h_fin_2016a_2016-02-24t13:36:00z3 Hearing Summary

Date: 02/24/2016

03:42 PM



The committee recessed.





03:50 PM



The committee returned to order.





03:50 PM -- HB16-1275



Representatives Foote and Pettersen, co-prime sponsors, introduced 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 a tax haven jurisdiction. 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 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 Educational Fund. The voter approved revenue increase is exempt from TABOR. Representative Foote distributed amendment L.001 (Attachment D) and several handouts (Attachments E, F, G, H, respectively). Committee discussion ensued.



16HouseFin0224AttachD.pdf16HouseFin0224AttachE.pdf



16HouseFin0224AttachF.pdf16HouseFin0224AttachG.pdf



16HouseFin0224AttachH.pdf



04:20 PM -- Mr. Tim Gaudette, representing the Small Business Majority, came to the table to testify in support of the bill.



04:27 PM -- Mr. Tyler Rauert, representing World Trade Center Denver, came to the table to testify against the bill.



04:42 PM -- Ms. Rhonda Sparlin, representing the Colorado Association of Commerce and Industry, came to the table to testify against the bill.



04:55 PM -- Ms. Kerrie Dallman, representing the Colorado Education Association, came to the table to testify in support of the bill.



05:02 PM -- Mr. Patrick Boyle, representing the Colorado Competitive Council, came to the table to testify against the bill.



05:13 PM -- Ms. Marilyn Hughes, representing herself, came to the table to testify in support of the bill.



05:16 PM -- Ms. Patricia Davis, representing herself, came to the table to testify in support of the bill.



05:20 PM -- Ms. Nikki Dobay, representing the Council on State Taxation, came to the table to testify against the bill. She provided the committee with a tax study (Attachment I).



16HouseFin0224AttachI.pdf



05:40 PM -- Ms. Rhonda Peters, representing herself as a small business owner, came to the table to testify in support of the bill.



05:47 PM -- Mr. Phillip Horowitz, representing DOR, came to the table to answer committee questions. Committee discussion ensued.



06:02 PM -- Ms. Michelle McCartny, representing the Colorado Bar Association, came to the table to testify against the bill.



06:07 PM -- Mr. Scott Larson, representing Terumo BCT, came to the table to testify against the bill.



06:13 PM -- Mr. Tom Clark, representing the Metro Denver Economic Development Corporation and the Denver Metro Chamber, came to the table to testify against the bill.



06:25 PM -- Dr. Andrea Kutinsky, representing the Colorado Association of School Executives, came to the table to testify in support of the bill.



06:30 PM -- Ms. Sophia San Miguel, representing herself, came to the table to testify against the bill.



06:34 PM -- Mr. Danny Katz, representing the Colorado Public Interest Research Group, came to the table to testify in support of the bill.





06:45 PM



Representative Foote distributed amendment L.003 (Attachment J).



16HouseFin0224AttachJ.pdf



06:52 PM -- Mr. Scott Froehlich, representing Terumo BCT, came to the table to testify against the bill.



07:02 PM -- Mr. Horowitz returned to the table to answer committee questions. Committee discussion ensued.

07:20 PM



Representatives Foote and Pettersen provided some closing comments on the bill.



07:23 PM -- Ms. Esther van Mourik, Legislative Legal Services, came to the table to address committee questions. Committee discussion ensued.

07:56 PM



The committee adjourned.