Taxation - Digest of Bills

Digest of Bills - 1997

TAXATION

S.B. 97-1 Sales and use tax - transfer to highway users tax fund of proceeds attributable to vehicles and related items - allocation - expenditures by the department of transportation - appropriation. Beginning with the 1997-98 fiscal year and for 4 succeeding fiscal years thereafter, allocates 10% of the proceeds of sales and use taxes attributable to the sales or use of vehicles and related items to the highway users tax fund; except that, in any fiscal year during the 5-year period:

Provides for a reduction in the amount of sales and use taxes credited to the highway users tax fund if there will not be sufficient general fund revenue to fund general fund expenditures up to the statutory appropriation limit after making required expenditures, making the allocation to the highway users tax fund, and maintaining the statutorily required reserve; and
Provides for a dollar-for-dollar reduction in the amount of sales and use taxes credited to the highway users tax fund and the amount of revenue appropriated during the next fiscal year for capital construction projects if there will not be sufficient excess revenues available for appropriation during the next fiscal year for capital construction projects in an amount equal to $140,000,000 after making the allocation to the highway users tax fund and maintaining sufficient general fund revenues to fund general fund expenditures up to the statutory appropriation limit and the statutorily required reserve.

Requires the general assembly to examine the conditions imposed on the revenues credited to the highway users tax fund as a result of this act and the amount of sales and use taxes credited thereto if the general assembly implements a tax policy change resulting in a significant reduction of general fund revenues.

Provides for the transfer of the revenues credited to the highway users tax fund as a result of this act to the state highway fund for allocation to the department of transportation for the implementation of the strategic transportation project investment program to be expended as follows:

At least 80% of such revenues on base corridors; and
Not more than 20% of such revenues on major investment study corridors, of which at least 50% must be used for highway purposes or highway-related capital improvements.

During the 5-year period, requires the department of transportation to report annually to the transportation committee of the senate and the transportation and energy committee of the house of representatives and to the joint budget committee concerning the revenues expended by the department for the implementation of the strategic transportation project investment program. Sets forth the specific information to be described in the report.

For the fiscal year beginning July 1, 1997, appropriates $148,300,000 from the highway users tax fund to the department of transportation for the implementation of this act.

APPROVED by Governor June 4, 1997
EFFECTIVE July 1, 1997

S.B. 97-26 Property tax - assessment ratio for residential real property. Establishes 9.74% of actual value as the ratio of valuation of assessment for residential real property for property tax years commencing on or after January 1, 1997, but before January 1, 1999.

APPROVED by Governor May 28, 1997
EFFECTIVE May 28, 1997

S.B. 97-39 Property tax - agricultural property - classification. Amends the definition of "agricultural and livestock products" for property tax purposes to state that neither the use of the product after sale nor the nature of the purchaser change the agricultural character of the product.

Specifies that the definition of "agricultural land" applies regardless of whether the land is used by the landowner or by a lessee. Eliminates the requirement that, to qualify as "agricultural land", the use of property as a farm or ranch must generate at least one-third of the total gross income resulting from all uses of the property during a given year.

Defines agricultural land that is "in the process of being restored through conservation practices" as land that has been placed in a federal conservation reserve program or land for which a conservation plan approved by the appropriate conservation district has been implemented for up to 10 crop years.

Establishes the following new categories of agricultural land:

Land used as a farm or ranch for which the owner has a decreed water right or final water permit for purposes other than residential purposes, where the owner uses the water for production of agricultural or livestock products on the land; and
Land that has been reclassified from agricultural land to another classification and that met the new statutory definition of agricultural land during the 3 years preceding the year of assessment.

Requires an assessor to determine that a parcel of land does not qualify as agricultural land under the first new category before changing the classification from agricultural land to any other classification.

For purposes of abatement and refund of property taxes, provides that "erroneous valuation" includes:

Any reclassification of property from agricultural land to any other classification for the property tax year commencing January 1, 1996, if the property would qualify as agricultural land under the statutory definition, as amended by this act; and
Any denial of exemption from taxation for the property tax year commencing January 1, 1996, that was claimed for products that would qualify as agricultural and livestock products under the statutory definition, as amended by this act.

Specifies that the changes to the definition of "agricultural land" apply to property tax years commencing on or after January 1, 1997.

APPROVED by Governor April 24, 1997
EFFECTIVE April 24, 1997

S.B. 97-45 Income tax - adjustment to taxable income - distributions under a qualified state tuition program. For income tax years commencing on and after January 1, 1998, exempts from Colorado taxable income the portion attributable to interest and other income of a distribution from a qualified state tuition program that is distributed for the purpose of meeting qualified higher education expenses of a designated beneficiary.

