Legislature to consider cutting Pinnacol’s tax exempt status

The General Assembly is considering a bill that will remove the tax-exempt status of Pinnacol Assurance, the state’s quasi-governmental workers’ compensation insurance fund.

The Joint Committee, which decides all budget issues for the legislature, unanimously approved the idea as part of its budget recommendations to Gov. John Hickenlooper. The move follows reports that detail lavish spending by executives and board members, which included a $300,000 trip to Pebble Beach.

Pinnacol is a state-chartered worker’s compensation insurance fund, and has never paid state taxes.

The reduced tax benefit to Pinnacol would generate an estimated $3 million a year to balance the budget.

The panel is also drafting legislation that would take away half of a tax credit given to Colorado-based insurance company, which would generate $20 million to balance the budget.

Colorado is facing a multi-billion budget shortfall.