Colorado House Democrats

Bill Targets Corporate Tax Cheats

Lawmakers Expose Retailer's Misuse of REIT Tax Shelter

(DENVER) State Representative Claire Levy (D-Boulder) today unveiled a bill targeting a tax evasion scheme used by Wal-Mart and other large corporations. Rep. Michael Merrifield (D-Colo Springs) and Senator Jennifer Veiga (D-Denver) joined Rep. Levy as sponsors of the legislation.

The bill implements the long-standing policy in Colorado that corporate profits earned in the state are subject to state tax, and it distinguishes between valid Real Estate Investment Trusts and Captive REITs such as Wal-Mart's. The bill requires corporations to declare the use of suspect transactions on their corporate tax return.

“These companies are abusing the public trust,” said Rep. Levy. “By sending their Colorado profits overseas and back through a series of shell corporations, they avoid paying their fair share of taxes."

Rep. Levy explained that federal tax law created REITs to allow small investors to participate in real estate markets that would otherwise require very large amounts of capital. Legitimate use of REITs is not affected.

"This is a scam,” said Rep. Levy. “Tax accountants dreamed up this idea and sold it to Wal-Mart on the sole basis that it would avoid the clear intent of the tax laws. This scheme has no other purpose. Wal-Mart avoids paying its rightful tax bill by hiding its profits. This bill gives us the tools to find those hidden profits."

The Wall Street Journal and others have noted that Wal-Mart pays itself rent and calls that a tax-deductible business expense, thus skirting payment of standard taxes.

“This bill does not create a new tax. These are taxes that are rightfully owed.  The people of Colorado pay taxes; so should corporations. Wal-Mart can certainly afford to pay their fair share. Wal-Mart sends its profits on a European vacation and then leaves the honest Colorado taxpayer stuck with the bill," said Rep. Levy. "It is time to put a stop to this sham."

The Wall Street Journal indicates that Wal-Mart avoided paying $350 million in state taxes between 1998 and 2001. Many other states have taken action against the company in recent years.

-- Posted by staff

How Many Elected Officials Does it Take to Change a Light Bulb?

DENVER –State leaders were instrumental in transforming the State Capitol into a “Green House” by changing the light bulbs in the House chamber’s chandelier earlier this week.  The conventional incandescent light bulbs were removed, recycled and replaced with compact fluorescents.  The move prompted jokes from onlookers as to ‘just how many legislators it takes to change a light bulb?’

All joking aside, the light bulb switch, which highlighted the replacement not only of the 65 bulbs in the ornate brass chandelier, but all the bulbs throughout the Capitol building, will have huge energy and cost savings.   

Compact fluorescents last more than ten times as long as the old incandescent bulbs and significantly reduce the amount of carbon emissions released into the environment.   Over the next 10 years, carbon emissions will be reduced by 692,904 pounds, the equivalent of taking over 100 cars off the road and will save Colorado taxpayers more than $17,000 annually. 

The 1500-pound, pure brass chandelier is lowered each December for cleaning in anticipation for January when lawmakers return for the 2008 legislative session.

Photo: "Greening the House" Left to right: Representative Debbie Benefield, Representative Claire Levy, and Representaive Sara Gagliardi.

-- Posted by Staff

Rep. Claire Levy receives award for planning leadership

Colorado Chapter of the American Planning Association gives Rep. Claire Levy the 2007 Chapter Award for Planning Leadership

The Colorado Chapter of the American Planning Association has announced that State Representative Claire Levy, District 13, Boulder, is the recipient of a 2007 Chapter Award for Planning Leadership. She will be honored on October 4, 2007, at the Annual State Conference in Colorado Springs.

During her first year in the State Legislature, Representative Levy was the prime sponsor of 11 bills, and through her tireless efforts all but 3 passed and were signed by the Governor. Among the 8 bills passed, several supported good planning principles and were supported by Colorado APA in the 2007 Legislative Agenda. Of these, the most important was House Bill 1246, “Predictability in Planning,” which permits communities to adopt and treat their master plans as binding.

Without her knowledge, skill, efforts, and determination, it is unlikely that “Predictability in Planning,” a significant statutory change in support of master plans and good planning, would have become law.

“I am proud to have passed a law that allows cities and counties to shape their future development according to their own vision,” said Rep. Levy. Representative Levy has distinguished herself as an attorney and a statesperson. She clearly exemplifies the traits of a leader in planning, law, and policy, and is a deserving recipient of this award.
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The Colorado Chapter is the state affiliate of the American Planning Association (APA), which has an organizational objective to encourage planning that will contribute to the public well-being by developing communities and environments that meet the needs of people and society. The Colorado Chapter is an organization of professionals and citizen planners providing vision and leadership for the future development of Colorado communities. The association serves as a forum for the exchange of ideas, as a network in support of planning professionals, and as a bridge to build cooperation among planners, allied professionals, and the public through education and awareness.

--posted by Staff