I_LOCC_TPTF_2021A 08/27/2021 09:04:55 AM Committee Summary

PUBLIC
STAFF SUMMARY OF MEETING
INTERIM COMMITTEE LEGISLATIVE OVERSIGHT COMMITTEE CONCERNING TAX POLICY & TASK FORCE

Date

08/27/2021

Attendance
Bird	E
Kolker	E
Liston	X
Woog	X
Hansen	X
Benavidez	X

Time

09:04:55 AM to 02:17:28 PM

Place

HCR 0112

This Meeting was called to order by

Benavidez

This Report was prepared by

Luisa Altmann

Hearing Items	Action Taken
hSacramental Wines Excise Tax Exemption	Committee Discussion Only
hExemption for Alcoholic Beverages Originating Outside the U.S.	Committee Discussion Only
hExcise Tax Credit for Unsalable Alcoholic Beverages	Committee Discussion Only
hOccasional Sale of Liquor by Public Auction Exemption	Committee Discussion Only
hCrop Hail Insurance Premium Tax Exemption	Committee Discussion Only
hIn-State Investment Pre-1959 Premium Tax Deduction	Committee Discussion Only
hUnauthorized Insurance Premium Tax Expenditures	Committee Discussion Only
hConstruction and Building Materials Exemption	Committee Discussion Only
hSchool Sales Exemptions	Committee Discussion Only
hFood Service Employer-Provided Meals Exemption	Committee Discussion Only
hPrefabricated Homes Exemptions	Committee Discussion Only
hFarm Close-Out Sales Tax Exemption	Committee Discussion Only
hSales to Charitable Organizations Exemption	Committee Discussion Only
hComplimentary Marketing Property to Out-of-State Vendees Exemptions	Committee Discussion Only
hLunch	Committee Discussion Only
hMaterials Used in Ore Manufacturing and Processing Exemption	Committee Discussion Only
hAircraft Used in Interstate Commerce Exemption	Committee Discussion Only
hPrecious Metal Bullion and Coin Exemption	Committee Discussion Only
hFood for Home Consumption and Retirement Communities Exemption	Committee Discussion Only
hFood Ingredients Exemption	Committee Discussion Only
hMachinery Used in Manufacturing Exemption	Committee Discussion Only
hPre-Press Printing Exemption	Committee Discussion Only
hCommittee Discussion	Committee Discussion Only

Sacramental Wines Excise Tax Exemption - Committee Discussion Only


	09:06:40 AM	Trey Standley and James Taurman, representing the Office of the State Auditor, provided an overview of the day's agenda. The documents referred to throughout the day can be found here: http://leg.colorado.gov/sites/default/files/images/committees/2017/osa_te_reports_for_tax_policy_committee_8.2021.pdf http://leg.colorado.gov/sites/default/files/images/committees/2017/osa_policy_considerations_for_tax_policy_committee_8.2021.pdf
	09:08:13 AM	Mr. Taurman discussed the sacramental wines excise tax exemption.

Exemption for Alcoholic Beverages Originating Outside the U.S. - Committee Discussion Only


	09:12:57 AM	Mr. Taurman discussed the exemption for alcoholic beverages originating outside the U.S. and responded to questions from the committee regarding the exemption. Senator Hansen requested information about alcohol excise tax rates in other states. Information requested by Senator Hansen can be found here: https://leg.colorado.gov/agencies/legislative-council-staff/liquor-tax https://taxfoundation.org/state-distilled-spirits-taxes-2021/ https://taxfoundation.org/state-beer-taxes-2021/ https://taxfoundation.org/state-wine-taxes-2021/ Committee discussion ensued on topics concerned the amount of the exemption and enforcement.

Excise Tax Credit for Unsalable Alcoholic Beverages - Committee Discussion Only


	09:33:22 AM	Mr. Taurman discussed the excise tax credit for unsalable alcoholic beverages. Committee discussion ensued.

Occasional Sale of Liquor by Public Auction Exemption - Committee Discussion Only


	09:39:42 AM	Mr. Taurman discussed the occasional sale of liquor by public auction exemption.

Crop Hail Insurance Premium Tax Exemption - Committee Discussion Only


	09:42:53 AM	Mr. Taurman provided background regarding how insurance premiums are collected and responded to questions from the committee. Mr. Taurman discussed the crop hail insurance premium tax exemption.

