0E7F74553452781C87258A7B005A1025 Hearing Summary

PUBLIC
BILL SUMMARY For RULES OF THE DEPARTMENT OF REVENUE CONCERNING WILDFIRE MITIGATION MEASURES

JOINT COMMITTEE COMMITTEE ON LEGAL SERVICES
Date Dec 4, 2023
Location Old State Library

Rules of the Department of Revenue concerning wildfire mitigation measures - Committee Discussion Only

09:24:11 AM

Megan McCall, Staff
Attorney, Office of Legislative Legal Services (OLLS), presents to the
committee what the OLLS believes is a conflict of two rules of the Executive
Director of the Department of Revenue (DOR) with the underlying statutes.
The first rule promulgated by the DOR concerns the wildfire mitigation
measures income tax subtraction in 1 CCR 201-2, Rule 39-22-104 (4)(n.5).
The second rule promulgated by the DOR concerns the wildfire mitigation
measures income tax credit in 1 CCR 201-2, Rule 39-22-543 (2) and (3).
These issues are uncontested, and a representative of the DOR is present
to address any questions from the committee. Because of the conflict, the
OLLS recommends these rules not be extended.

09:29:08 AM

Chair Gonzales asks
the committee if members have questions.

09:30:30 AM

Senator Roberts asks
Ms. McCall a clarifying question about not extending the rules and the
reasoning for the OLLS recommendation.

09:30:55 AM

Ms. McCall responds
that not extending the rule will affect the way the tax credit is administered
and the recommendation is a result of the rule narrowing the scope of the
tax credit in a way that is inconsistent with the statute.

09:32:23 AM

Representative Weissman
shares with the committee how this rule intersects with a bill being drafted
for the Tax Policy Interim Committee. The interim committee considered
exactly this deduction and credit and came to the conclusion that this
incentive is too low. Therefore the pending legislation will propose to
change the language to alter the scope of the tax incentive and clarify
for the DOR how to promulgate rules to conform to the statute.

09:35:05 AM

Ms. McCall comments
that as a result of the pending legislation, the DOR will need to promulgate
rules to address the changes to the statute moving forward in any case.

09:35:49 AM

Senator Roberts asks
the representative of the DOR if he is aware of any examples of the hypotheticals
raised in the memo.

09:37:05 AM

Josh Pens, Director
of Tax Policy for the DOR, responds that he has not reviewed these specific
claims, so he is not aware if any of these issues have occurred. He adds
that his staff recalls having questions during the rule making process
for the statute many years ago.

09:38:30 AM

Senator Roberts asks
Mr. Pens why the rule issue is uncontested by the DOR.

09:38:53 AM

Mr. Pens responds
that the DOR was able to work with the Tax Policy Interim Committee to
add clarifying language to the statute if the pending legislation passes,
and it wasn't worth the time to contest the issue if the DOR will need
to revise the regulation in any case.

09:40:00 AM	Motion	I move that Rule 39-22-104 (4)(n.5) (2) and (3) of the rules of the Department of Revenue's executive director concerning the wildfire mitigation measures subtraction be extended.
	Moved	Soper
	Seconded

	Dickson	Excused
	Gardner	No
	Hansen	No
	Mabrey	No
	Roberts	No
	Van Winkle	No
	Weissman	No
	Wilson	No
	Soper	No
	Gonzales	No
		YES: 0 NO: 9 EXC: 1 ABS: 0 FINAL ACTION: FAIL

09:41:00 AM	Motion	I move that Rule 39-22-543 (2) and (3) of the rules of the Department of Revenue's executive director concerning the wildfire mitigation measures credit be extended.
	Moved	Soper
	Seconded

	Dickson	Excused
	Gardner	No
	Hansen	No
	Mabrey	No
	Roberts	No
	Van Winkle	No
	Weissman	No
	Wilson	No
	Soper	No
	Gonzales	No
		YES: 0 NO: 9 EXC: 1 ABS: 0 FINAL ACTION: FAIL

Rules of the Department of Revenue concerning wildfire mitigation measures - Committee Discussion Only

Colorado General Assembly