Taxation - Digest of Bills

Digest of Bills - 2000

TAXATION
S.B. 00-72 Sales tax - department of revenue - collection for local governments - notice of omitted retailers - interest on delayed distributions - notice of additional areas subject to tax. Requires a municipality or county to notify the department of revenue of any retailers omitted from a monthly listing of retailers provided by the department as soon as practicable, but in no event more than 180 days after receiving the monthly listing.

For sales tax collected with a processing date on or after January 1, 2001, requires the department of revenue to pay interest on those collections that have not been distributed to counties and cities within 60 days of receiving the collections.

Requires municipalities and the regional transportation district to notify the department of revenue when areas are added to a municipality or to the regional transportation district.

APPROVED by Governor April 14, 2000
EFFECTIVE August 2, 2000
NOTE: This act was passed without a safety clause. For further explanation concerning the effective date, see the note from page vi of this digest.

S.B. 00-103 Colorado commission on taxation - creation - duties. Creates the Colorado commission on taxation. Specifies the membership and the duties of the commission. Requires the commission to submit to the governor and the general assembly a status report no later than April 15, 2001, and a final report no later than December 1, 2001. Authorizes the commission to receive private moneys to be used for the direct and indirect costs of the study. Specifies staff support for the commission.

S.B. 00-156 Aviation fund - allocation of moneys back to airports - use for aviation purposes - adjustment in 2000 long bill. Changes the distribution formula for sales and use taxes collected by the state on aviation fuel sold at a public-accessible airport for use by turbo-propeller or jet engine aircraft and credited to the aviation fund. On and after July 1, 2000, provides that airports receive 65% of such tax revenue, rather than the current 75%, with the remaining percentage retained in the fund to be used by the Colorado aeronautical board to make discretionary grants for aviation purposes. Deletes an outdated provision.

Prohibits subsidization of airlines as an "aviation purpose" except for the promotion and marketing of air service.

Adjusts the 2000 long bill to reflect the change made in the distribution formula for the aviation fund by decreasing the appropriation for formula grants and increasing the appropriation for discretionary grants.

APPROVED by Governor May 26, 2000
EFFECTIVE July 1, 2000

S.B. 00-185 Property tax - tax assistance - eligibility for assistance grants - appropriation. For grants claimed for property tax years commencing on or after January 1, 2000, excludes medicaid payments specifically provided for the payment of medicare premiums from income when determining whether a person qualifies for a state property tax assistance grant or a heat or fuel assistance grant.

Appropriates $277,114 for the 1999-2000 fiscal year and $554,228 for the 2000-01 fiscal year to the department of revenue for the implementation of the act.

APPROVED by Governor May 26, 2000
EFFECTIVE May 26, 2000

H.B. 00-1048 Special olympics voluntary contribution program - extension. Extends to income tax years commencing prior to January 1, 2003, the option for individual taxpayers to make voluntary contributions to the Colorado special olympics fund on state individual income tax return forms.

APPROVED by Governor March 24, 2000
EFFECTIVE August 2, 2000
NOTE: This act was passed without a safety clause. For further explanation concerning the effective date, see the note from page vi of this digest.

H.B. 00-1049 Income tax - earned income tax credit - increase in amount of credit. For any income tax year commencing on or after January 1, 2000, increases the amount of the earned income tax credit that is allowed from 8 ½% to 10% of the amount of the federal earned income tax credit if the amount of excess state revenues for the state fiscal year that ends in that income tax year is at least $50,000,000, as annually adjusted for inflation.

APPROVED by Governor May 31, 2000
EFFECTIVE August 2, 2000
NOTE: This act was passed without a safety clause. For further explanation concerning the effective date, see the note from page vi of this digest.

H.B. 00-1052 Income tax - credit for contributions to the Colorado institute for telecommunication education - refund of excess state revenues. For any income tax year commencing on or after January 1, 2001, if the amount of excess state revenues for the state fiscal year that ends in that income tax year is $350,000,000 or more, as annually adjusted for inflation, allows a taxpayer an income tax credit in an amount equal to 15% of the taxpayer's total monetary contributions made to the Colorado institute for telecommunication education for the purpose of funding grants or scholarships for students enrolled at the institute. Limits the maximum amount of the credit that may be claimed for any income tax year to $10,000. Specifies that the credit shall not exceed the taxpayer's actual tax liability for the income tax year for which the credit is claimed and that any amount of the credit in excess of the taxpayer's income tax liability may not be carried forward or refunded to the taxpayer. Requires the executive director of the department of revenue to publish any credit allowed in rules and include any credit allowed in income tax forms.

APPROVED by Governor May 31, 2000
EFFECTIVE May 31, 2000

H.B. 00-1053 Income tax - modification for charitable contributions - refund of excess state revenues. For any income tax year commencing on or after January 1, 2001, if the amount of excess state revenues for the state fiscal year that ends in that income tax year exceeds $350,000,000, as annually adjusted for inflation, subtracts from the federal taxable income of an individual who does not claim itemized deductions on the individual's federal income tax return an amount equal to the amount of any deduction based upon the aggregate amount of charitable contributions in excess of $500 that the individual could have claimed pursuant to the internal revenue code if the individual had claimed itemized deductions. Requires the executive director of the department of revenue to publish any income tax modification allowed in rules and include any modification allowed in income tax forms.

