I_LOCC_TPTF_2022A 08/12/2022 09:32:32 AM Committee Summary PUBLICSTAFF SUMMARY OF MEETINGINTERIM COMMITTEE LEGISLATIVE OVERSIGHT COMMITTEE CONCERNING TAX POLICY & TASK FORCE Date 08/12/2022 Attendance Bird * Kolker X Liston X Woog X Benavidez X Hansen X Time 09:32:32 AM to 12:58:16 PM Place SCR 357 This Meeting was called to order by Hansen This Report was prepared by Katie Ruedebusch Hearing Items Action Taken hNational Perspective on Property Taxes - Lincoln Insitute of Land Policy Committee Discussion Only hHouse Bill 20-1427 & Collecting Excise Tax from Delivery Sellers Committee Discussion Only hDepartment of Revenue Committee Discussion Only hOSA Presentation on Tax Expenditure Evaluation Reports Committee Discussion Only hPublic Testimony Committee Discussion Only hCommittee Discussion: Bill Draft Requests Committee Discussion Only National Perspective on Property Taxes - Lincoln Insitute of Land Policy - Committee Discussion Only Attachment Tag File Name Attachment A http://www2.leg.state.co.us/CLICS/CLICS2022A/commsumm.nsf/0/02B862AF929B...$File/Attachment A.pdf?OpenElement Attachment A.pdf 09:33:00 AM Chair Hansen called the meeting to order. He discussed the agenda and upcoming meetings. 09:33:35 AM Ms. Bethany Paquin, representing the Lincoln Institute of Land Policy, came to the table to provide a presentation on a national perspective on property taxes. Her presentation may be found in Attachment A and online here: https://leg.colorado.gov/content/ilocctptf2022ascheduleandmeetingmaterials 09:35:42 AM She began the presentation by highlighting local governments reliance on property taxes. She noted that property taxes are the primary funding source of municipal governments as well. She discussed property tax and the funding of K-12 education. 09:44:18 AM Ms. Paquin continued by discussing Colorado's property tax burden and distinctive features of Colorado's property tax system. 09:45:16 AM She continued by discussing the residential and commercial homestead classification ratios with other metropolitan areas. She noted Colorado has a rank of 16th in the nation for per capita property tax. 09:47:39 AM In response to a committee questions, Ms. Paquin discussed a circuit breaker property tax relief program. 09:55:41 AM Mr. Greg Sobetski, Legislative Council Staff, came to the table to answer a question about Colorado's circuit-breaker property tax program, the PTC rebate, and the property tax deferal program. 09:56:28 AM Ms. Paquin continued by discussing state-imposed property tax limits and noted that Colorado is one of 18 states with assessment limits. 10:03:30 AM Ms. Paquin concluded her presentation by highlighting several resources for further information. House Bill 20-1427 & Collecting Excise Tax from Delivery Sellers - Committee Discussion Only Attachment Tag File Name Attachment B http://www2.leg.state.co.us/CLICS/CLICS2022A/commsumm.nsf/0/EF74294F2C93...$File/Attachment B.pdf?OpenElement Attachment B.pdf 10:08:06 AM Ms. Beth Oliva and Mr. Mark Triplett, representing the Premium Cigar Colation and Cigar Association of America, came to the table to discuss House 20-1427 and collecting excise tax from delivery sellers. 10:16:45 AM Mr. Triplett highlighted several documents which may be found in Attachment B and online here: https://leg.colorado.gov/content/ilocctptf2022ascheduleandmeetingmaterials 10:18:38 AM Ms. Oliva began by discussing several legal issues related to collecting excise tax from delivery sellers. 10:23:22 AM In response to a committee question concerning revenue, Mr. Triplett stated that while the association helped with fiscal estimates in other states, there is no specific fiscal analysis for Colorado. 10:29:41 AM In response to committee questions, Ms. Oliva discussed the Wayfair decision and disparate treatment 10:36:05 AM Ms. Oliva continued by addressing committee questions about different types of cigar transactions and its interaction with excise taxes. Mr. Triplett discussed invoice price and the problems associated with certain transactions. Department of Revenue - Committee Discussion Only Attachment Tag File Name Attachment C http://www2.leg.state.co.us/CLICS/CLICS2022A/commsumm.nsf/0/8BB6763A7787...$File/Attachment C.pdf?OpenElement Attachment C.pdf 10:51:43 AM Ms. Esther Van Mourik, representing the Colorado Department of Revenue, came to the table discuss the tobacco products excise task and the department's analysis of the current situation. 