‘This is not my hometown. I’m seeing my constituents’ money going to a tax incentive that benefits your hometown, while Boulder is taxing itself out of viability.’ — Rep. Ken DeGraaf
By BRIAN PORTER | Rocky Mountain Voice
The appropriateness of a tax-credit incentive offered by the state, benefiting a single community and in recruitment of an external entity while ignoring struggling tax-paying entities in that community and other areas of the state, was the discussion of a Colorado House committee Thursday.
House Bill 25-1005, by Democrat Reps. Brianna Titone and Julie McCluskie and sponsored by Democrat Sen. Judy Amabile and Republican Sen. Mark Baisley, incentivizing the Sundance Film Festival to relocate to Boulder, was advanced on a 7-6 largely party-line vote, with all committee Republicans opposing the measure. Democrat Bob Marshall also opposed the bill.
If passed, HB 1005 would provide $34 million in tax-credits over a 10-year period — including up to $4 million in 2027 and 2028, $5 million in 2029 and $3 million each following year through 2036 — to one qualifying global film festival entity with specific parameters. A second credit would be offered to existing or small film festival entities capped at $500,000 annually from 2027-36.
Such a commitment may be playing Colorado for the fool, Marshall eluded.
“You’re saying the state of Colorado needs to throw $34 million in,” he said, noting a report that indicates Utah is “putting in $3 million, in response to our $34 million.” When rebuffed, Marshall noted the report says Utah is contributing “$1.5 million up front, and $1.5 million going forward.”
He expressed displeasure his question as to the financial participation of Boulder never received a response.
Proponents note the present economics of the Sunset Film Festival — 1,730 jobs, $69.7 million in wages, $13.8 million in local and state tax and $132 million in gross domestic product over an 11-day event.
“This is really a once-in-a-lifetime opportunity,” Titone said.
Fiscal review of the bill indicates it will have a negative impact on future general fund revenues, while Republicans might note the state already faces a deficit of at least $700 million.
“Why is the emphasis not on cutting taxes in general, instead of giving the tax break?,” asked Rep. Ken DeGraaf, who opposed the measure. “This is not my hometown. I’m seeing my constituents’ money going to a tax incentive that benefits your hometown, while Boulder is taxing itself out of viability.”
DeGraaf contended the bill was a Democrat admission that taxes in Colorado “are too high and we are chasing businesses out.”
Titone responded: “We’re not adjusting the tax rate, we’re adjusting the tax credit for the festival to come here.”
Boulder City Councilman Matt Benjamin offered testimony supporting the bill.
“This is a good return on investment,” he said. “Some ask is the city up to it? The city is absolutely up to it.”
But, that was specifically to Rep. Anthony Hartsook’s opposition.
“I have concerns this is focused on a single community, instead of statewide,” he said. “We say we want [Colorado] to be a destination, [and that] they will come here. If they will come here, why do we have to incentivize them? Usually, I see incentives if we have a problem and are overcoming an obstacle.”
It harkened back to a previous statement from the bill sponsor.
“We’re not a flyover state, we’re a destination state,” Titone had said. “This is going to bring people to all of our districts.”
That assumes visitors travel to far reaching places with little tourism appeal many hours from the festival in Colorado — such as Julesburg three hours away, Lamar 3.5 hours away, Grand Junction four hours away and Durango six hours away.
DeGraaf, who was the top-rated legislator on the Liberty Scorecard in the 2024 session with one of just three A grades, noted the potential conflict with the state constitution.
“I don’t see how it could possibly align with the constitution,” he said, citing the constitution specifically to members of the committee. “This seems to be in direct violation of two parts of our Colorado constitution.”
His argument then returned to equality under the law, also an enshrinement of the constitution.
“I have a lot of constituents, a lot of businesses that would also like to be protected from the tax code of Colorado,” DeGraaf said. “I would rather see something where a rising tide raises all ships. Otherwise, businesses, they see this and say ‘why not me? What am I, chopped liver?'”
Finance Committee Chair Rep. William Lindstedt stated the Democrat position on the bill.
“This is a huge opportunity for our state,” he said. “I’m glad we’re doing what we need to do to win this bid. I am excited for the film festival to come to Colorado.”
Titone notes Boulder is one of three finalists for the film festival and “if it doesn’t happen, then you won’t have the tax credit.”
Fans of such movies as Dumb and Dumber and The Mule, for example, might agree with Titone on how film makers cast Colorado. In Dumb and Dumber and The Mule, Fort Morgan was a shooting location which the film cast as external to the state. There’s also The Shining, as example, which was set in Colorado but oddly scenes throughout the movie are not indicative of Estes Park.
“They can finally film Colorado, and not film Colorado and pretend it is somewhere else,” Titone said, “There’s a lot of benefit.”
But, DeGraaf indicated he can’t see the benefit for taxpayers, calling the bill a “tax disincentive in Colorado for businesses.”
“This is indictive of Colorado. We’re raising a tax here, we’re raising a tax there and all of the sudden we realize we’ve overtaxed, so we need to give someone a tax break, instead of a break across (the board),” he said.
Joining DeGraaf and Hartsook in opposition were Republican Reps. Jarvis Caldwell, Ryan Gonzalez and Ron Weinberg.