APPROVED by Governor May 31, 2000
EFFECTIVE May 31, 2000

H.B. 00-1059 Property tax - payments - delinquent interest. Allows recipients of property tax statements to pay the first installment on property taxes after the last day of February without accruing delinquent interest if the payment is made no later than 30 days after the statement was mailed.

Specifies that the act applies to payments of property taxes levied on or after January 1, 2000.

APPROVED by Governor March 10, 2000
EFFECTIVE March 10, 2000

H.B. 00-1063 Income tax - tax credit for health care professionals practicing in health care professional shortage areas - refund excess state revenues. For any income tax year commencing on or after January 1, 2000, but prior to January 1, 2005, if the controller certifies that the amount of excess state revenues for the state fiscal year ending in that income tax year exceeds the limitation on state fiscal year spending and the voters either have not authorized the state to retain and spend all of the excess state revenues or have authorized the state to retain and spend only a portion of the excess state revenues for that fiscal year, allows to each taxpayer a credit against the state income tax in an amount equal to one-third of the amount of the loan made to the taxpayer to finance higher education opportunities resulting in a medical, physician assistant, or nursing degree up to the amount of the taxpayer's actual income tax liability for the taxable year for which the credit is claimed.

Specifies that, if the controller certifies that the amount of excess state revenues for any state fiscal year commencing on or after January 1, 2000, but prior to January 1, 2005, are less than $285 million, the state income tax credit shall not be allowed for the income tax year in which the state fiscal year ended. Requires the executive director of the department of revenue to annually adjust the amount of excess state revenues used to determine if the state income tax credit is allowed to reflect the rate of growth of Colorado personal income for the calendar year immediately preceding the calendar year in which the adjustment is made. Requires the executive director to notify the executive committee of the legislative council of the adjusted dollar amount and the basis for the adjustment. Requires the executive committee to review and approve or disapprove the adjustment, and specifies procedures to be followed in connection with that review.

Specifies that the income tax credit shall only be allowed when the taxpayer:

Is a health care professional;
Has resided and practiced in a rural health care professional shortage area for a period of not less than180 days of the first income tax year for which the credit is claimed;
Has committed to residing and practicing in a rural health care professional shortage area for at least 3 but up to 5 years pursuant to criteria established in rules promulgated by the state department of public health and environment; and
Is a borrower on a student loan made to the taxpayer to finance higher education opportunities resulting in a medical, physician assistant, or nursing degree.

Requires the state department of public health and environment to certify that the health care professional qualifies for the credit.

Requires the executive director of the department of revenue to publish rules pertaining to the state income tax credit allowed by the act. Requires the credit to be included on income tax forms for the year in which it is allowed.

APPROVED by Governor May 23, 2000
EFFECTIVE August 2, 2000
NOTE: This act was passed without a safety clause. For further explanation concerning the effective date, see the note from page vi of this digest.

H.B. 00-1065 Severance tax - expansion of oil and gas exemption - withholding requirements. For tax years commencing on or after January 1, 2000, increases the maximum number of barrels of oil that may be produced daily to qualify for an exemption from the severance tax, and excludes such oil production from the ad valorem tax credit. For tax years commencing on or after January 1, 2000, expands the severance tax exemption to apply to gas produced from wells that produce no more than 15 barrels of gas per day and excludes such gas production from the ad valorem tax credit. Applies the severance tax and ad valorem tax credit to oil and gas, and defines "oil" to include crude oil and condensate and defines "gas" to include natural gas, coalbed methane, and carbon dioxide.

Maintains the requirement that a producer of oil and gas must submit a production employee report to the department of revenue, regardless of the applicability of the severance tax exemption.

Reduces the amount that a producer or purchaser who disburses funds to a person owning an interest in oil or gas produced in Colorado must withhold from such disbursements. Excludes from this withholding requirement any production that is exempt from the severance tax if the producer or purchaser has registered such exempt production with the department of revenue in accordance with rules promulgated by the department.

Requires every producer or purchaser who must provide a statement of deductions and withholdings to a person owning an oil or gas interest to retain that statement for 3 years. Requires the producer or purchaser to make the statements available to the department of revenue upon written request of the department.

APPROVED by Governor May 31, 2000
EFFECTIVE July 1, 2000

H.B. 00-1067 Income tax - modification of tax credit for alternative fuel vehicles and refueling facilities. Extends the following by a specified number of years:

The state income tax credit for purchasing alternative fuel vehicles;
The state income tax credit for constructing, reconstructing, or acquiring an alternative fuel refueling facility; and
The state alternative fuel rebate program for governmental and nonprofit entities.

Eliminates the requirement that a vehicle be used in connection with a business to claim the alternative fuel income tax credit. Specifies that a vehicle using a hybrid propulsion system is a "motor vehicle" for the purpose of qualifying for the income tax credit or the rebate program.

