H_FIN_2017A 01/25/2017 Committee Summary

09:53 AM -- Introduction to Fiscal Analysts and Bill Drafters



The committee was called to order. A quorum was present. Mr. Larson Silbaugh, Legislative Council Staff, and Ms. Esther van Mourik, Office of Legislative Legal Services, introduced themselves and others from their offices who will write the fiscal notes and bills that appear most often before the committee. Mr. Silbaugh discussed the fiscal note process and the information included in prepared fiscal notes. Ms. Natalie Mullis, Legislative Council Staff, came to the table to address questions about dynamic modeling. Ms. Mullis also addressed questions about the quality of department responses to requests for fiscal information and about potential consequences associated with inaccurate fiscal notes. She explained that fiscal notes are used as a budgeting tool.





10:06 AM



Discussion continued on earlier questions raised by the committee. Ms. van Mourik discussed the role that drafters play in drafting bills and amendments and the support they can provide during committee hearings.



























10:13 AM -- Presentation by DOR of Tax Expenditures Report



Mr. Eric Hurley, Director of the Office of Research and Analysis, Department of Revenue, presented the 2016 Colorado Tax Profile and Expenditure Report. The full report can be accessed here: https://www.colorado.gov/pacific/sites/default/files/2016%20Tax%20Profile%20and%20Expenditure%20Report.pdf. Committee members received a copy of the report (available online) and a summary of report highlights (Attachment A). Mr. Hurley explained that the report is divided into three major sections: an expenditure study, a tax profile study, and Colorado individual and corporate statistics of income. He described the contents of each of the major sections of the report.



17HouseFin0125AttachA.pdf



10:21 AM



Mr. Hurley addressed questions from the committee about a table on page 7 of the report with regard to corporate income tax deductions. Discussion ensued on this topic.





10:34 AM



Discussion continued on questions about how the department calculates income tax deductions. Ms. Amber Egbert, representing the Taxation Division within the department, also responded to committee questions on the topic of income tax deductions. Mr. Hurley continued his presentation. Mr. Hurley addressed questions about how certain expenditures are listed in the report, specifically, he discussed a table beginning on page 32 of the report. Ms. Egbert commented on how certain data is collected and whether a legislative change would assist the department in collecting and reporting more information to the legislature.





10:48 AM



Committee discussion ensued about quantifying the effects of various tax expenditures. Mr. Hurley continued to address questions about the tax expenditures study section of the report. He also responded to a question about the availability of data when responding to legislator inquiries related to tax expenditures. Ms. Mullis returned to the table to address questions about how Legislative Council Staff is able to provide estimates related to tax expenditures and revenues, including information about severance tax collections.





11:00 AM



In response to a question, Mr. Hurley explained that the department sometimes reports aggregate data as a means to protect the privacy of certain taxpayers. Mr. Hurley continued his presentation with a discussion of the tax profile study section of the report and addressed further questions from the committee.





11:13 AM



The committee adjourned.