Taxation - Digest of Bills

Digest of Bills - 1994

TAXATION

S.B. 94-64 Income tax - enterprise zones - credits for contributions to promote temporary housing for the homeless. For income tax years commencing on or after January 1, 1994, adds monetary or in-kind contributions to promote temporary, emergency, or transitional housing programs for the homeless that offer child care, job placement, and counseling services as permissible contributions to enterprise zones qualifying for existing tax credit programs.

APPROVED by Governor June 3, 1994
EFFECTIVE July 1, 1994

S.B. 94-80 Property tax - valuation for assessment - producing mines. Requires an owner or operator of a producing mine which is located in more than one county to report the number of acres in each county in the annual statement filed with the county assessor for valuation purposes. Requires the owner or operator to report the quantity of products derived from the ore extracted from the mine if the value of such products is used in determining gross value. Mandates the use of actual gross selling prices of the first salable products in the determination of gross value.

Permits an owner or operator of a producing mine to elect to report certain figures in the annual statement submitted to the county assessor based on an average of the figures for a 3- or 5-year period preceding January 1 of the year the annual statement is to be filed. Requires an owner or operator who has made such an election to continue to use the same averaging period for all annual statements until the boards of county commissioners of each county in which the mine is located approve a change. Sets forth procedures for electing or requesting a change in the averaging period.

Defines "costs" for purposes of the annual statement filed with the county assessor. Specifies that increases in valuation of producing mines shall constitute additions to taxable real property for purposes of "local growth" under section 20 of article X of the state constitution (Amendment #1). Requires machinery and equipment and personal property associated with a producing mine to be listed on a personal property schedule for valuation by the county assessor. Requires improvements to be listed separately and valued for assessment. Authorizes the county assessor to require an owner or operator of a producing mine to provide documentation in support of the amounts reported in the annual statement filed with the county assessor. Directs the division of property taxation to set forth guidelines concerning the county assessor's examination authority.

Applies to property tax years commencing on or after January 1, 1994.

APPROVED by Governor May 19, 1994
EFFECTIVE May 19, 1994

S.B. 94-156 Income tax - continuation of tax checkoff for homeless prevention activities program. Extends the voluntary income tax checkoff program for funding the homeless prevention activities program. Exempts the homeless prevention tax checkoff program from the requirement that any program funded by voluntary contributions of income tax refunds have a sunset clause.

APPROVED by Governor April 19, 1994
EFFECTIVE April 19, 1994

S.B. 94-182 Property tax - incentive agreements - school districts - counties -municipalities - enterprise zones. Changes the name of incentives provided by a school district to certain taxpayers who establish new or expanded business facilities in the district from "incentive payments" to "incentive payments or credits." Limits the duration of any incentive agreement entered into by school districts to 4 years. Directs the department of education to ensure that the state's share of a district's total program, which takes into account the terms of any incentive agreements entered into by the school district, does not exceed what the state's share would have been if no new or expanded business facility had been established in the district. Requires the state board of education to promulgate rules and regulations for making such determination. Provides that incentive agreements pertaining to a particular facility or expansion shall only be considered in determining the state's share for a period of 10 years. Repeals the January 1, 1995, sunset of the provisions authorizing such incentive payments or credits by school districts.

With respect to counties and municipalities, changes the name of incentives provided to certain taxpayers who establish new or expanded business facilities from "incentive payments" to "incentive payments or credits." Repeals the January 1, 1995, sunset of the provisions authorizing such incentive payments or credits by counties and municipalities.

Changes the name of incentives provided by a county, municipality, or city and county located within an enterprise zone from "incentive payments" to "incentive payments or credits."

APPROVED by Governor June 7, 1994
EFFECTIVE January 1, 1995

S.B. 94-200 Income tax - historic property preservation tax credit - extension. Extends the Colorado income tax credit until January 1, 2000, for qualified costs incurred in the preservation of qualified historic properties.

