Bell testifies for greater accountability on tax exemptions

Rich Jones, director of policy and research at the Bell, testified on Wednesday in favor of House Bill 12-1039, a proposal to add some scrutiny and accountability when Colorado grants tax credits and exemptions.

The bill would have required, before any exemptions or credits are granted or expanded, that lawmakers show how they would be paid for with offsetting budget cuts or increases in revenues.

Jones' testimony said, in part:

"The legislature enacts tax credits and exemptions as a means of accomplishing specific public policy goals. In many cases tax credits and exemptions have been and continue to be an effective mechanism for implementing public policy. There are a number on the books in Colorado today that we believe to be sound and vital, and there are some that make the overall effect of taxation in Colorado less regressive.

"However, unlike spending decisions, which are carefully scrutinized and reviewed by the governor's budget office and legislature's Joint Budget Committee every year, there is limited review of tax exemptions and credits. For the most part, we enact them and then forget about them. Yet they account for more than one-quarter of our General Fund revenue and are paid for "off the top," before we fund any other aspect of state government."

The bill was defeated, 6-7, in the House Finance Committee on a party-line vote.

Click here to read his full testimony.