Specifies that the alternative fuels rebate fund for governmental and nonprofit entities may receive moneys transferred from the AIR account. Requires the department of public health and environment, in preparing its annual budget request, to evaluate the projected amount of moneys available in and expenditures from the AIR account for purposes of determining whether a portion of that account would be available for transfer to the fund.

H.B. 00-1103 Income tax - reduction of rate - appropriation. Lowers the state income tax rate imposed on individuals, estates, trusts, domestic C corporations, and foreign C corporations doing business in Colorado from 4.75% to 4.63% for income tax years commencing on or after January 1, 2000.

Adjusts the statutory formula for computing the alternative minimum tax to reflect the reduction in the income tax rate.

Requires the executive director of the department of revenue to include a statement on all income tax return forms explaining that the income tax rate was reduced for income tax years commencing on or after January 1, 2000.

Appropriates $53,577 from the general fund to the department of revenue for implementation of the act. Allows for the appropriation by reducing the appropriation made in the 2000 long bill to the capital construction fund for further appropriation to the department of transportation for highway construction projects by $53,577.

H.B. 00-1104 Income tax - credit for health benefit plans expenses to refund excess state revenues to comply with TABOR - appropriation. For income tax years commencing on or after January 1, 2000, if the controller certifies that the amount of excess state revenues for the state fiscal year ending in that income tax year equals or exceeds $400 million, and the voters statewide either have not authorized the state to retain and spend all of the excess state revenues or have authorized the state to retain and spend only a portion of the excess state revenues for that fiscal year, allows resident individuals to claim a credit against state income taxes due on the resident individual's income for amounts paid for health benefit plans for the resident individual or the resident individual's spouse or dependents if:

The resident individual or the resident individual's spouse or dependents were not covered by an individual health benefit plan or an employee or group health benefit plan during any portion of the income tax year immediately preceding the income tax year for which the credit is being claimed; or
The resident individual was allowed or was eligible to claim the credit for the income tax year immediately preceding the income tax year for which the credit is being claimed; and
For a resident individual with no dependents filing a single return, the resident individual's federal adjusted gross income does not exceed $25,000 for the calendar year immediately preceding the income tax year for which the credit is claimed; or
For two resident individuals with no dependents filing a joint return or two married resident individuals with no dependents filing separate returns, the resident individuals' federal adjusted gross income does not exceed $30,000 for the calendar year immediately preceding the income tax year for which the credit is claimed; or
For a resident individual with dependents filing a single return, two resident individuals with dependents filing a joint return, or two married resident individuals with dependents filing separate returns, the resident individuals' federal adjusted gross income does not exceed $35,000 for the calendar year immediately preceding the income tax year for which the credit is claimed.

Specifies that the amount of the credit shall be equal to the amount paid for the health benefit plan during the taxable year for which the credit is claimed, not to exceed $500. Prohibits the credit for:

Any amount paid by a taxpayer for a health benefit plan during a taxable year that is deducted from the federal adjusted gross income for said taxable year; and
Any amount paid by a taxpayer or employer of the taxpayer during a taxable year for an employee or group health benefit plan for the taxpayer or the taxpayer's spouse or dependents that is provided through the taxpayer's employer.

Limits the credit to one credit per household. Specifies that the amount of the credit shall not exceed a taxpayer's state income tax liability, shall not be carried forward and used against subsequent years' tax liability, and shall not be refunded to the taxpayer.

Requires the executive director of the department of revenue to publish rules pertaining to the credit allowed in any given taxable year and to include the credit in income tax forms for that taxable year. Declares the income tax credit for health benefit plan expenses to be a reasonable method of refunding excess state revenues.

Appropriates $144,300 to the department of revenue for the implementation of the act.

Allows for the appropriation by reducing the appropriation made in the 2000 long bill to the capital construction fund for further appropriation to the department of transportation for highway construction projects by $144,300.

APPROVED by Governor May 25, 2000
EFFECTIVE May 25, 2000

H.B. 00-1134 Income tax - resident individual - military personnel excluded. For purposes of taxation under the state income tax laws, excludes from the definition of "resident individual" any individual domiciled in Colorado who is absent from the state for at least 305 days of a tax year commencing on or after January 1, 2001, for active military duty outside of the United States and who elects not to file a tax return as a resident individual. Excludes from this definition a spouse who accompanies that individual during that individual's absence from the state.

APPROVED by Governor May 26, 2000
EFFECTIVE January 1, 2001
NOTE: This act was passed without a safety clause. For further explanation concerning the effective date, see the note from page vi of this digest.

