Taxation - Digest of Bills

Digest of Bills - 2001

TAXATION
S.B. 01-35 Specific ownership tax - class A and B personal property - taxable value - appropriation. Changes the taxable value of class A and B personal property with 16,000 pounds or less empty vehicle weight from the actual purchase price to 75% of the manufacturer's suggested retail price for the purposes of specific ownership tax. Instructs the department of revenue to make retroactive specific ownership tax adjustments in the form of credits against such future taxes.

Makes an appropriation.

APPROVED by Governor May 22, 2001
EFFECTIVE May 22, 2001

S.B. 01-37 Unclaimed refunds or grants - conversion into unclaimed property that may be claimed under the "Unclaimed Property Act". On and after October 1, 2002, requires the department of revenue to forward to the state treasurer specified information regarding any state income tax refund or grant for property taxes, rent, or heat or fuel expenses assistance represented by a warrant that has not been presented for payment within 6 months from its date of issuance and that has been cancelled by the department or by the state controller in accordance with standard operating procedures and an amount of money equal to the amount of the warrant. On and after October 1, 2002, gives the amount of such a refund or grant the status of unclaimed property that is presumed abandoned and adds such amount to intangible property that may be claimed pursuant to the provisions of the "Unclaimed Property Act". Allows the department to reclaim from the unclaimed property fund any amount forwarded by the department to the state treasurer that was based on a warrant representing an erroneous refund or grant. Allows the department to assess a taxpayer who receives an erroneous refund or grant issued by the treasurer for the amount of the erroneous refund or grant.

Requires a person claiming a refund or grant represented by a cancelled warrant to file a claim for the amount of the refund or grant with the state treasurer under the "Unclaimed Property Act" rather than with the department of revenue. Requires the department and the state treasurer to cooperate to ensure that any taxpayer who contacts the department to claim the amount of a refund represented by a cancelled warrant is provided with the information or assistance necessary to obtain the refund from the state treasurer.

APPROVED by Governor May 30, 2001
EFFECTIVE August 8, 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.

S.B. 01-55 Agriculture - farm equipment - shipping aids. Changes the definition of farm equipment to clarify that sales and use tax exempt farm equipment includes shipping pallets, crates, or aids used in the transfer or shipping of agricultural products.

APPROVED by Governor March 28, 2001
EFFECTIVE July 1, 2001

S.B. 01-115 Property tax - deferral program - release of identifying information. Requires county treasurers and the state treasurer to deny requests from individuals, corporations, or other private entities to inspect or produce the names, addresses, phone numbers, social security numbers, and other identifying information of individuals who claim a property tax deferral under the state elderly property tax deferral program. States that this requirement shall not be construed to prohibit the disclosure of information:

Required in connection with granting or denying a claim for deferral;
Required in connection with an administrative, judicial, or other legal proceeding;
Required in connection with the conveyance, sale, or encumbrance of a specific property;
When the information is contained in a statistical compilation or other informational summary that does not disclose individual identifying information; or
When the individual claiming the exemption has agreed to the disclosure.

APPROVED by Governor March 30, 2001
EFFECTIVE August 8, 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.

S.B. 01-134 Sales and use tax - counties - mass transit - increase in maximum levy. Increases to 1%, the maximum county sales tax, use tax, or sales and use tax that a county outside the jurisdiction of the regional transportation district may levy for the purpose of financing, constructing, operating, or maintaining a mass transportation system within such county.

APPROVED by Governor June 8, 2001
EFFECTIVE June 8, 2001

H.B. 01-1001 Sales and use tax - refund - calculation. For tax years commencing on or after January 1, 2001, adds the following amounts to the amounts utilized for determining a qualified individual's state sales tax refund in years in which state revenues are in excess of the constitutional limitation on state fiscal year spending:

Lump-sum distributions from pension and profit sharing plans excluded from federal adjusted gross income pursuant to the federal internal revenue code; and
Certain interest income from state and local bonds.

Modifies who may claim a refund by requiring persons under a specified age to have state income tax liability in order to qualify.