In-State Investment Pre-1959 Premium Tax Deduction - Committee Discussion Only


	09:47:08 AM	Mr. Taurman discussed the in-state investment pre-1959 premium tax deduction and responded to questions from the committee.

Unauthorized Insurance Premium Tax Expenditures - Committee Discussion Only


	09:50:24 AM	Mr. Taurman discussed several types of unauthorized insurance premium tax expenditures, including the federal premium, excise, and stamp tax deduction; the independently-procured insurance exemption; and the educational and scientific institution life insurance exemption.

Construction and Building Materials Exemption - Committee Discussion Only


	09:58:07 AM	Mr. Standley provided background on sales and use taxes in Colorado. Committee discussion ensued.
	10:10:39 AM	Mr. Standley discussed the construction and building materials sales and use tax exemption. Committee discussion ensued regarding the exemption.
	10:32:58 AM	The committee took a brief recess.
	10:44:12 AM	The committee reconvened.

School Sales Exemptions - Committee Discussion Only


	10:45:34 AM	Mr. Standley discussed several types of school sales sales and use tax exemptions, including the sales to private schools exemption, the parent teacher associations and organizations exemption, and the school related sales exemption. Mr. Standley responded to questions from the committee.

Food Service Employer-Provided Meals Exemption - Committee Discussion Only


	11:01:42 AM	Mr. Standley discussed the food service employer-provided meals sales and use tax exemption.

Prefabricated Homes Exemptions - Committee Discussion Only


	11:08:25 AM	Mr. Standley discussed the prefabricated homes sales and use tax exemptions, including the prefabricated homes partial exemption, the manufactured homes exemption, and the subsequent home sales exemption. Mr. Standley responded to questions from the committee.

Farm Close-Out Sales Tax Exemption - Committee Discussion Only


	11:34:53 AM	Mr. Standley discussed the farm close-out sales tax exemption. Mr. Standley responded to questions from the committee.

Sales to Charitable Organizations Exemption - Committee Discussion Only


	11:45:59 AM	Mr. Standley discussed the sales to charitable organizations sales and use tax exemption. Committee discussion ensued.

Complimentary Marketing Property to Out-of-State Vendees Exemptions - Committee Discussion Only


	11:53:32 AM	Mr. Standley discussed the complimentary marketing property to out-of-state vendees sales and use tax exemptions.

Lunch - Committee Discussion Only


	11:57:23 AM	The committee recessed for lunch.
	01:06:21 PM	The committee reconvened.

Materials Used in Ore Manufacturing and Processing Exemption - Committee Discussion Only


	01:06:45 PM	Kim Tinnell, representing the Office of the State Auditor, discussed the materials used in ore manufacturing and processing sales and use tax exemption. Ms. Tinnell responded to questions from the committee.

Aircraft Used in Interstate Commerce Exemption - Committee Discussion Only


	01:14:26 PM	Ms. Tinnell discussed the aircraft used in interstate commerce sales and use tax exemption.

Precious Metal Bullion and Coin Exemption - Committee Discussion Only


	01:23:43 PM	Ms. Tinnell discussed the precious metal bullion and coin sales and use tax exemption.

Food for Home Consumption and Retirement Communities Exemption - Committee Discussion Only


	01:27:44 PM	Ms. Tinnell discussed the food for home consumption and food for retirement communities sales and use tax exemptions. Committee discussion ensued.

Food Ingredients Exemption - Committee Discussion Only


	01:35:34 PM	Ms. Tinnell discussed the food ingredients sales and use tax exemption.

Machinery Used in Manufacturing Exemption - Committee Discussion Only


	01:38:29 PM	Ms. Tinnell described the machinery used in manufacturing sales and use tax exemption. Ms. Tinnell responded to questions from the committee.

Pre-Press Printing Exemption - Committee Discussion Only


	01:49:54 PM	Ms. Tinnell discussed the pre-press printing sales and use tax exemption. Committee discussion ensued.

Committee Discussion - Committee Discussion Only


	01:57:16 PM	Ed DeCecco, representing the Office of Legislative Legal Services, responded to questions from the committee regarding future bill drafting and discussed several items for the committee's consideration.
	02:10:29 PM	Committee discussion ensued.
	02:10:43 PM	The committee discussed future meetings.

02:17:28 PM

The committee adjourned.