H.B. 00-1145 Property tax - personal property tax credit - refund of excess state revenues. For any state fiscal year commencing on or after July 1, 2000, modifies the credit against state taxes for a portion of business personal property taxes paid during the preceding state fiscal year and the administration of the credit as follows:

Specifies that any person or entity that, as of June 15 of the state fiscal year immediately preceding any state fiscal year for which the credit is allowed, is the owner of record of personal property in the state that is not otherwise exempt from the levy and collection of personal property tax and on which personal property tax was paid in a timely manner during that fiscal year is a "qualified taxpayer" that may be allowed the credit.
Requires the credit to automatically be refunded to qualified taxpayers during any state fiscal year if the revenue estimate prepared by the staff of the legislative council in June of the immediately preceding state fiscal year indicates that the amount of excess state revenues for the immediately preceding state fiscal year will be at least $170,000,000 as annually adjusted for inflation, or if the state controller subsequently certifies that the amount of excess state revenues for the immediately preceding state fiscal year was actually at least $170,000,000 as annually adjusted for inflation.
Automates the refunding of the credit by eliminating the requirement that each qualified taxpayer file a claim for the credit and requires county treasurers and county assessors to provide sufficient information to the department of revenue to allow the department to refund the credit automatically. To ensure that the information is accurate, requires the property tax administrator to provide to the county assessor of each county information regarding qualified taxpayers for whom the administrator has determined the actual value of taxable property within the county. Requires the department to keep the information confidential in the same manner as other tax returns and documents. Sets forth deadlines and procedures for the department to follow in refunding the credit.
If the department of revenue issues an erroneous or excessive refund, allows the department to assess the person or entity that received the refund for the amount of the refund.
Requires the executive director of the department of revenue to annually adjust the threshold amount of excess state revenues required to trigger the credit at an earlier time than is presently required.

Requires the property tax administrator to publish a definition or description of the types of personal property that are held for consumption by any business and therefore exempt from property tax in the property tax manuals, appraisal procedures, and instructions.

Specifies that exhibits and statements attached to a personal property schedule shall be deemed sufficient for the purposes of the schedule if the exhibits or statements clearly list the property, the cost of the property, and the date the property was acquired.

Requires each county treasurer to file an annual report of abatements and refunds of personal property taxes with the department of revenue by August 10 of each year. Requires the report to include the name of each owner of taxable personal property granted the abatement or refund of personal property taxes, the amount of personal property taxes abated or refunded, and the date the abatement or refund was granted.

APPROVED by Governor May 23, 2000
EFFECTIVE May 23, 2000

H.B. 00-1162 Sales and use tax - exemption - items used in agricultural operations. Expands the definition of "implements of husbandry" to include:

Vehicles adapted or used for agricultural purposes;
Agricultural commodity handling equipment; and
Heavy movable farm equipment primarily used in a livestock production facility.

With respect to the existing sales and use tax exemption for farm equipment, expands the terms under which a signed affidavit is required to verify the covered transaction to include those purchasing, and not just renting or leasing, farm equipment.

For purposes of the existing sales and use tax exemption, expands the definition of "farm equipment" to include, regardless of purchase price:

Parts used in the repair or maintenance of farm equipment;
Shipping pallets or aids paid for by a farm operation; and
Aircraft designed or adapted to undertake agricultural applications.

Requires any incorporated town, city, or county that presently imposes a sales and use tax on parts used in the repair or maintenance of farm equipment, shipping pallets or aids paid for by a farm operation, and aircraft designed or adapted to undertake agricultural applications to continue to impose the tax unless it adopts an ordinance or resolution that explicitly exempts these items from the sales and use tax.

APPROVED by Governor May 16, 2000
EFFECTIVE July 1, 2000

H.B. 00-1171 Income tax - exclusion of certain interest, dividend, and capital gains income - refund of excess state revenues to comply with TABOR. For any income tax year commencing on or after January 1, 2001, if the controller certifies that the amount of excess state revenues for the state fiscal year ending in that income tax year exceeds $350 million and the voters either have not authorized the state to retain and spend all of the excess state revenues or have authorized the state to retain and spend only a portion of the excess state revenues for that fiscal year, expands the existing exclusion from federal taxable income for state income tax purposes in an amount equal to the aggregate of any interest income, dividend income, and net capital gains, not to exceed $1,500 in any taxable year. In the case of two individuals filing a joint return or a qualified individual filing as a surviving spouse, the amount subtracted from federal taxable income shall not exceed $3,000 in any taxable year.

Specifies that, if the controller certifies that the amount of excess state revenues for any state fiscal year commencing on or after July 1, 2000, are less than $350 million, the state income tax modification shall not be allowed for the income tax year in which the state fiscal year ended. Requires the executive director of the department of revenue to annually adjust the amount of excess state revenues used to determine if the state income tax modification is allowed to reflect the rate of growth of Colorado personal income for the calendar year immediately preceding the calendar year in which the adjustment is made. Requires the executive director to notify the executive committee of the legislative council of the adjusted dollar amount and the basis for the adjustment. Requires the executive committee to review and approve or disapprove the adjustment and specifies procedures to be followed in connection with that review.

Requires the executive director of the department of revenue to publish rules pertaining to the state income tax modification allowed by the act. Requires the modification to be included on income tax forms for the year in which it is allowed.