10:53:37 AM Ms. Van Mourik provided the committee with a memorandum from the department to the Joint Budget Committee. The memorandum may be found in Attachment C and online here: https://leg.colorado.gov/content/ilocctptf2022ascheduleandmeetingmaterials 10:54:32 AM Ms. Van Mourik discussed the department's concerns with draft proposed legislation regarding remote cigar and pipe tobacco sales as outlined in Attachment B. OSA Presentation on Tax Expenditure Evaluation Reports - Committee Discussion Only Attachment Tag File Name Attachment D http://www2.leg.state.co.us/CLICS/CLICS2022A/commsumm.nsf/0/826EA2215DF6...$File/Attachment D.pdf?OpenElement Attachment D.pdf 11:18:39 AM Mr. Trey Standley and Mr. James Taurman, representing the Office of the State Auditor, came to the table discuss the office's insurance premium tax expenditure evaluations. Their presentation may be found in Attachment D. 11:24:34 AM Mr. Taurman began by discussing insurance premium tax expenditures overall and the fraternal society exemption. 11:30:04 AM Mr. Taurman continued by discussing the evaluation of the tax-exempt organizations insurance premium tax deduction and the employee retirement plan insurance premium tax deduction. 11:36:45 AM Mr. Taurman highlighted the unauthorized insurance premium tax expenditures and several policy considerations. 11:37:59 AM Mr. Trey Standley, Office of the State Auditor, answered a committee question regarding legal analysis of whether a vote of the people is necessary for some unauthorized insurance premium tax expenditures. He also discussed certain reporting requirements. 11:43:59 AM Mr. Taurman continued by discussing the long term care insurance credit and the in-state investment pre-1969 premium tax deduction. 11:52:24 AM Mr. Taurman end his presentation by discussing the crop hail insurance premium tax expenditure. 11:52:50 AM The committee took a brief break. Public Testimony - Committee Discussion Only Attachment Tag File Name Attachment E http://www2.leg.state.co.us/CLICS/CLICS2022A/commsumm.nsf/0/9CCE35BBBE3B...$File/Attachment E.pdf?OpenElement Attachment E.pdf 12:08:55 PM The committee came back to order. 12:09:06 PM Mr. Paul Olson, representing Thrivent, testified regarding the Fraternal Society Insurance Premium Tax expenditure. Mr. Jon Herskovits, representing the Knights of Columbus, testified regarding the Fraternal Society Insurance Premium Tax expenditure. Mr. Peter Thrane, representing the American Fraternal Alliance, testified regarding the Fraternal Society Insurance Premium Tax expenditure. All the witnesses discussed packet of information distributed to the committee. The information may be found in Attachment E. Committee Discussion: Bill Draft Requests - Committee Discussion Only 12:21:45 PM Mr. Pierce Lively and Ms. Megan McCall, Legislative Legal Services, came to the table to discuss the bill draft process. Committee discussion regarding bill drafts ensued. 12:48:08 PM Motion Draft a bill on repealing infrequently or unused tax expenditures Moved Benavidez Seconded Bird Kolker Liston Woog Benavidez Hansen YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection 12:48:49 PM Motion Draft a bill a cigar excise tax matters Moved Liston Seconded Bird Kolker Liston Woog Benavidez Hansen YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection 12:49:24 PM Motion Draft a bill crop hail insurance modernization Moved Bird Seconded Bird Kolker Liston Woog Benavidez Hansen YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection 12:50:18 PM Motion Draft a bill on expansion of EITC and CTC Moved Hansen Seconded Bird Kolker Liston Woog Benavidez Hansen YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection 12:51:00 PM Motion Draft a bill on the child care facilities tax credit limited to non profits Moved Benavidez Seconded Bird Kolker Liston Woog Benavidez Hansen YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection 12:51:32 PM Motion Draft a bill on the long-term care tax credit Moved Hansen Seconded Bird Kolker Liston Woog Benavidez Hansen YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection 12:52:08 PM Motion Draft a bill on the downloaded software tax credit Moved Kolker Seconded Bird Kolker Liston Woog Benavidez Hansen YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection 12:52:46 PM Motion Draft a bill on tax expenditures on small lawn equipment Moved Hansen Seconded Bird Kolker Liston Woog Benavidez Hansen YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection 12:53:41 PM Motion Draft a bill on unauthorized tax parity issue Moved Hansen Seconded Bird Kolker Liston Woog Benavidez Hansen YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection 12:58:16 PM The committee adjourned.
