s_sa_2016a_2016-03-28t13:35:43z2 Hearing Summary

Date: 03/28/2016

03:59 PM -- HB16-1275



Senators Jones and Donovan, co-prime sponsors, presented House Bill 16-1275. Conditional on voter approval, this bill requires corporations filing a Colorado combined income tax return on or after January 1, 2017 to add income from affiliated corporations incorporated in tax haven jurisdictions. The bill identifies criteria for which jurisdictions are considered tax havens. The Department of Revenue (DOR) will use this criteria to determine tax havens through administrative rule. The director of the DOR may allow corporations with subsidiaries incorporated in tax havens to not report tax haven income if the subsidiary is incorporated in the tax haven for legitimate business purposes.



The bill refers a measure to the voters authorizing the state to retain and spend revenue received by the taxation of a corporation's income that is held in offshore tax havens. If the voters approve this measure, the increase in corporate income tax revenue will be transferred from the General Fund to the State Education Fund. The voter approved revenue increase is exempt from TABOR.



04:07 PM -- Michelle McCarthy, representing the Colorado Bar Association, testified in opposition to the bill.



04:10 PM -- Nikki Dobay, representing the Council on State Taxation, testified in opposition to the bill.



04:16 PM -- Rhonda Sparlin, representing the Colorado Association of Commerce and Industry, testified in opposition to the bill.



04:20 PM -- Patrick Boyle, representing the Colorado Competitive Council, testified in opposition to the bill.



04:24 PM -- Nick Colglazier, representing the Denver Metro Chamber of Commerce, testified in opposition to the bill.



04:27 PM -- Scott Froehlich, representing himself, testified in opposition to the bill.



04:32 PM -- Phillip Horwitz, representing the Colorado Department of Revenue, testified that the department does not have concerns about the bill. He responded to questions from the committee.



04:35 PM -- Richard Eidlin, representing the American Sustainable Business Council, testified in support of the bill.



04:39 PM -- Sami Ibrahim, representing Agility Solutions, testified in support of the bill.



04:42 PM -- Danny Katz, representing CoPIRG, testified in support of the bill.





04:47 PM



Senators Jones and Donovan wrapped up their presentation of the bill and asked for a favorable recommendation.