I_LOCC_TPTF_2022A 07/18/2022 09:22:43 AM Committee Summary PUBLICSTAFF SUMMARY OF MEETINGINTERIM COMMITTEE LEGISLATIVE OVERSIGHT COMMITTEE CONCERNING TAX POLICY & TASK FORCE Date 07/18/2022 Attendance Bird X Kolker * Liston E Woog * Benavidez * Hansen X Time 09:22:43 AM to 03:04:10 PM Place SCR 357 This Meeting was called to order by Hansen This Report was prepared by Katie Ruedebusch Hearing Items Action Taken hPresentation on Severance Taxes Committee Discussion Only hPresenation on the Sales and Use Tax and the Taxation of Services Committee Discussion Only hPresentation of Tax Expenditure Reports from Office of the State Auditor Committee Discussion Only hConsideration of Task Force's Scope Committee Discussion Only hBreak Committee Discussion Only 09:24:44 AM Senator Hansen called the committee to order and discussed the agenda. Presentation on Severance Taxes - Committee Discussion Only Attachment Tag File Name Attachment A http://www2.leg.state.co.us/CLICS/CLICS2022A/commsumm.nsf/0/87670F6E7DA4...$File/Attachment A.pdf?OpenElement Attachment A.pdf 09:25:54 AM Ms. Meredith Moon, representing the Office of State Planning and Budgeting, gave a brief overview of severance taxes. She included a presentation (Attachment A) detailing severance taxes on minerals, oil & gas, severance tax volatility, Colorado oil & gas production and employment, and oil and gas basins. 09:30:37 AM Ms. Moon answered questions from the committee on severance taxes throughout her presentation. Presenation on the Sales and Use Tax and the Taxation of Services - Committee Discussion Only Attachment Tag File Name Attachment B http://www2.leg.state.co.us/CLICS/CLICS2022A/commsumm.nsf/0/8AD7BC3107E8...$File/Attachment B.pdf?OpenElement Attachment B.pdf 10:02:40 AM Ms. Esther van Mourik, representing the Department of Revenue, gave a presentation on the State Sales and Use Taxation of Services (Attachment B). 10:08:58 AM Ms. Van Mourik gave an overview of the background, current law in Colorado, administrative complications, expansion of the state's sals tax to services, tangible personal property services, real property services, personal and professional services, possible practical issues, and possible legal issues. 10:12:11 AM Ms. Van Mourik answered questions and gave clarification throughout her presentation. Some questions included vertical integration, services to tax, approaches in different states, and other issues. Presentation of Tax Expenditure Reports from Office of the State Auditor - Committee Discussion Only Attachment Tag File Name Attachment C http://www2.leg.state.co.us/CLICS/CLICS2022A/commsumm.nsf/0/FB31BFCE172E...$File/Attachment C.pdf?OpenElement Attachment C.pdf 10:48:16 AM Mr. Trey Standley, Office of the State Auditor (OSA), introduced himself and gave a brief overview of the OSA's presentation. 10:49:43 AM The OSA started their presentation (Attachment C) and gave an overview of the OSA process. 10:54:29 AM Mr. Standley answered questions from the committee on the OSA five year evaluation process and current statutes. 10:55:25 AM Mr. Stadley gave an overview of the tax expenditures by the OSA with policy considerations. 11:01:43 AM Mr. Stadley answered questions from the committee about the tax expenditures reviewed by the OSA. 11:07:31 AM Mr. Stadley gave an overview of the enterprise zone tax expenditures. 11:13:28 AM Mr. Stadley answered questions on zone designation and credits from the committee. 11:21:28 AM Mr. Stadley gave an overview of businesses and enterprise zone credits and answered questions from the committee. 12:35:13 PM The committee briefly recessed for lunch. 12:39:42 PM The committee came back to order. Ms. Meghan Westmoreland, Office of the State Auditor, gave a brief overview of childcare contribution credit and recommendations to the General Assembly. 12:41:19 PM Ms. Westmoreland answered questions from the committee. 12:47:34 PM Ms. Westmoreland gave a brief overview of corporate condemnation capital gains income tax deduction. 12:56:08 PM Ms. Westmoreland answered questions from the committee. 01:00:30 PM Mr. Dakota Peterson, Office of the State Auditor, gave a brief overview of Colorado Alternative Minimum Tax Credit. 01:01:19 PM Mr. Peterson answered questions from the committee. 01:04:48 PM Mr. Peterson gave a brief overview of Downloaded Software Exemption. 01:17:15 PM Mr. Peterson and Mr. Standley answered questions from the committee. 01:24:46 PM Mr. Peterson gave a brief overview of the aircraft used in interstate commerce exemption. 01:41:45 PM Mr. Peterson and Mr. Standley answered questions from the committee. 01:42:09 PM Ms. Kim Tinnell and Ms. Jacquelyn Combellick, Office of the State Auditor, presented on severance taxes including oil and gas severance tax and ad valorem credit and stripper wells. 01:53:28 PM Ms. Tinnell answered questions about stripper wells. 01:53:47 PM Ms. Tinnell gave a brief overview of the evaluation of the impact assistance credits. 01:56:44 PM The committee took a brief recess. 02:00:45 PM The committee came back to order. 02:09:43 PM Ms. Jacquelyn Combellick, Office of the State Auditor, gave a brief overview of oil shale expenditures. 02:10:38 PM Ms. Combellick answered questions from the committee. 02:12:58 PM Ms. Combellick gave a brief overview of metallic minerals threshold exemption. 02:14:37 PM Ms. Combellick answered questions from the committee. 02:15:46 PM Ms. Combellick gave a brief overview of the metallic minerals ad valorem credit. 02:24:10 PM Ms. Combellick answered questions from the committee. 02:27:18 PM Ms. Combellick gave a brief overview of molybdenum ore tonnage exemption. 02:33:20 PM The committee determined that the Office of the State Auditor will finish their presentation on insurance premium tax exemptions at the committee's meeting on August 12. Consideration of Task Force's Scope - Committee Discussion Only 02:36:01 PM The committee took a brief recess. 02:36:51 PM The committee came back to order. Mr. Greg Sobetski, Legislative Council Staff, gave an overview of the written scope of tax policy for task force. The members worked with Mr. Sobetski to convey the tax policies the committee would like to prioritize. 02:40:32 PM The committee discussed the task force's scope and priorities. 02:49:40 PM Mr. Sobetski read the draft scope concerning tax policy into the record. 03:01:57 PM Committee members confirmed they agree on the draft and will sign it within the next few days. 03:03:07 PM The committee discussed further meetings. Break - Committee Discussion Only 03:04:10 PM The committee adjourned.