APPROVED by Governor May 25, 1994
EFFECTIVE May 25, 1994

S.B. 94-212 Special fuel tax - exemptions - dyed special fuel. Exempts any special fuel that has been dyed in accordance with federal regulations and that is not subject to federal excise tax from the imposition of a state excise tax if the seller notifies the purchaser, in accordance with federal regulations, that the dyed fuel is not legal for taxable use.

APPROVED by Governor May 31, 1994
EFFECTIVE July 1, 1994

H.B. 94-1024 Collection of taxes imposed by certain political subdivisions of the state - use of net incremental cost recovery method by department of revenue. Specifies net incremental costs as the type of costs recovered by the department of revenue for the collection of lodging and rental taxes imposed by counties and for the collection of sales taxes imposed by local improvement districts, the Denver metropolitan major league baseball stadium district, and scientific and cultural facilities districts, including the Denver metropolitan scientific and cultural facilities district.

Establishes a maximum amount, as adjusted to reflect changes in the Denver-Boulder consumer price index, which may be recovered in any given fiscal year commencing on or after July 1, 1994, by the department of revenue for costs incurred by said department in the collection of sales taxes imposed by local improvement districts, the regional transportation district, the Denver metropolitan major league baseball stadium district, and scientific and cultural facilities districts, including the Denver metropolitan scientific and cultural facilities district.

APPROVED by Governor March 29, 1994
EFFECTIVE March 29, 1994

H.B. 94-1036 Property tax - valuation of real property during intervening years. For property tax years commencing on and after January 1, 1994, eliminates any occurrence, condition, factor, act, or change which results in the actual value of the property being less than or greater than the correct level of value by more than 10% as an unusual condition requiring assessors to revalue real property during the intervening year of the reassessment cycle.

APPROVED by Governor March 22, 1994
EFFECTIVE March 22, 1994

H.B. 94-1053 Income tax - capital gains - income modification. For income tax years commencing on or after July 1, 1995, allows a modification in the form of a reduction of income taxable by the state of Colorado for the amount of income attributable to qualifying gains receiving capital treatment earned by a qualified taxpayer and included in federal taxable income. Defines "qualified taxpayer" and "qualifying gains receiving capital treatment". Prohibits the modification from being carried forward to subsequent tax years or from resulting in a right to a cash refund. Requires the taxpayer claiming the income modification to submit an affidavit stating that the taxpayer meets the requirements for claiming the modification.

APPROVED by Governor May 9, 1994
EFFECTIVE May 9, 1994

H.B. 94-1058 Medical savings accounts - contributions - distribution limitations - taxation - portability. Revises the "Individual Medical Account Act of 1986" and renames it the "Medical Savings Account Act of 1994". Provides that an employer may offer to establish medical savings accounts for its employees or, in the alternative, that an employee may establish such accounts on his or her own behalf.

Restricts the amount that may be contributed to a medical savings account each year to $3,000, unlike former law which limited contributions to $2,000 for the account holder, $2,000 for the account holder's spouse, and $1,000 for each dependent child. Eliminates the requirements that the account be established as a trust and that the trustee purchase major medical coverage for the account holder. States that if an employer contributes less than the maximum allowed then the employee may contribute the difference. Provides that employee contributions to a medical savings accounts shall be made on a pre-tax basis through payroll deductions.

States that account moneys shall be distributed only to pay an eligible medical expense, cash out a deceased account holder's balance, or cash out an account holder's prior years' account balance. States that medical expenses will be reimbursed from a medical savings account only if they are incurred by the account holder or his or her spouse or dependent child. Eliminates the 10% distribution penalty on early withdrawals and the $100 deductible requirement. States that amounts that have accumulated in a medical savings account or been withdrawn for the payment of eligible medical expenses shall not be subject to state income taxation. Provides that amounts withdrawn for other purposes shall be subject to state income taxation.

Prohibits employees from using account moneys to fund a policy that covers the deductible for a "qualified higher deductible health plan", which may be as much as $3,000. Adds portability provisions which provide that an account holder may change his or her account administrator upon changing employment.

