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I_LOCC_TPTF_2021A 08/09/2021 02:04:00 PM Committee Summary

PUBLIC
STAFF SUMMARY OF MEETING
INTERIM COMMITTEE  LEGISLATIVE OVERSIGHT COMMITTEE CONCERNING TAX POLICY & TASK FORCE
Date 08/09/2021
Attendance
Bird X
Kolker X
Liston X
Woog X
Hansen X
Benavidez X
Time 02:04:00 PM to 03:40:15 PM
Place HCR 0112
This Meeting was called to order by Benavidez
This Report was prepared by Katie Ruedebusch
Hearing Items Action Taken
Opening Remarks and Committee Plans Committee Discussion Only
Introduction to Tax Expenditure Evaluations Committee Discussion Only
Scope of Tax Policy to be Considered Committee Discussion Only

Opening Remarks and Committee Plans - Committee Discussion Only


02:04:53 PM  

Chair Benavidez called the committee to order. Each committee member introduced themselves to the committee. Chair Benavidez and Vice-Chair Hansen provided some opening remarks.



Introduction to Tax Expenditure Evaluations - Committee Discussion Only


02:20:57 PM  

Mr. Trey Standley, representing the Office of the State Auditor (OSA), came to the table to introduce the committee to the office's tax expenditure evaluation process. He distributed a list of tax expenditures reviewed by OSA with policy considerations through July 2021 (Attachment A).

02:22:51 PM  

Mr. Standley continued by discussing the cycle of evaluations and the issuance of a full report each year. He indicated that the office takes five years to review all of the expenditure provisions. He noted that OSA focuses on several things during their evaluations, including the purpose of the tax expenditure, the economic benefits, the impact to beneficiaries, and any issues with effectiveness of expenditure. He highlighted some examples of policy considerations including, but not limited to: repeal of obsolete provisions; clarity in the statutes; not effective at meeting their purpose; not targeting the specific population; and stated purposes of specific tax expenditures.

02:27:44 PM  

In response to a question from the committee, Mr. Standley discussed the evaluation process, specifically related to the purpose of a current tax expenditure. Mr. Standley, also in response to a committee question, defined tax expenditure, which includes tax credits, deductions, and exclusions. Several committee members discussed tax expenditures.

02:36:48 PM  

Mr. Standley continued by discussing the tax expenditures listed in Attachment A. He highlighted the process used by a previous interim legislative committee in 2019.

02:48:07 PM  

The committee discussed the tax expenditures that they would like further information on at future meetings.



Scope of Tax Policy to be Considered - Committee Discussion Only


02:57:51 PM  

Chair Benavidez discussed the appointment process and members of the Legislative Oversight Task Force Concerning Tax Policy.

03:00:29 PM  
The committee discussed
property taxes, enterprise zones, whether to use federal taxable income
or adjusted gross income as starting point for Colorado taxes, childcare-related
tax credits, expiring tax credits, senior and disabled veterans exemptions,
and retrospective sunsets on tax credits.  



Mr. Greg Sobetski, Legislative Council Staff, came to the table to answer
committee questions regarding future presentations.  

03:25:10 PM  

Mr. Sobetski explained the process going forward. Chair Benavidez explained the agenda items for upcoming meetings.

03:26:23 PM  
Mr. Standley returned to the table to answer committee questions regarding the committee's timeline.


03:40:15 PM   The committee adjourned.






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