APPROVED by Governor March 20, 2001
EFFECTIVE August 8, 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. 01-1005 Income tax - liability - innocent spouse relief. Grants relief from Colorado income tax liability and associated interest and penalties in cases where an individual files a joint income tax return upon which the individual's spouse, without the knowledge of the individual, has understated income tax liability. Allows such relief only in cases where the individual has been granted relief from federal income tax liability pursuant to federal law. Specifies that such relief shall be comparable to the federal relief granted.

APPROVED by Governor March 11, 2001
EFFECTIVE August 8, 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. 01-1081 Sales and use tax - refund - taxes paid for tangible personal property used for research and development to refund excess state revenues to comply with TABOR. For the state fiscal year commencing on July 1, 2002, if the state has excess revenues in that fiscal year, allows a qualified taxpayer to claim a refund of 50% of the state sales and use tax paid by the qualified taxpayer during that fiscal year on the sale, purchase, storage, use, or consumption of tangible personal property, including machinery, used in Colorado directly and predominantly for research and development or in a combined activity of research and development and manufacturing that is exempt from the state sales and use tax.

For state fiscal years commencing on or after July 1, 2003, if the state has excess revenues in any fiscal year, allows a qualified taxpayer to claim a refund of all state sales and use tax paid by the qualified taxpayer during that fiscal year on the sale, purchase, storage, use, or consumption of tangible personal property, including machinery, used in Colorado directly and predominantly for research and development or in a combined activity of research and development and manufacturing that is exempt from the state sales and use tax.

Requires any qualified taxpayer claiming the refund to submit a refund application, including any required documentation, 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 or after July 1, 2002, are less than $358,400,000, as adjusted by the executive director for the rate of growth of personal income, the refund shall not be allowed for the state fiscal year immediately following said fiscal year. Declares that the refund is a reasonable method of refunding excess state revenues.

Defines "research and development" as qualified research under the federal internal revenue code or research that has one of the following as its ultimate goal:

Basic research in a scientific or technical field of endeavor;
Advancing knowledge or technology in a scientific or technical field of endeavor; or
The testing or inspection of materials or products used for quality control by any qualified taxpayer engaged in, and only to the extent related to, qualified research.

Excludes the following from the definition of "research and development":

Market research;
Efficiency surveys;
Consumer surveys;
Advertising and promotions;
Management studies; and
Research in connection with literary, historical, social science, psychological, or other nontechnological activities.

APPROVED by Governor June 6, 2001
EFFECTIVE August 8, 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. 01-1082 Sale of tax liens - existing conservation easements not affected. Specifies that the execution of a tax deed by a county treasurer to the purchaser of a tax lien shall not affect the existence of any conservation easement claimed or existing prior to the execution of such deed.

APPROVED by Governor February 22, 2001
EFFECTIVE August 8, 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. 01-1090 Credits - donation of conservation easement. Increases the maximum available income tax credit for the donation of a conservation easement from $100,000 to $260,000. Limits the aggregate total of refunds and credits claimed to $50,000 per tax year, up from the current limit of $20,000 per tax year. Deletes the minimum threshold amount for transfers of the credit. Allows transferees to claim an unlimited number of credits. To the extent that a transferee pays value for the credit, deems the transferee to have used the credit to pay the transferee's tax obligations, if any.

APPROVED by Governor June 1, 2001
EFFECTIVE January 1, 2003
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. 01-1107 Severance tax trust fund - appropriation to the low-income energy assistance program. For the state fiscal year commencing on July 1, 2000, appropriates an amount not to exceed $10 million from the operational account of the severance tax trust fund to the department of human services to increase funding for the low-income energy assistance program.

APPROVED by Lieutenant Governor January 17, 2001
EFFECTIVE January 17, 2001

H.B. 01-1164 Colorado commission on taxation - extension of time to complete duties. Extends the time within which the Colorado commission on taxation has to complete its duties and provide a final report to the governor and the general assembly.

H.B. 01-1179 Income tax - amended return - change in federal taxable income. Requires a taxpayer to make and file an amended Colorado income tax return when the internal revenue service makes a final determination of the taxpayer's federal taxable income.