APPROVED by Governor May 22, 2000
EFFECTIVE May 22, 2000

H.B. 00-1209 Income tax - expansion of income tax modification for capital gains - refund of excess state revenues to comply with TABOR. Makes applicable to any income tax year commencing during 1999 the existing modification to Colorado taxable income that excludes net capital gains earned on Colorado real or tangible personal property or ownership interests in Colorado businesses acquired prior to May 9, 1994, and held for more than 5 years if the transaction from which the net capital gains arise occurs during any income tax year commencing on or after January 1, 2000, for which the amount of excess state revenues for the state fiscal year ending in the income tax year is at least $260,000,000 as annually adjusted for inflation. For any income tax year commencing on or after January 1, 2001, modifies this income tax modification by reducing the holding period to one year and increasing the excess state revenues threshold for allowing the modification to $430,000,000 as annually adjusted for inflation.

H.B. 00-1211 Special fuel - tax refund. Eliminates the requirement that a vehicle equipped with a power take-off unit be equipped with an approved metering device before a person who purchases special fuel for use and actually uses such specified fuel in such a vehicle may claim a refund of tax paid on such special fuel.

Requires the executive director of the department of revenue to:

Calculate the amount of the tax refund for special fuel used off roads in accordance with industry-specific percentages that can be justified by studies done by industries that use special fuels off roads and studies done by other states for refunds of tax imposed on special fuel used off roads; and
Set such percentages by rule.

APPROVED by Governor March 15, 2000
EFFECTIVE July 1, 2000

H.B. 00-1257 Sales and use tax - refund - taxes paid for pollution control equipment to refund excess state revenues to comply with TABOR - appropriation. For state fiscal years commencing on or after July 1, 1999, if the controller certifies that the amount of excess state revenues for that state fiscal year equals or exceeds $350 million, and the voters statewide have not authorized the state to retain and spend all of the excess state revenues or have authorized the state to retain and spend only a portion of the excess state revenues for that fiscal year, allows a qualified taxpayer to claim a refund of all state sales and use tax paid by the qualified taxpayer on the sale, purchase, storage, use, or consumption of pollution control equipment during that fiscal year (the refund).

Requires any qualified taxpayer claiming the refund to submit a refund application, including any documentation required, to the department of revenue between January 1 and April 1 of the state fiscal year immediately following the state fiscal year for which the refund is claimed. Prohibits the allowance of the refund to any qualified taxpayer who fails to comply with the refund application requirements.

Requires the executive director of the department of revenue to publish any refund allowed in any given state fiscal year in department rules. Specifies that if the controller certifies that the excess state revenues for the state fiscal year commencing on July 1, 1999, are less than $350 million, the refund shall not be allowed for the state fiscal year commencing on July 1, 2000. Specifies that for state fiscal years commencing on or after July 1, 2000, if the controller certifies that the amount of excess state revenues is less than $350 million, as adjusted by the executive director of the department of revenue, the refund shall not be allowed for the state fiscal year immediately following said fiscal year.

Declares that this refund is a reasonable method of refunding excess state revenues.

Defines "pollution control equipment" as any personal property that is certified by the division of administration of the department of public health and environment or that is installed, constructed, or used:

To eliminate, reduce, or prevent air, water, noise, or other environmental pollution;
To comply with the "Colorado Mined Land Reclamation Act", the underground storage tanks laws, or the "Colorado Surface Coal Mining Reclamation Act";
For testing, monitoring, or sampling or for gathering information or data required to be collected by any pollution control agency of the state, federal, or a local government; or
Primarily as repair, replacement, or operational parts, tools, or supplies to operate or maintain pollution control equipment.

Excludes from the definition of "pollution control equipment" the following:

Any equipment, machinery, device, or system installed, constructed, or used in or on any residential building or structure;
Any motor vehicle emission control device installed, constructed, or used in or on a motor vehicle to reduce such motor vehicle's air pollutant emissions; or
Any residential sewage disposal system or domestic sewer line.

Establishes a process by which property that is installed, constructed, or used to indirectly reduce pollution may be certified as pollution control equipment by the division of administration of the department of public health and environment for purposes of claiming the refund. Establishes a certification application fee and creates the pollution control equipment certification fund in which the proceeds from the application fee are to be deposited. Authorizes the division to use moneys in the fund to cover its actual and direct costs in making certification determinations.

Appropriates $16,583 and 0.5 FTE to the department of revenue for the implementation of the act. Allows for the appropriation by reducing the appropriation in the 2000 long bill to the capital construction fund for further appropriation to the department of highways for highway construction projects by $16,583.

H.B. 00-1259 Sales and use tax - reduction in rate - reduction of sales and use tax on large commercial vehicles - refund excess state revenues to comply with TABOR - appropriation. On and after January 1, 2001, reduces the state sales tax rate imposed upon sales of commodities and services in Colorado from 3% to 2.9% of the amount of the sale and reduces the state use tax rate imposed upon the storage, use, or consumption of articles of tangible personal property purchased at retail in Colorado from 3% to 2.9% of the storage or acquisition charges or costs. Adjusts the amount of the total sales or use tax that may be imposed by the state, any county, and any city or town to reflect the state sales and use tax reduction authorized by this act. Adjusts the percentage of the net revenue from sales and use tax that is allocated to the highway users tax fund.

