I_TaxEval_2019A 10/30/2019 10:00:00 AM Committee Summary

Representative Benavidez, chair, called the meeting to order.  The committee took a brief recess to correct technological issues.

The committee considered a draft letter requesting that the Joint Agriculture Committee review the State Auditor's evaluation of the Agricultural Inputs Sales and Use Tax Exemption.

Representative Benavidez invited members of the public to address the committee concerning draft legislation.

Brian Casey, Kallene West, Marc Solome, and Renee Bernhard testified in opposition to draft Bill 1. Mr. Casey, representing Thrivent, testified in opposition to draft Bill 1 and advocated that the committee retain the insurance premium tax exemption for fraternal organizations. He presented a letter in support of Thrivent from Habitat for Humanity of Metro Denver (Attachment A).

Ms. Bernhard, representing Foster Source, testified in opposition to draft Bill 1. She explained that her business supports foster parents and purchases insurance from Thrivent, which benefits from the insurance premium tax exemption that would be repealed under draft Bill 1.

Ms. West, representing Modern Woodmen, testified in opposition to draft Bill 1. Her organization supports youth programming in southern Colorado and also purchases insurance coverage through a fraternal organization.

Mr. Solome, representing the Knights of Columbus, testified in opposition to draft Bill 1. He presented the history of his organization, which provides insurance coverage to some of its members and their spouses.

Mr. Casey provided hard copies of a letter from the American Fraternal Alliance that he had previously sent to committee members (Attachment B) and a document entitled "Legislative History of the Fraternal Benefit Society Tax Exemption in Colorado" (Attachment C).

Michelle Colin, representing the Office of the State Auditor, testified regarding draft Bill 18, concerning the creation of a tax commission. Ms. Colin recommended that the bill be amended to clarify her office's staff assistance responsibilities on page 5, line 17, of the bill draft, and to exclude her office from the ability to receive gifts, grants, and donations as a commission member, which language begins on the bottom of page 11 of the bill draft.

The committee took a recess.

The committee took up consideration of draft legislation.

Esther van Mourik and Pierce Lively, representing the Office of Legislative Legal Services, addressed the committee regarding draft bills that could potentially be taken up by the Statutory Revision Committee.  Ms. van Mourik advised that draft Bills 6, 10, 12, and 13 address obsolete provisions in statute and could be repealed with no policy effect.  Further, she advised that draft Bill 7 addresses a tax expenditure that, while not obsolete, has never actually been claimed by a taxpayer.  None of the bills are identified as having a fiscal impact.  Ms. van Mourik advised the committee that all five bills could be taken up by the Statutory Revision Committee so as to avoid counting against the Tax Expenditure Evaluation Interim Study Committee's five bill limit.

Representative Benavidez, chair, explained that the committee would consider each of the remaining draft bills.  Because the committee was authorized to recommend only five bills to the Legislative Council, the committee would take votes on all bills and then entertain a motion to narrow the approved list of bills to five.  The committee invited Ms. van Mourik and Mr. Lively to briefly present each of the outstanding draft bills.  Ms. van Mourik and Mr. Lively provided brief summaries of each bill and responded to questions from committee members.  After each bill was presented and discussed, a vote was taken.

The committee discussed whether addressing the tax expenditure contemplated in draft Bill 4 goes beyond the scope of the committee's charge, in that it may extend to licensing and not only taxation.

Meredith Moon, representing Legislative Council Staff, testified regarding the fiscal impact of Amendment 1 to draft Bill 11. She presented her survey of hotels and motels, which found that these establishments generally do not require 30-day written agreements for long-term lodging, as contemplated in the current statute.

Larson Silbaugh, representing Legislative Council Staff, answered committee questions concerning the fiscal note for draft Bill 15.

The committee invited Loren Furman, representing the Colorado Chamber of Commerce, and Dianna Orf, representing the Colorado Mining Association, to testify regarding draft Bill 19. Ms. Orf testified that draft Bill 19 would impose a new burden on the claimant of the tax exemption by requiring the installation of a meter in all instances when the exemption is claimed. Ms. Furman testified that draft Bill 19 may make the tax exemption more complicated than the policy consideration identified by the Office of the State Auditor.

The committee took a recess.

The committee reconvened.  Representative Benavidez explained that the committee would now entertain a motion to narrow the preliminary list of approved draft bills to five, the maximum number that the committee was allowed to submit to the Legislative Council.

Ms. van Mourik advised the committee that Bill 11 ought to be introduced in the House of Representatives. The committee assigned the following sponsors for the draft bills advanced by the committee.

Bill 8: Senators Court and Tate, joint prime sponsors, and Senator Moreno, co-sponsor. Representatives Snyder and Benavidez, joint prime sponsors. The bill will originate in the Senate.

Bill 11: Representative Benavidez, prime sponsor, and Representative Snyder, co-sponsor. Senators Moreno and Court, joint prime sponsors. The bill will originate in the House of Representatives.

Bill 15: Representatives Benavidez and Snyder, joint prime sponsors. Senator Moreno, prime sponsor, and Senator Court, co-sponsor. The bill will originate in the House of Representatives.

Bill 18: Senators Court and Tate, joint prime sponsors, and Senator Moreno, co-sponsor. Representatives Benavidez and Bockenfeld, joint prime sponsors, and Representative Snyder, co-sponsor. The bill will originate in the Senate.

Bill 19: Representatives Benavidez and Snyder, joint prime sponsors. Senators Tate and Court, joint prime sponsors, and Senator Moreno, co-sponsor. The bill will originate in the House of Representatives.

Representative Benavidez, chair, thanked the committee members and staff for their work.