APPROVED by Governor April 24, 1997
EFFECTIVE August 6, 1997
NOTE: This act was passed without a safety clause. It shall take effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly that is allowed for submitting a referendum petition pursuant to article V, section 1 (3) of the state constitution; except that, if a referendum petition is filed against this act or an item, section, or part of this act within such period, then the act, item, section, or part, if approved by the people, shall take effect on the date of the official declaration of the vote thereon by proclamation of the governor.

S.B. 97-76 Sales and use tax exemption - coins and precious metal bullion. Reinstates the sales and use tax exemption for coins and precious metal bullion.

Specifies that the act applies to sales of coins and precious metal bullion made on or after October 1, 1997.

VETOED by Governor April 21, 1997

S.B. 97-92 Sales and use tax exemption - livestock definition. Defines "livestock" for purposes of the sales and use tax exemption for the sale and use of feed for livestock. Expands the sales and use tax exemption for the sale and use of livestock.

APPROVED by Governor April 19, 1997
EFFECTIVE July 1, 1997

S.B. 97-131 Sales and use tax exemption - fuel for residential energy use by occupants. For purposes of the sales and use tax exemption for fuel for residential energy use, clarifies that "residence" includes individually owned condominium units, regardless of the rental period.

Specifies that the act applies to sales and purchases of electricity, coal, wood, gas, fuel oil, or coke on and after July 1, 1997.

VETOED by Governor April 25, 1997

H.B. 97-1033 Sales and use tax exemption - charitable organizations - inclusion of fraternal benefit societies. Includes fraternal benefit societies under the definition of "charitable organization" to clarify that sales to fraternal benefit societies are not subject to the imposition of sales and use tax.

VETOED by Governor June 4, 1997

H.B. 97-1057 Sales and use tax exemption - tangible personal property used for biotechnical purposes. On and after July 1, 1997, exempts from sales and use tax all sales of tangible personal property purchased by companies to be used in Colorado directly and predominately in research and development of biotechnology.

VETOED by Governor June 4, 1997

H.B. 97-1086 Property tax - personal property exemption - reimbursement to local governments - fund created - state-local forum. For property tax years beginning on or after January 1, 1998, exempts from the levy and collection of property tax a stated amount of actual value of personal property listed on a personal property schedule.

For property tax years beginning on or after January 1, 1998, but prior to January 1, 2006, requires the state treasurer to transmit a specified amount of moneys for losses in property tax revenue to each local government in which the total assessed value of all taxable property within its taxing jurisdiction decreases below the total assessed value of all taxable property for such government for the 1997 property tax year. Creates the property tax exemption backfill fund and, for fiscal years beginning on or after January 1, 1998, but prior to January 1, 2006, requires the general assembly to appropriate a specified amount to the fund for reimbursement to local governments. By March 1, 1998, and each year thereafter through 2005, requires the property tax administrator to prepare a report specifying the amount to be transmitted to each local government and to submit the report to the state treasurer and the general assembly.

Repeals the current exemption for personal property in the amount of $2,500 or less, effective January 1, 1998.

Instructs the state-local forum to conduct intergovernmental fiscal policy research and make recommendations to the general assembly concerning the effects on governments of statewide tax policy changes. Requires the director of research of the legislative council to appoint staff members to assist the state-local forum. By October 1, 1997, requires the executive committee of the legislative council to adopt a plan to pay for the personnel costs associated with the state-local forum's fiscal policy research and to identify a permanent source of staff funding. Requires state and local governments to cooperate with the state-local forum by providing summary tax information. Specifically allows the state-local forum to obtain confidential information relating to fiscal policy research, including tax information in summary form. Prohibits any member or employee of the state-local forum from releasing confidential information. Requires the state-local forum to prepare an annual report of its activities.

VETOED by Governor June 4, 1997

H.B. 97-1137 Gasoline tax - filing of applications for refunds. Prohibits a claimant from filing an application with the department of revenue for a refund of gasoline tax more than once each calendar quarter. Expands the time period in which a claimant may apply for such a refund from 6 months to 12 months after the date of purchase of the gasoline.

APPROVED by Governor March 21, 1997
EFFECTIVE July 1, 1997

H.B. 97-1152 Income tax - credit for school-to-career programs. Beginning with the 1997 income tax year, allows a credit against state income taxes for 10% of the total qualified investment made in a qualified school-to-career program. Allows the amount of excess credit to be carried forward as a credit against subsequent years' tax liability for up to 5 years.

Repeals the existing income tax credit for investments in school-to-career programs in which students work predominately in enterprise zones.

APPROVED by Governor June 3, 1997
EFFECTIVE June 3, 1997

H.B. 97-1230 Sales and use tax exemption - vending machine sales - in-lieu registration fee. For years beginning on or after January 1, 1998, exempts sales and purchases of packaged items of food or drink through vending machines, other than bulk or sundry merchandise vending machines, from the state sales tax. In lieu of the state sales tax, imposes a registration fee on all vending machines, other than bulk or sundry merchandise vending machines, used to make such sales and purchases. Specifies that sales of items through bulk or sundry merchandise vending machines shall continue to be subject to collection of the state sales tax.

