Skip to main content
Colorado General AssemblyToggle Main Menu
Agency NameToggle Agency Menu

I_LOCC_TPTF_2021A 08/27/2021 09:04:55 AM Committee Summary

PUBLIC
STAFF SUMMARY OF MEETING
INTERIM COMMITTEE  LEGISLATIVE OVERSIGHT COMMITTEE CONCERNING TAX POLICY & TASK FORCE
Date 08/27/2021
Attendance
Bird E
Kolker E
Liston X
Woog X
Hansen X
Benavidez X
Time 09:04:55 AM to 02:17:28 PM
Place HCR 0112
This Meeting was called to order by Benavidez
This Report was prepared by Luisa Altmann
Hearing Items Action Taken
Sacramental Wines Excise Tax Exemption Committee Discussion Only
Exemption for Alcoholic Beverages Originating Outside the U.S. Committee Discussion Only
Excise Tax Credit for Unsalable Alcoholic Beverages Committee Discussion Only
Occasional Sale of Liquor by Public Auction Exemption Committee Discussion Only
Crop Hail Insurance Premium Tax Exemption Committee Discussion Only
In-State Investment Pre-1959 Premium Tax Deduction Committee Discussion Only
Unauthorized Insurance Premium Tax Expenditures Committee Discussion Only
Construction and Building Materials Exemption Committee Discussion Only
School Sales Exemptions Committee Discussion Only
Food Service Employer-Provided Meals Exemption Committee Discussion Only
Prefabricated Homes Exemptions Committee Discussion Only
Farm Close-Out Sales Tax Exemption Committee Discussion Only
Sales to Charitable Organizations Exemption Committee Discussion Only
Complimentary Marketing Property to Out-of-State Vendees Exemptions Committee Discussion Only
Lunch Committee Discussion Only
Materials Used in Ore Manufacturing and Processing Exemption Committee Discussion Only
Aircraft Used in Interstate Commerce Exemption Committee Discussion Only
Precious Metal Bullion and Coin Exemption Committee Discussion Only
Food for Home Consumption and Retirement Communities Exemption Committee Discussion Only
Food Ingredients Exemption Committee Discussion Only
Machinery Used in Manufacturing Exemption Committee Discussion Only
Pre-Press Printing Exemption Committee Discussion Only
Committee Discussion Committee Discussion Only

Sacramental Wines Excise Tax Exemption - Committee Discussion Only


09:06:40 AM  
Trey Standley and
James Taurman, representing the Office of the State Auditor, provided an
overview of the day's agenda.


The documents
referred to throughout the day can be found here:


http://leg.colorado.gov/sites/default/files/images/committees/2017/osa_te_reports_for_tax_policy_committee_8.2021.pdf

http://leg.colorado.gov/sites/default/files/images/committees/2017/osa_policy_considerations_for_tax_policy_committee_8.2021.pdf
09:08:13 AM  
Mr. Taurman discussed
the sacramental wines excise tax exemption.



Exemption for Alcoholic Beverages Originating Outside the U.S. - Committee Discussion Only


09:12:57 AM  
Mr. Taurman discussed
the exemption for alcoholic beverages originating outside the U.S. and
responded to questions from the committee regarding the exemption.



Senator Hansen requested information about alcohol excise tax rates in
other states.  Information requested by Senator Hansen can be found
here:


https://leg.colorado.gov/agencies/legislative-council-staff/liquor-tax

https://taxfoundation.org/state-distilled-spirits-taxes-2021/

https://taxfoundation.org/state-beer-taxes-2021/

https://taxfoundation.org/state-wine-taxes-2021/



Committee discussion ensued on topics concerned the amount of the exemption
and enforcement.



Excise Tax Credit for Unsalable Alcoholic Beverages - Committee Discussion Only


09:33:22 AM  
Mr. Taurman discussed
the excise tax credit for unsalable alcoholic beverages.



Committee discussion ensued.



Occasional Sale of Liquor by Public Auction Exemption - Committee Discussion Only


09:39:42 AM  
Mr. Taurman discussed
the occasional sale of liquor by public auction exemption.



Crop Hail Insurance Premium Tax Exemption - Committee Discussion Only


09:42:53 AM  
Mr. Taurman provided background regarding how insurance premiums are collected and responded to questions from the committee.

Mr. Taurman discussed the crop hail insurance premium tax exemption.



In-State Investment Pre-1959 Premium Tax Deduction - Committee Discussion Only


09:47:08 AM  
Mr. Taurman discussed the in-state investment pre-1959 premium tax deduction and responded to questions from the committee.