H.B. 01-1212 Sales and use tax - remittance - electronic funds transfers. For any calendar year commencing on or after January 1, 2002, requires any vendor whose liability for state sales tax only for the previous calendar year exceeded $75,000 to use electronic funds transfers to remit all state and local sales taxes to the executive director of the department of revenue. Authorizes the executive director to promulgate rules to effectively implement the electronic funds transfer requirement, but requires the executive director to first consult with the state treasurer to ensure that any rules promulgated do not adversely affect the ability of the state treasurer to optimize sales tax investment earnings. Prohibits the executive director from requiring taxpayers required to remit sales taxes by electronic funds transfers to remit sales taxes prior to the remittance deadline for taxpayers who remit sales taxes by other means.

APPROVED by Governor May 18, 2001
EFFECTIVE August 8, 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. 01-1223 Sales and use tax - exemption - bingo equipment. Exempts from sales and use taxes the sale, storage, use, or consumption of bingo equipment to or by a bingo-raffle licensee.

BECAME LAW by Governor June 9, 2001
EFFECTIVE July 1, 2001

H.B. 01-1224 Property tax - exemption for qualified seniors. For property tax years commencing on or after January 1, 2002, creates a property tax exemption for 50% of the first $200,000 of actual value of owner-occupied residential real property used as the primary residence of a qualifying senior who has owned and occupied the residential real property for 10 years as of the assessment date as follows:

Specifies that an individual who owns residential real property consisting of multiple-dwelling units may only claim an exemption for the unit he or she occupies as his or her primary residence and that no more than one exemption per year shall be allowed for any single-dwelling unit;
Specifies that only one exemption per property tax year may be claimed for a single dwelling unit of residential real property, regardless of how many owner-occupiers use the dwelling unit as their primary residence;
Specifies that spouses who own multiple pieces of residential real property are deemed to occupy the same primary residence and may only claim one exemption;
Specifies that an owner-occupier may claim an exemption for residential real property that he or she has not owned for 10 years as of the assessment date if the owner-occupier would have been able to claim an exemption for his or her previous residence but for the fact that the previous residence was condemned by a governmental entity through an eminent domain proceeding;
Requires each county assessor to mail annual notice of the exemption to each residential real property address in the assessor's county no later than May 1, 2002, and each May 1 thereafter;
Requires an individual claiming an exemption to file an exemption application with the appropriate county assessor no later than July 15 of the first property tax year for which an exemption is claimed;
Requires an applicant to provide specified information on an exemption application and requires the property tax administrator to prescribe the form of the exemption application;
Prescribes penalties for any applicant who knowingly provides false information on an exemption application, fails to advise the appropriate assessor within 60 days of any change in ownership or occupancy of residential real property that affects an exemption that has previously been applied for or allowed, or files more than one exemption application;
Requires completed exemption applications to be kept confidential subject to specified exceptions;
Requires each county assessor to deny any exemption application that is incomplete or that indicates that the applicant is not entitled to an exemption;
Requires each county assessor to mail to each applicant whose exemption has been denied a statement providing the reasons for the denial and informing the applicant of the applicant's right to contest the denial no later than August 15 of the property tax year for which the exemption application was filed;
Gives an applicant whose exemption application has been denied a right to contest the denial at an administrative hearing before the county commissioners sitting as the county board of equalization between September 1 and October 1 of the property tax year for which the exemption was filed;
No later than October 5, 2002, and no later than each October 5, thereafter, requires each county assessor to send the property tax administrator an annual report containing specified information about the property tax exemptions allowed in the assessor's county;
Requires the property tax administrator to examine the reports sent by each county assessor to ensure that no applicant has claimed multiple exemptions, to deny any exemption claimed by an applicant who has claimed more than one exemption, and to provide written notice to the applicant of any denied exemption no later than November 1, 2002, and no later than each November 1, thereafter;
Requires the reports to be kept confidential subject to specified exceptions;
Allows an individual whose claims for exemption were denied by the property tax administrator to file a written protest with the property tax administrator no later than November 15 of the year in which the exemptions were denied and requires the property tax administrator to resolve such protests no later than December 1 of the same year;
No later than December 1, 2002, and no later than each December 1 thereafter, requires the property tax administrator to provide written notice to the assessor of each county in which an exemption application has been denied because the applicant filed multiple exemption applications with the identity of the applicant who filed multiple exemptions and the denial of the exemption;
No later than April 1, 2003, and no later than each April 1 thereafter, requires each county treasurer to send the state treasurer an annual report containing specified information about the property tax exemptions allowed in the treasurer's county for the previous property tax year so that the state treasurer can reimburse each county for the amount of the exemptions allowed;
No later than April 15, 2003, and no later than each April 15 thereafter, requires the state treasurer to reimburse each county treasurer for property tax revenues lost by local governmental entities in the treasurer's county as a result of the exemption;
Specifies that such reimbursement shall not be subject to the statutory limitation on general fund appropriations;
Requires each county treasurer to distribute the moneys received from the state treasurer to local governmental entities as if the lost property tax revenues had been regularly paid and excludes such moneys from a local governmental entity's fiscal year spending; and
Requires the state auditor to periodically audit the exemption program, authorizes the auditor to suggest means of improving the administration of the program, and requires an assessor, a county treasurer, the property tax administrator, or the state treasurer to provide relevant documents to the state auditor upon request.

