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I_LOCC_TPTF_2022A 07/18/2022 09:22:43 AM Committee Summary

PUBLIC
STAFF SUMMARY OF MEETING
INTERIM 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
Presentation on Severance Taxes Committee Discussion Only
Presenation on the Sales and Use Tax and the Taxation of Services Committee Discussion Only
Presentation of Tax Expenditure Reports from Office of the State Auditor Committee Discussion Only
Consideration of Task Force's Scope Committee Discussion Only
Break 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


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


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


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.






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