For state fiscal years commencing on or after July 1, 2000, if the revenue estimate prepared by the staff of the legislative council in June of the calendar year in which that fiscal year ends indicates that the aggregate amount of state revenues will exceed the limitation on state fiscal year spending for that fiscal year by $350,000,000 or more, as annually adjusted for inflation, and the voters statewide either have not authorized the state to retain and spend all of the excess state revenues or have authorized the state to retain and spend only a portion of the excess state revenues for that fiscal year, the sales and use tax imposed upon any sale of a new or used commercial truck, truck tractor, tractor, semitrailer, or vehicle used in combination therewith that has a gross vehicle weight rating in excess of 26,000 pounds for the period commencing on July 1 of the calendar year in which that fiscal year ends through June 30 of the immediately subsequent calendar year shall be at a rate of 1/100th of 1%.

Specifies that if one or more ballot questions are submitted to the voters at a statewide election to be held in November of any calendar year commencing on or after January 1, 2001, that seek authorization for the state to retain and spend all or any portion of the amount of excess state revenues, the executive director of the department of revenue shall not determine whether the sales tax rate reduction shall be allowed until the impact of the results of the election on the amount of the excess state revenues to be refunded is ascertained.

Requires the executive director of the department of revenue to publish rules pertaining to the state sales and use tax rate reduction on vehicles allowed by the act.

Appropriates $50,459 from the general fund to the department of revenue for implementation of the act. Allows for the appropriation by reducing the appropriation made in the 2000 long bill to the capital construction fund for appropriation to the department of transportation for highway construction projects by $50,459.

APPROVED by Governor May 31, 2000
EFFECTIVE May 31, 2000

H.B. 00-1268 Property tax - assessment of property - assessment deadlines - assessment data. Include in the definition of "school" for property tax purposes a not-for-profit licensed child care center that offers an educational program for not more than 6 hours per day, employs educators trained in preschool through 8^th grade educational instruction, is licensed by an appropriate state agency, and is not otherwise qualified as a school or as a religious institution.

Allows a county assessor to consider a gross rent multiplier as a unit of comparison within the market approach to appraisal when determining the actual value of residential real property.

Requires a county assessor to make available to any taxpayer or agent of a taxpayer the data used by the assessor to determine the actual value of any property owned by the taxpayer within 7 working days following the receipt of a written request for the data from the taxpayer or agent. Requires the assessor to advise the taxpayer or agent of the estimated cost of providing the data upon receipt of the request and collect the estimated cost before providing the data. Allows the assessor to bill the taxpayer or agent for any reasonable cost above the estimated cost subject to a statutory maximum amount.

Requires the assessor in a county that has made an election to use an alternate protest and appeal procedure to complete the annual assessment roll by November 21.

Regarding notice of valuation and appeals of valuation, specifies that producing and nonproducing mines follow the same calendar as personal property.

With respect to any hearing on appeal of a property valuation that was heard by a referee, requires a county board of equalization to make available to any taxpayer or agent of a taxpayer the referee's findings and recommendations within 7 working days following the receipt of a written request for the findings and recommendations from the taxpayer or agent. Requires the board to advise the taxpayer or agent of the estimated cost of providing the findings and recommendations upon receipt of the request and collect the estimated cost before providing the findings and recommendations. Allows the board to bill the taxpayer or agent for any reasonable cost above the estimated cost subject to a statutory maximum amount.

Extends the deadline by which the state board of equalization must complete the annual review of county abstracts of assessment from October 30 to December 20.

APPROVED by Governor June 1, 2000
EFFECTIVE August 2, 2000
NOTE: This act was passed without a safety clause. For further explanation concerning the effective date, see the note from page vi of this digest.

H.B. 00-1270 Sales and use tax - exemption - motor vehicles held for resale. Clarifies that any motor vehicle purchased and held by a motor vehicle dealer for resale in the state is considered to be in the regular course of business and is not subject to the sales or use tax until the vehicle is sold at a retail sale.

VETOED by Governor May 26, 2000

H.B. 00-1274 Income tax - exclusion of qualified state tuition program contributions. Commencing with the 2001 state income tax year, allows payments or contributions made under an advance payment contract, to a savings trust account, or otherwise in connection with a qualified state tuition program to be subtracted from federal taxable income for the purpose of calculating state income tax liability. With specified exceptions, allows exclusions to be recaptured if distributions are not used to pay higher education expenses.

APPROVED by Governor May 25, 2000
EFFECTIVE August 2, 2000
NOTE: This act was passed without a safety clause. For further explanation concerning the effective date, see the note from page vi of this digest.

H.B. 00-1302 Income tax - tax credit for low income housing. For income tax years commencing on or after January 1, 2001, allows a state income tax credit to qualified taxpayers who own qualified low-income housing developments and who have been allocated such a credit by the Colorado housing and finance authority (CHAFA). Authorizes CHAFA to allocate annually from January 1, 2001, to December 31, 2002, an aggregate amount of up to $5,000,000 plus the amount of any unallocated credits for preceding calendar years plus the amount of any credit recaptured or otherwise returned to CHAFA to qualified taxpayers. Authorizes CHAFA to determine the amount of any credit allocated subject to prescribed guidelines. Prohibits allocation of a credit unless specified conditions are met by the qualified development, the developer, and CHAFA.