APPROVED by Governor June 7, 1994
EFFECTIVE January 1, 1995

H.B. 94-1067 Property tax - collection procedures. Repeals obsolete statutory provisions concerning a study of the method for collecting and distributing property tax. Allows a property tax payment due on a Saturday, Sunday, or legal holiday to be made on the next business day rather than on the preceding business day. Requires a receipt for payment of taxes to be issued by the treasurer only upon request of the taxpayer rather than issued in every case and mailed only upon request of the taxpayer. Removes the requirement that a receipt for taxes paid include the valuation for assessment of the property on which the taxes were paid. Allows the treasurer to retain records by photographic, electronic, or other means.

Requires the notice of delinquent taxes to include the amount of interest due on delinquent taxes through the last day of the month in which the notice is mailed rather than through the last day of August. Requires the time for sale of personal property to run from the date the notice is first published rather than from the date of the first notice. Clarifies statutory provisions concerning actions to collect unpaid taxes. Establishes that the county attorney's obligation to perform all legal work involved in the collection of personal property taxes exists only upon request of the treasurer.

Requires the treasurer to publish notice of a tax sale in a weekly newspaper in 3 rather than 4 successive weekly issues. Permits the treasurer to keep records concerning the affidavit of posting the taxpayer's list and tax certificates issuance and transfer in a permanent record of the office rather than a record book.

Expands the prohibition against county officials and employees acquiring property by sale of a tax lien to also apply to acquiring a tax lien on property.

APPROVED by Governor April 20, 1994
EFFECTIVE April 20, 1994

H.B. 94-1101 Special fuel tax on liquified petroleum gas and natural gas - collection - reporting. Directs the department of revenue to promulgate rules and regulations allowing owners or operators of motor vehicles powered by liquified petroleum gas or natural gas to pay the annual license tax fee, if applicable, and to acquire a decal for such motor vehicles directly from vendors and distributors of such fuels. Requires that such rules and regulations permit participating vendors and distributors to return decals not issued and remit license tax fees collected not earlier than 120 days from when such decals are supplied to the vendor or distributor. Exempts motor vehicles that are owned or operated by nonprofit transit agencies that receive public funds and that are used exclusively in performing nonprofit functions and activities from the annual license tax fee and the special fuel tax. Authorizes the department of revenue to promulgate other reasonable rules and regulations concerning annual license tax fees collected and decals issued.

Permits distributors to aggregate figures on tax reports for all service stations that dispense liquified petroleum gas and natural gas owned by the same distributor and for all sales of liquified petroleum gas and natural gas to a particular type of user. Provides that inventory reporting requirements do not apply to distributors of natural gas who receive special fuel through a pipeline and who have an on-site fuel storage capacity of less than one thousand gallon equivalents. Exempts distributors who sell liquified petroleum gas and natural gas exclusively to other distributors, vendors, or retailers from tax reporting, collection, and remittance requirements.

APPROVED by Governor April 28, 1994
EFFECTIVE July 1, 1994

H.B. 94-1163 Income tax - enterprise zones - credit for new business facility employees. Provides that a new business facility employee whose primary duty is operating a commercial motor vehicle with a commercial driver's license is deemed to be working 100% within an enterprise zone, for purposes of qualifying the facility for an existing tax credit, if the employee spends no more than 5% of his or her time at another facility of the employer. Applies to tax years beginning on and after January 1, 1994.

APPROVED by Governor June 2, 1994
EFFECTIVE July 1, 1994

H.B. 94-1221 Income tax - United States olympic committee voluntary contribution - extension. Reestablishes the state income tax voluntary contribution designation in support of the United States olympic committee and continues such contribution for 4 years. Subjects the olympic tax checkoff program to automatic elimination if the program does not meet or exceed 10% of the amount contributed to all voluntary tax checkoffs during the 4-year period.

APPROVED by Governor April 28, 1994
EFFECTIVE April 28, 1994

H.B. 94-1239 Severance tax - molybdenum ore - coal. Deletes statutory provisions which would have increased the severance tax rate on molybdenum ore from 5¢ per ton to 10¢ per ton and the severance tax rate on coal from 36¢ per ton to 60¢ per ton on July 1, 1994.

APPROVED by Governor March 29, 1994
EFFECTIVE March 29, 1994