H_FIN_2016A 03/16/2016 01:35:59 PM Committee Summary

Representative Court, chair, called the meeting to order. A quorum was present.



01:37 PM -- HB16-1194



Representatives Mitsch Bush and Becker, J., co-sponsors, introduced House Bill 16-1194. The bill creates an income tax deduction for taxpayers that lease an agricultural asset, defined as land, crops, livestock, livestock facilities, farm equipment, grain storage, or irrigation equipment, to a beginning farmer or rancher satisfying certain qualifications. The deduction is available for tax years 2017 through 2019 and is equal to 20 percent of the lease payment received from the beginning farmer or rancher for a lease of agricultural assets with a term of at least three years. Deductions are capped at $25,000 per taxpayer per tax year.



01:48 PM -- Mr. Jim Craig, representing United Veterans Committee of Colorado and Colorado Agrability, testified in support of the bill and answered committee questions.

01:59 PM -- HB16-1087



Representative Becker, J., sponsor, introduced House Bill 16-1087. The bill, as amended by the House State, Veterans, and Military Affairs Committee, increases the share of state sales tax revenue allowed to be retained by some vendors to cover their expenses for collecting and remitting the tax. For businesses remitting $75,000 or less in state sales tax during the prior calendar year, this share, known as the vendor fee, is increased from 3.33 percent under current law to 4.5 percent beginning January 1, 2018. For all other businesses, the vendor fee is not changed. Representative Becker, J. answered several committee questions.



02:09 PM -- Mr. Tony Gagliardi, representing the National Federation of Independent Business and the Coalition to Simplify Colorado Sales Tax, testified in support of the bill.



02:22 PM -- Mr. John Vecchiarelli, representing the Colorado Department of Revenue (DOR), came to the table to answer committee questions.



02:26 PM -- Ms. Mary Lou Chapman, representing the Rocky Mountain Food Industry Association, testified in support of the bill.



02:33 PM -- Mr. Grier Bailey, representing the Colorado Wyoming Petroleum Marketers Association, testified in support of the bill and answered committee questions. He distributed a handout to the committee (Attachment A).



16HouseFin0316AttachA.pdf











02:38 PM -- Ms. Ali Mickelson, representing the Colorado Fiscal Institute, testified against the bill and answered several committee questions.

03:05 PM -- HB16-1174



Representative Becker, J., sponsor, introduced House Bill 16-1174. The bill requires DOR to allow income tax credits claimed for conservation easements donated prior to January 1, 2008, unless, prior to July 1, 2016:



• the DOR and the taxpayer have reached a final settlement;

• the DOR provides clear and convincing evidence of the easement's overvaluation, which is accepted by the Attorney General; or

• the easement's appraiser has been convicted of a criminal act of misrepresentation in connection with preparation of the appraisal.



The bill also authorizes a court to terminate a conservation easement created for the purpose of claiming an income tax credit if the state has rejected the claim for the credit, the easement is appraised as having no more than a nominal value, and the easement's holder provided no compensation for donation of the easement or was reimbursed in whole for any compensation provided. Representative Becker distributed amendment L.002 (Attachment B).



16HouseFin0316AttachB.pdf



03:18 PM -- Mr. Baxter Arnold, representing Alan Gentz, testified in support of the bill.



03:20 PM -- Mr. Mike Brownell, representing Alan Gentz, testified in support of the bill.



03:23 PM -- Mr. JD Wright, representing the Landowners United Advocacy Foundation, testified in support of the bill. He distributed a handout to the committee (Attachment C).



16HouseFin0316AttachC.pdf



03:26 PM -- Ms. Jillane Hixson, representing herself, testified in support of the bill. She distributed a handout to the committee (Attachment D).



16HouseFin0316AttachD.pdf



03:35 PM -- Mr. Marc Arnusch, representing the Colorado Farm Bureau, testified in support of the bill.



03:37 PM -- Ms. Julie Gentz, representing herself, testified in support of the bill.



03:40 PM -- Mr. Alan Gentz, representing himself, testified in support of the bill. He distributed a handout to the committee (Attachment E).



16HouseFin0316AttachE.pdf











03:45 PM -- Ms. Julie Noonan, representing the Gentz family, testified in support of the bill.



03:50 PM -- Mr. Benjamin Waters, representing the Colorado Coalition of Land Trusts, testified from a neutral position on the bill with the amendment.

04:01 PM



The committee adjourned.