Requires each vending machine operator to maintain a record of the identification number, ownership, and taxing jurisdiction of the location of every vending machine used by the operator and to annually apply for identification numbers for his or her vending machines in accordance with rules promulgated by the department of revenue. Establishes a fee schedule for various types of vending machines. Commencing on October 1, 2000, authorizes the department of revenue to review every 3 years the fees imposed. Provides for phasing in the payment of the increased fees for calendar years 1998 and 1999. Provides that the expenses of the department of revenue in furnishing identification numbers shall be paid from the fees collected for vending machines and that the remainder of the fees collected shall be credited to the state general fund.

Increases the amount of the penalty for each unregistered vending machine from $25 to $200. Decreases the period of time after which a vending machine seized by the department of revenue may be sold from 60 to 30 days.

Defines "vending machines" and various classes of vending machines. Provides that the state sales tax exemption created by this act is not applicable to statutory cities' and counties' sales tax bases, unless expressly adopted by such cities and counties. Provides that the state sales tax exemption created by this act is not applicable to the regional transportation district, the scientific and cultural facilities district, or the baseball stadium district, unless expressly adopted by the regional transportation district. Instructs the department of revenue, on or before January 1, 1999, to make recommendations to the general assembly concerning how to allocate to said special districts a portion of the amount received through the registration fee in lieu of authorizing the special districts to continue collecting sales tax on vending machine sales.

Appropriates $21,431 from the vending machine fee administration cash fund and 0.3 FTE to the department of revenue for the implementation of the act.

VETOED by Governor June 4, 1997

H.B. 97-1260 Income tax - voluntary contributions - Colorado special olympics - appropriation. For income tax years commencing on or after January 1, 1997, but prior to January 1, 2000, permits taxpayers to designate on their Colorado individual income tax return an amount of contribution to the Colorado special olympics fund. Authorizes the general assembly to appropriate moneys in the fund to the department of revenue for costs incurred in implementing the contribution program and administering moneys designated as contributions. Creates the Colorado special olympics fund and credits such contributions to the fund. Stipulates that the Colorado special olympics shall use such moneys only for transportation, equipment, and uniforms for participants in the special olympics program.

Appropriates $36,000 from the Colorado special olympics fund to the department of revenue for the implementation of the act.

APPROVED by Governor May 28, 1997
EFFECTIVE May 28, 1997

H.B. 97-1265 Income tax - tax credit for alternative fuels vehicles and refueling facilities - alternative fuels vehicles rebate program. Modifies the formula used for calculating the amount of the income tax credit allowed for purchasing a motor vehicle that uses an alternative fuel or for converting the fuel system in a vehicle to a fuel system that uses an alternative fuel. Expands the credit to allow a credit for taxpayers who replace the power source in a vehicle that uses a traditional fuel with a power source that uses an alternative fuel. Conforms the definition of "alternative fuel" to be the same as used in the clean fuel fleet program. Allows the credit only for vehicles that are used for business purposes. Doubles the amount of the credit for any motor vehicle purchase or power source replacement that permanently displaces a motor vehicle or power source that is 8 years old or older. Extends the period of time that the income tax credit can be carried forward. Eliminates the existing July 1, 1998, repeal date for the credit.

Provides an income tax credit for a portion of the cost of constructing, reconstructing, or acquiring an alternative fuel refueling facility and that is directly attributable to the storage, compressing, or dispensing of alternative fuels for motor vehicles. Provides that the credit may be carried forward for five years.

Establishes a program to provide rebates to state and local governmental entities and to tax-exempt entities that purchase or convert to alternative fuel motor vehicles or that replace the power source in a vehicle that uses traditional fuel with a power source that uses an alternative fuel. Specifies the formula for calculating the maximum amount of the rebate. Allows a rebate only to the extent that a vehicle is used for the business or official activities of the entity. Doubles the amount of the rebate for any motor vehicle purchase or power source replacement that permanently displaces a motor vehicle or power source that is 8 years old or older. Authorizes the executive director of the department of revenue to grant rebates and requires the executive director to promulgate rules for granting such rebates. Establishes the alternative fuels rebate fund from which rebates are to be made and specified moneys to be credited to said fund.

Appropriates $740,179 out of the alternatives fuels rebate fund to the department of revenue, of which $36,000 is allocated for the initial costs of the department in implementing this act and of which the remainder is to be used to make rebates to qualified entities under article 32 of title 39, Colorado Revised Statutes.

VETOED by Governor June 4, 1997