h_lg_2017a_2017-03-22t14:14:50z1 Hearing Summary

Date: 03/22/2017

Location: HCR 0107

02:46 PM -- SB17-112



Representative Pabon, sponsor, discussed the provisions of SB17-112 concerning tax payments to incorrect local governments. He explained that the bill seeks to clarify legisaltive intent from a bill enacted in 1985 that addressed a situation where a taxpayer paid a sales and use tax to one local government when it should have instead paid that disputed amount to a different local government. A recent court case applied the statute of limitations to this dispute resolution process, resulting in the taxpayer having to pay the disputed amount twice to two different local governments. The bill specifies that any statutes of limitations, either local, state, or in intergovernmental transfer agreements, do not apply to the remedies set forth in law. He answered questions from the committee and distributed Amendment L. 003 (Attachment B). He explained that the amendment provides a recourse in cases where an individual is trying to take advantage of the system. Chairman Lebsock stated that forthcoming witnesses can address both the bill and the amendment.



17HouseLocal0322AttachB.pdf



03:01 PM -- Chris Howes, representing the Colorado Retail Council, spoke in support of the measure. Mr. Howes explained that paying taxes to the incorrect local government most often happens at the borders of cities, towns, and counties. He answered questions from the committee.



03:03 PM -- Patrick Boyle, representing the Colorado Competitive Council, testified in support of the bill. He explained that the bill corrects a misunderstanding about original intent of the law and answered questions from the committee.



03:14 PM -- Diane Criswell, representing the Colorado Municipal League, explained that her organization has taken a neutral position on the bill. She answered questions from the committee and explained that collecting and paying taxes to the right entity entails cooperation between the business community and local governments. The bill and the amendment provide a remedy for inadvertent double taxation.



03:23 PM -- Michelle McCarthy, representing the Colorado Bar Association, spoke in favor of the bill.



03:24 PM -- Loren Furman, representing the Colorado Association of Commerce & Industry, spoke in favor of the bill. Ms. Furman explained the the bill protects taxpayers and local jurisdictions and streamlines the process by providing a remedy. She further supported that the bill addressed statute of limitations issues.





03:34 PM



Representative Pabon made closing remarks about the bill and amendment.

03:38 PM



The committee adjourned.