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I_LOCC_TPTF_2023A 08/30/2023 10:01:48 AM Committee Summary

PUBLIC
STAFF SUMMARY OF MEETING
INTERIM COMMITTEE  LEGISLATIVE OVERSIGHT COMMITTEE CONCERNING TAX POLICY & TASK FORCE
Date 08/30/2023
Attendance
Frizell *
Kolker X
Liston X
Marshall X
Hansen X
Weissman X
Time 10:01:48 AM to 03:33:57 PM
Place HCR 0112
This Meeting was called to order by Weissman
This Report was prepared by Katie Ruedebusch
Hearing Items Action Taken
Office of the State Auditor Committee Discussion Only
Overview of Housing Tax Policy Committee Discussion Only
Panel: County Tax Lien Sale Process Committee Discussion Only
Presentation by the Colorado Housing & Financing Authority (CHFA) Committee Discussion Only

10:01:50 AM
Chair Weissman gave some opening remarks and discussed the meeting's agenda.



Office of the State Auditor - Committee Discussion Only
10:05:00 AM  
Mr. Trey Standley
and Ms. Michelle Colin, representing the Office of the State Auditor (OSA),
presented some additional tax expenditure evaluations for the committee's
review.  OSA indentified five additional expenditures for review.
 Their reports may be found in Attachment A.
10:07:13 AM  
Mr. Standley continued by discussing the newsprint & printer's ink and newspaper exemption.
10:18:33 AM  
Mr. Standley continued by discussing the deduction for wages & salaries due to Internal Revenue Code 280C.
10:36:10 AM  
Mr. Standley continued
by discussing the structural cigarette and tobacco products excise tax
expenditures. He specifically discussed the bad debt credits.
10:43:52 AM  
Mr. Standley continued by discussing the credit for purchase of a uniquely valuable motor vehicle registration numbers.
11:00:46 AM  
Mr. Standley presented
on the long-term care insurance credit.  



Overview of Housing Tax Policy - Committee Discussion Only
11:17:05 AM  
Dr. Elizabeth Ramey, Legislative Council Staff, provided an overview presentation of Colorado housing tax expenditures. Her presentation may be found in Attachment B.
11:19:05 AM  
She began by discussing the affordable housing tax credit and sales and use exemptions for housing authorities.
11:26:53 AM  
Dr. Ramey continued by discussing the manufactured homes sales tax exemption.
11:30:23 AM  
Dr. Ramey continued
by discussing the tiny home sales tax exemption.  Committee discussion
ensued on the taxable status of a tiny home.
11:34:26 AM  
Dr. Ramey moved on to tax expenditures for home buyers, including the first-time homebuyer savings account deduction and the employer assistance for home purchase tax credit.
11:39:56 AM  
Dr. Ramey continued by discussing the federal home mortgage interest deduction.
11:41:03 AM  
Dr. Ramey continued by moving on to property tax related tax expenditures, such as the homestead exemptions.
11:44:42 AM  
Mr. Greg Sobetski,
Legislative Council Staff, came to the table to answer a committee question.
11:49:55 AM  
Dr. Ramey continued by discussing the senior housing income tax credit. The refundable tax credit is for tax year 2022 only.
11:51:36 AM  
Dr. Ramey continued by discussing the property tax, rent, and heat credit (PTC) rebate and the property tax deferral program.



Panel: County Tax Lien Sale Process - Committee Discussion Only
12:01:40 PM  
The committee took a lunch break.
01:08:21 PM  
The committee came back to order.
01:08:56 PM  
Ms. Anne Mangiardi, representing the Colorado Attorney General's Office, came to the committee to discuss the US Supreme Court case Tyler vs. Hennepin County and the Attorney General's Formal Opinion 23-01.
01:11:45 PM  
Boulder County Treasurer Paul Weissman came to the table to discuss the issues related to the court case and the AG's opinion.
01:23:53 PM  
Committee discussion
continued with Treasurer Weissman.
01:26:52 PM  
Larimer County Treasurer and Public Trustee Irene Josey came to the table to discuss the issue.
01:34:44 PM  
Committee discussion with the panelists continued.
01:41:55 PM  
Ms. Mangardi answered several questions relate to footnote 9.
01:46:20 PM  
Committee discussion ensued on options moving forward.



Presentation by the Colorado Housing & Financing Authority (CHFA) - Committee Discussion Only
01:55:51 PM  
The committee took a brief recess.
02:17:56 PM  
The committee came back order.
02:18:14 PM  
Ms. Jerilynn Francis,
representing the Colorado Financing and Housing Authority (CHFA), came
to discuss CHFA's role and interaction with Colorado tax policy.  CHFA's
presentation may be found in Attachment C.
02:22:32 PM  
She noted CHFA's impact in the community through homeownership, rental housing, business lending, and community partnerships.
02:26:33 PM  
Ms. Francis continued
by discussing low income housing tax credits (LIHTC). She discussed both
federal tax credits.
02:30:19 PM  
She continued by discussing Colorado's affordable housing tax credit (AHTC).
02:34:10 PM  
Ms. Kathryn Grosscup, representing CHFA, provided additional information on housing tax credits. She compared housing tax credits for multifamily developments.
02:43:48 PM  
Ms. Grosscup continued by discussing CHFA's qualified allocation plan.
02:52:31 PM  
Ms. Grosscup continued by discussing CHFA's 2022 round two and 2023 round two projects.
02:54:49 PM  
Ms. Francis continued by discussing the residents supported by CHFA.
02:55:16 PM  
Ms. Francis continued
by discussing OSA's tax evaluation report of the state affordable housing
tax credit.
02:57:24 PM  
Ms. Francis continued by discussing the challenges such as high development costs and supply chain restraints, rising interest rates, resource oversubscription, and federal credit reduction.
02:58:41 PM  
Ms. Francis continued by discussing rental housing needs and meeting the spectrum of those needs.
03:07:51 PM  
Committee discussion
continued on small-scale development, criteria for affordability of the
units, average rent, and compliance.
03:25:10 PM  
Committee discussion
with CHFA continued.


03:33:57 PM   The committee adjourned.






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