Unauthorized Insurance Premium Tax Expenditures - Committee Discussion Only


09:50:24 AM  
Mr. Taurman discussed
several types of unauthorized insurance premium tax expenditures, including
the federal premium, excise, and stamp tax deduction; the independently-procured
insurance exemption; and the educational and scientific institution life
insurance exemption.



Construction and Building Materials Exemption - Committee Discussion Only


09:58:07 AM  
Mr. Standley provided background on sales and use taxes in Colorado. Committee discussion ensued.
10:10:39 AM  
Mr. Standley discussed
the construction and building materials sales and use tax exemption.  Committee
discussion ensued regarding the exemption.
10:32:58 AM  
The committee took a brief recess.
10:44:12 AM  
The committee reconvened.



School Sales Exemptions - Committee Discussion Only


10:45:34 AM  
Mr. Standley discussed
several types of school sales sales and use tax exemptions, including the
sales to private schools exemption, the parent teacher associations and
organizations exemption, and the school related sales exemption.  Mr.
Standley responded to questions from the committee.



Food Service Employer-Provided Meals Exemption - Committee Discussion Only


11:01:42 AM  
Mr. Standley discussed
the food service employer-provided meals sales and use tax exemption.



Prefabricated Homes Exemptions - Committee Discussion Only


11:08:25 AM  
Mr. Standley discussed
the prefabricated homes sales and use tax exemptions, including the prefabricated
homes partial exemption, the manufactured homes exemption, and the subsequent
home sales exemption.  Mr. Standley responded to questions from the
committee.



Farm Close-Out Sales Tax Exemption - Committee Discussion Only


11:34:53 AM  
Mr. Standley discussed the farm close-out sales tax exemption. Mr. Standley responded to questions from the committee.



Sales to Charitable Organizations Exemption - Committee Discussion Only


11:45:59 AM  
Mr. Standley discussed
the sales to charitable organizations sales and use tax exemption.  Committee
discussion ensued.



Complimentary Marketing Property to Out-of-State Vendees Exemptions - Committee Discussion Only


11:53:32 AM  
Mr. Standley discussed the complimentary marketing property to out-of-state vendees sales and use tax exemptions.



Lunch - Committee Discussion Only


11:57:23 AM  
The committee recessed for lunch.
01:06:21 PM  
The committee reconvened.



Materials Used in Ore Manufacturing and Processing Exemption - Committee Discussion Only


01:06:45 PM  
Kim Tinnell, representing
the Office of the State Auditor, discussed the materials used in ore manufacturing
and processing sales and use tax exemption.  Ms. Tinnell responded
to questions from the committee.



Aircraft Used in Interstate Commerce Exemption - Committee Discussion Only


01:14:26 PM  
Ms. Tinnell discussed
the aircraft used in interstate commerce sales and use tax exemption.



Precious Metal Bullion and Coin Exemption - Committee Discussion Only


01:23:43 PM  
Ms. Tinnell discussed
the precious metal bullion and coin sales and use tax exemption.



Food for Home Consumption and Retirement Communities Exemption - Committee Discussion Only


01:27:44 PM  
Ms. Tinnell discussed the food for home consumption and food for retirement communities sales and use tax exemptions. Committee discussion ensued.



Food Ingredients Exemption - Committee Discussion Only


01:35:34 PM  
Ms. Tinnell discussed
the food ingredients sales and use tax exemption.



Machinery Used in Manufacturing Exemption - Committee Discussion Only


01:38:29 PM  
Ms. Tinnell described
the machinery used in manufacturing sales and use tax exemption.  Ms.
Tinnell responded to questions from the committee.



Pre-Press Printing Exemption - Committee Discussion Only


01:49:54 PM  
Ms. Tinnell discussed the pre-press printing sales and use tax exemption. Committee discussion ensued.



Committee Discussion - Committee Discussion Only


01:57:16 PM  
Ed DeCecco, representing the Office of Legislative Legal Services, responded to questions from the committee regarding future bill drafting and discussed several items for the committee's consideration.
02:10:29 PM  
Committee discussion
ensued.
02:10:43 PM  
The committee discussed
future meetings.


02:17:28 PM   The committee adjourned.






COVID-19 Resources
2021 Ballot Information Booklet (Blue Book)
NORTH ENTRANCE IS CURRENTLY CLOSED.  TO ENTER THE CAPITOL, USE THE SOUTH ENTRANCE, UNDER THE STAIRS, AT 14th AVENUE AND SHERMAN STREET.