Specifies that the full amount of any credit allocated may be claimed for 4 taxable years beginning with the taxable year in which a qualified development is placed in service. Allows any amount of a credit that exceeds a qualified taxpayer's income tax liability for a given taxable year to be carried forward until as late as 2012, but requires the credit to be applied first to the earliest years possible. Allows for the recapture by the state of certain credits under specified circumstances.

Allows an insurance company that is exempt from state income tax to claim and carry forward the credit against the state tax on insurance premiums to the same extent that a taxpayer would be able to claim and carry forward the credit against state income tax.

Specifies filing requirements for claiming the credit. Requires CHAFA and the executive director of the department of revenue to promulgate rules to administer the tax credit and to monitor compliance with respect to the credit.

APPROVED by Governor May 24, 2000
EFFECTIVE August 2, 2000
NOTE: This act was passed without a safety clause. For further explanation concerning the effective date, see the note from page vi of this digest.

H.B. 00-1310 Insurance premium taxes - unemployment insurance - temporary credit - conditions. For calendar years 2001 and 2002, allows most employers a 20% credit against unemployment insurance taxes so long as the amount in the unemployment insurance fund equals at least 1.1% of the total amount of insured wages paid in Colorado during the preceding year. To be eligible for the credit, an employer:

Must have paid all required taxes and filed all required reports;
May not be a negative-excess employer that is assessed the maximum allowable rate; and
May not elect to make reimbursement payments in lieu of taxes.

APPROVED by Governor March 16, 2000
EFFECTIVE March 16, 2000

H.B. 00-1348 Income tax - credit against tax - conservation easements - refunds - appropriation. For a donation of a conservation easement by a general partnership, limited partnership, limited liability company, or other entity that does not file as a corporation for state income tax purposes, allocates the tax credit for that donation to the partners or shareholders.

For income tax years commencing on or after January 1, 2000, allows a taxpayer who claims a state income tax credit for a conservation easement to make an election each year to have the unused portion of the credit refunded to the taxpayer. Specifies that if this refund is claimed, the aggregate amount of the refund and amount of the credit used as an offset against income taxes shall not exceed $20,000 for that income tax year. Allows the refund only when the state has excess revenues for the state fiscal year ending in the tax year for which the refund is claimed.

Allows a taxpayer to transfer all or a portion of a credit to another taxpayer subject to specified restrictions.

Appropriates $69,300 to the department of revenue for the implementation of the act.

H.B. 00-1350 Local use tax - definition of "construction and building materials". Clarifies that local sales and use taxes are not imposed upon parts or materials utilized in the fabrication, construction, assembly, or installation of ski area passenger tramways that are purchased, sold, used, stored, or consumed by ski operators and their contractors.

APPROVED by Governor May 26, 2000
EFFECTIVE May 26, 2000

H.B. 00-1351 Income tax - credit for child, child care expenses, and child care facilities - refund of excess state revenues. For any income tax year commencing on or after January 1, 2000, for which the amount of excess state revenues for the state fiscal year that ends in such income tax year exceeds $290,000,000, as annually adjusted for inflation:

Supplements the existing child care expenses tax credit with a new child care expenses tax credit in an amount equal to 20% of the amount of the federal child care expenses tax credit and allows an individual whose federal adjusted gross income is more than $60,000 but less than $64,001 a child care expenses tax credit in an amount equal to 70% of the amount of the federal child care expenses tax credit.
Supplements the existing child tax credit with a new child tax credit of $100 for each qualifying child who is 5 years of age or under at the end of the income tax year for which the credit is claimed and allows an individual whose gross income is more than $60,000 but less than $64,001 a child tax credit of $300 for each such qualifying child.
Allows a resident individual whose federal adjusted gross income is less than $64,001 and who operates a family child care home a child tax credit of $300 for each qualifying child for whom the individual claims a federal child tax credit who is 6 years of age or older but less than 13 years of age at the end of the income tax year for which the credit is claimed and is in full-time care or before-and-after school care in the family child care home.

Requires the executive director of the department of revenue to publish any new child care expenses and child tax credits allowed in rules and include such credits in the income tax forms for each year in which they are allowed.

For income tax years beginning on or after January 1, 2000, modifies the tax credit for any monetary or in-kind contribution that promotes child care in the state so that a credit is no longer allowed for in-kind contributions and the amount of the credit allowed for any monetary contribution is increased from 25% to 50% of the total value of the contribution.

APPROVED by Governor May 23, 2000
EFFECTIVE May 23, 2000

H.B. 00-1358 Property tax - tax deferred property - interest accrual. Specifies that, on and after January 1, 2001, the rate of interest on real property taxes deferred, which is currently set at 7% per annum, shall be the equivalent of the rate of interest per annum on the most recently issued 10-year United States treasury note, rounded to the nearest 1/10%, as reported by the "Wall Street Journal", as of February 1 of the calendar year in which the claim for deferral is filed. Specifies that, on and after January 1, 2001, interest shall accrue on taxes deferred at that rate beginning May 1 of the calender year in which the deferral is claimed until the date on which the taxes are paid.

