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2013 Legislative Session Report

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2013 Legislative Session Report 2013 Colorado Legislative Session Report Colorado Nonprofit Association worked on several key bills for Colorado nonprofits during the 2013 Colorado regular legislative session. Aponté and Busam, a political consulting firm, represents us at the Capitol to advance our positions on legislation. Enterprise Zone Projects HB 13-1190 Contributions to Intermediary Organizations for Enterprise Zone Projects Actively Support 5/3/13 Signed by the Governor. Took effect with the Governor’s signature. PRIMARY SPONSORS Representative Dominick Moreno (D-Commerce City); Senator Rollie Heath (D–Boulder) SUMMARY HB 13-1190 clarifies that donations passed through nonprofit intermediary organizations (for example, a United Way agency or an online giving website such as www.givingfirst.org) to nonprofits certified by the local Enterprise Zone (EZ) Administrator are eligible for the Enterprise Zone contribution project tax credit. These intermediary organizations are required to distribute donations, as designated by the taxpayer, to a recipient nonprofit organization, program, or project that is certified by the local EZ Administrator. Both the recipient organization and intermediary organization must be 501(c)(3) charitable organizations. RATIONALE FOR SUPPORT Nonprofit intermediaries already play a big role in facilitating donations to EZ contribution projects. HB 13- 1190 clarifies this role under state law. It also allows donors to take advantage of the various ways they can give through intermediaries including workplace giving, Colorado Gives Day, and other options provided by federated giving campaigns. In 2011, about 32,000 donors donated nearly $44 million to contribution projects and their donations qualified for the tax credit, according to the Office of Economic Development and International Trade (OEDIT). That same year, donors gave $2.9 million to contribution projects through coloradogives.org and $450,000 through Mile High United Way in particular. ASSOCIATION ACTIONS • Helped draft the language of the bill • Lobbied for the passage of the bill • Organized testimony on the bill • Testified in support of the bill • Sent out information in the member news bulletin • Posted a fact sheet on the website Serving nonprofits. Strengthening communities. 455 Sherman Street | Suite 207 | Denver, Colorado 80203-4494 | (303) 832-5710 | (800) 333-6554 | (303) 894-0161 | www.ColoradoNonprofits.org Links Governor Signs Nonprofit Enterprise Zone Bill Ed Sealover. Enterprise Zones Get a Little Boost. Denver Business Journal. Feb. 26, 2013. Nonprofit Tax Exemptions HB 13-1246 Modify Property Tax Exemptions for Nonprofit Organizations Actively Support 05/11/13 Signed by the Governor. Took effect with the Governor’s signature. PRIME SPONSORS Representative Lois Court (D-Denver); Senator Pat Steadman (D-Denver) SUMMARY This bill makes the following changes to property tax exemption laws affecting nonprofits: • Allows nonprofit housing providers to claim exemption for properties sold to low income households for construction or rehabilitation after the transfer of the property. The property tax-exempt status may continue for up to one year after the sale of the property. • The bill expands the definition of “low income applicant” to residents at 80 percent of the area’s median income rather than 60 percent previously. • If a nonprofit requests a waiver of deadline from the State Board of Equalization (SBOE), the SBOE must set a modified deadline of no fewer than thirty days from the date the waiver is granted. • If the SBOE finds that a nonprofit has paid property taxes as a result of an error or omission by a public official, then it may authorize the Property Tax Administrator to restore property tax exemption retroactively. RATIONALE FOR SUPPORT This bill makes it easier for nonprofits to maintain their property tax exemption in three ways. First, it clarifies that property tax exemption applies to properties sold by nonprofit housing providers to low- income applicants. The property must be rehabilitated or reconstructed into housing within a year of the sale. Second, when the SBOE grants a deadline waiver for a nonprofit that misses the annual report filing deadline, it requires that the SBOE give a nonprofit at least thirty more days to complete its annual report. This allows the SBOE to hold the nonprofit accountable for meeting the extended deadline while having the option of setting a longer deadline where appropriate. Third, if a nonprofit’s property is taxed in error due to an action by a public official, the nonprofit can appeal the decision to the SBOE. If the SBOE finds that the property was taxed in error, the SBOE may vote to restore exemption for up to two previous years. This allows the state to correct errors that occur as state and local government keep track of tax-exempt properties. ASSOCIATION ACTIONS • Actively lobbied legislators on the bill • Testified in support of the bill Serving nonprofits. Strengthening communities. 