Committee rejects $36,000 GenTax supplemental tied to HR1 after debate on absorbability

The Joint Budget Committee voted to reject a small Department of Revenue supplemental that would have funded GenTax software updates related to the passage of HR 1.

John Catlett, JBC staff, described the S1 request as roughly $36,000 to update GenTax forms and employer withholding reporting following federal changes tied to HR 1, and said the department argued the updates would improve data matching and accurate tax collection. “Under current statute, Colorado will decouple from the federal government and its collection of overtime compensation,” Catlett said while summarizing the changes the department wants to reflect in its software.

Several members pressed whether the modest request could be absorbed after the department took a $500,000 reduction last year. Senator Kirkmeyer and others questioned why the department could not reprogram existing cash or vacancy savings; Catlett said the department reported about $7,900,000 in total appropriation remaining in that cash fund after reductions but indicated the $500,000 reduction had been intended to absorb similar small requests.

The Chair said seeking another $35,000 in a supplemental was a difficult case to make in the current fiscal environment. Senator Mable moved to reject the S1 request; the motion passed 5‑0 with Sirota excused.

Senator Kirkmeyer asked staff to follow up if the department returns with the request, seeking detail on how much unobligated cash fund balance remains and the rationale for prior reductions.

Outcome: S1 GenTax request denied; staff will seek clarification from the department if it revisits the issue.