tax credits. Representative Benavidez moved to expand one or both state child care expenses credits to provide an income tax benefit to taxpayers who currently do not qualify for the low income child care expenses credit and who currently do not receive a significant benefit from the child care expenses credit.

The committee discussed the state income tax refund deduction for individuals, estates, and trusts, and decided not to draft legislation concerning this deduction.

The committee discussed the sales tax exemption for sales to charitable organizations, and decided not to draft legislation concerning this exemption.

The committee discussed the rural and frontier healthcare preceptor credit, and decided not to draft legislation concerning this credit.

The committee discussed the tax-exempt organization insurance premium tax deduction, and decided not to draft legislation concerning this deduction.

The committee discussed drafting legislation concerning the codification of future review of OSA tax expenditure evaluations. In particular, the committee discussed either extending the current Tax Expenditure Evaluation Interim Study Committee or creating a Tax Commission to provide constant oversight of the tax system.