455 Sherman Street | Suite 207 | Denver, Colorado 80203-4494 | (303) 832-5710 | (800) 333-6554 | (303) 894-0161 | www.ColoradoNonprofits.org • Sent out information in the member news bulletin • Posted a fact sheet on the website Links Support HB 13-1246. HB 13-1288 Establish Statewide Uniform Sales & Use Tax Base Actively Support 5/28/13 Signed by the Governor. Took effect with Governor’s signature. PRIME SPONSORS Representative Kathleen Conti (R-Littleton), Representative Daniel Kagan (D-Englewood); Senator Pat Steadman (D-Denver), Senator Owen Hill (R-Colorado Springs) SUMMARY This bill requires that the Colorado Department of Revenue (DOR) make recommendations to the General Assembly regarding establishment of a uniform sales and use tax base. The Department of Revenue, with the assistance of associations that represent counties and municipalities, will prepare a report that documents goods and services subject to sales and use tax and exemptions in effect for each local taxing jurisdiction across the state. The report will estimate revenue associated with each exemption, analyze how a revenue neutral uniform sales and use tax base can be established in the state, and make final recommendations to the General Assembly on how to establish a uniform sales and use tax base. RATIONALE FOR SUPPORT This report will help inform efforts to clarify and simplify how Colorado’s multiple levels of sales and use taxation apply to nonprofits and businesses. Currently, when making purchases exempt from sales taxes, nonprofits must provide documentation that they are exempt from both state sales taxes and from any applicable local sales taxes. If nonprofits are unclear about which documents apply to the purchase or if retailers are unclear about which documents to collect, the nonprofit could end up paying taxes from which they are exempt or retailers could fail to collect taxes owed to the state or local taxing jurisdiction. ASSOCIATION ACTIONS • Actively lobbied legislators on the bill • Testified in support of the bill • Posted a fact sheet on the website • Sent out information in the member news bulletin LINKS Marianne Goodland. Colorado on its way to collect online sales tax. The Colorado Statesman. May 6, 2013. Ed Sealover. Colorado moves into step with feds over online sales tax. Denver Business Journal. April 25, 2013. Serving nonprofits. Strengthening communities. 455 Sherman Street | Suite 207 | Denver, Colorado 80203-4494 | (303) 832-5710 | (800) 333-6554 | (303) 894-0161 | www.ColoradoNonprofits.org Medicaid Eligibility Expansion SB 13-200 Expand Medicaid Eligibility Actively Support 5/13/13 Signed by Governor. Took effect with the Governor’s signature. PRIME SPONSORS Senator Irene Aguilar (D-Denver), Senator John Kefalas (D-Fort Collins); Representative Mark Ferrandino (D–Denver) SUMMARY As part of the Patient Protection and Affordable Care Act (PPACA), signed by President Obama in 2010, states are required to expand Medicaid eligibility by 2014 from 100 percent to 133 percent of the Federal Poverty Level (FPL) for parents and caretaker relatives of Medicaid children, and for childless adults and adults without dependent children. Although PPACA required expansion of Medicaid, a U.S. Supreme Court ruling prohibited Congress from reducing overall Medicaid funding for states refusing to expand Medicaid. As a consequence, states can receive additional Medicaid funding for expanding Medicaid but the federal government can’t require states to complete the expansion. This bill allows Colorado to expand Medicaid eligibility to 133 FPL for the specific groups listed above, as authorized by federal law. The bill clarifies that childless adults or adults with dependent children must be between nineteen and sixty-five years old. Between 2014 and 2017, the federal government will pay for 100 percent of expansion and then 90 percent after 2017. SB 13-200 also allows hospital provider fee cash funds to be used to pay the state’s share of the expansion. RATIONALE FOR SUPPORT Expanding Medicaid eligibility is a critical step toward reducing the number of Colorado’s uninsured and is integral to the success of healthcare reform. This bill will provide health coverage to approximately 160,000 uninsured Coloradans. SB 13-200 will reduce the number of uninsured Coloradans and ensure overall health insurance costs are shared more equitably. When individuals lack health insurance and can’t afford to pay for healthcare, those uncompensated costs result in higher premiums for those with coverage through their employer, through
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