APPROVED by Governor May 25, 2000
EFFECTIVE May 25, 2000

H.B. 00-1439 Property tax - producing mines - valuation for assessment. Changes the period of years for which any owner or operator of a producing mine may request permission to state an average figure for certain items required in the statement that such owner or operator must file with the county assessor for purposes of valuation of such mine to any 3-year, 5-year, or 10-year period, instead of either the 3-year or 5-year period, immediately preceding January 1 of the year in which the statement must be filed.

APPROVED by Governor May 22, 2000
EFFECTIVE August 2, 2000
NOTE: This act was passed without a safety clause. For further explanation concerning the effective date, see the note from page vi of this digest.

H.B. 00-1440 Internet access services - moratorium on taxing, regulating, or charging a fee. Effective April 30, 2001, prohibits:

The state from imposing, assessing, or collecting any tax, regulation, fee, or charge upon the direct charges for provision of internet access services, whether offered separately or as part of a package or bundle of services, or any provider of internet access services as a means of collecting sales or use taxes from persons who purchase taxable property or services through use of the internet unless the provider acts as a vendor of taxable property or services.
A statutory or home rule city and county, county, city, or town, or any political subdivision of the state from imposing, assessing, or collecting any tax, fee, or charge upon the direct charges for provision of internet access services, whether offered separately or as part of a package or bundle of services. Excludes from the prohibition any taxes on internet access services actually collected and enforced by a home rule city on or before April 15, 1998, and any franchise fee on interactive computer services delivered through a cable television system.
Requiring a provider of internet access services to collect sales or use taxes from persons who purchase taxable property or services through use of the internet unless the provider acts as a vendor of taxable property or services.

Makes legislative findings regarding access to the internet, internet taxation, and economic development. Declares that the imposition, assessment, or collection of any tax, fee, or charge upon the direct charges for the provision of internet access service is a matter of statewide concern and that the provisions of the act preempt any local government ordinance, resolution, regulation, or other restriction to the contrary.

H.B. 00-1470 Greyhound racing - taxation - allocation - greyhound winners' awards program. Reduces the tax imposed on the gross receipts derived from pari-mutuel wagering on greyhound racing from 4 ¼% to ¾ %. Increases the percentage of those gross receipts allocated as purses from 5 % to 6 %.

Creates a greyhound winners' awards program for the purpose of awarding winners' awards to the owners of Colorado greyhounds that win greyhound races. Requires ¼ % of the gross receipts derived from pari-mutuel wagering on greyhound racing, less actual administrative costs, to be paid as awards under the program. Specifies that the amount of the winners' award for each race shall be determined by a point system consistent with the purse structure set forth in the greyhound race meet agreement between the greyhound racing licensee conducting a race meet and the organization that represents a majority of the kennel owners participating at the race meet. Requires all winners' award moneys payable by a greyhound racing licensee to be retained in a trust account until paid out and requires all interest earned on those moneys to be added to the moneys paid out as winners' awards.

VETOED by Governor May 26, 2000

H.B. 00-1473 Property tax - public utilities - assessment - assessment appeals. Excludes from the definition of "public utility", for the purposes of property tax valuation of public utilities, an affiliate or subsidiary of a public utility that is not doing business in this state as a railroad company, airline company, electric company, rural electric company, telephone company, telegraph company, gas company, gas pipeline carrier company, domestic water company selling at retail except nonprofit domestic water companies, pipeline company, coal slurry pipeline, or private car line company.

Allows any public utility, assessor, or board of county commissioners that is adversely affected by the property tax administrator's valuation to appeal to the Denver district court for a trial de novo or to the board of assessment appeals.

APPROVED by Governor June 1, 2000
EFFECTIVE June 1, 2000

H.B. 00-1479 Excise tax on fuels - administration - consolidation of special fuels and gasoline tax provisions. Relocates statutory provisions concerning the excise tax on special fuel into the provisions concerning the excise tax on gasoline, in order that the administration of the excise tax on both kinds of fuels will be governed by the same provisions.

Specifies that the excise tax imposed upon special fuel, now computed upon the amount of the fuel sold, is to be computed upon the amount of the fuel acquired to conform with statutory provisions pertaining to the imposition and collection of the excise tax on gasoline.

Changes the requirements pertaining to the posting of a surety bond by a distributor of gasoline or special fuel.

Specifies that, for purposes of counting the 3 tax-deferred transactions in connection with the tax imposed on special fuel, counting begins when the gasoline or special fuel first enters Colorado, whether by truck or rail.

Eliminates duplicative statutory provisions concerning reporting requirements for exporters of gasoline or special fuel.

Requires terminal operators to be licensed.

APPROVED by Governor June 1, 2000
EFFECTIVE October 1, 2000
NOTE: This act was passed without a safety clause. For further explanation concerning the effective date, see the note from page vi of this digest.