APPROVED by Governor April 25, 2001
EFFECTIVE April 25, 2001

H.B. 01-1256 Sales and use tax - exemption - dairy equipment. Expands the existing definition of "farm equipment", the sale, purchase, storage, use, and consumption of which is exempt under the state sales and use tax, to include dairy equipment regardless of purchase price.

Requires any incorporated town, city, or county that presently imposes a sales and use tax on dairy equipment to continue to impose such tax unless it adopts an ordinance or resolution that explicitly exempts such items from the state sales and use tax.

APPROVED by Governor April 19, 2001
EFFECTIVE July 1, 2001

H.B. 01-1257 Income tax - health care professional tax credit - inclusion of dentists and dental hygienists - extension - administration. For any income tax year commencing on or after January 1, 2001, adds dentists, and for any income tax year commencing on or after January 1, 2002, adds dental hygienists to the list of health care professionals that may claim the existing state income tax credit for health care professionals practicing in health care professional shortage areas.

Adds Broomfield to the list of counties constituting Colorado's metropolitan statistical area counties for purposes of the definition of rural health care professional shortage area.

Eliminates the requirement that a "rural health care professional shortage area", as applied to an area within certain designated counties, be located a specified distance from the nearest hospital containing 30 or more beds.

Extends allowance of the credit through the January 1, 2008, income tax year.

Clarifies that:

The credit shall only be allowed when the taxpayer is a health care professional practicing at least 20 hours per week;
Any student loan subject to the credit shall be issued under a recognized student loan program and made to and used by the student to finance higher education opportunities resulting in a qualifying health care professional degree;
The amount of any student loan subject to the credit shall be the sum of the balance due on the loan as of the beginning of the first income tax year for which the credit is claimed;
The certification form submitted by the taxpayer to claim the credit shall contain the identity of the qualifying loan and the balance due on the loan as of the first income tax year for which the credit is claimed;
The tax credit's recapture provisions apply to a taxpayer claiming the credit who either moves out of the rural health care professional shortage area or who ceases to practice in such area during the period that the taxpayer was committed to reside and practice in such area. Specifies that the taxpayer is to report the recapture by increasing the taxpayer's income tax liability by the amount of the total credit claimed for the year in which the recapture occurs.
The state fiscal years commencing on or after July 1, 1999, but prior to July 1, 2008, shall be used to determine whether excess state revenues for a particular fiscal year are sufficient to allow the credit.

H.B. 01-1287 Business personal property tax refund - increase in refund amount - modification of administration of refund - creation of appeals procedure. Increases the portion of business personal property tax paid to be refunded to a taxpayer as a credit against state taxes during state fiscal years commencing on or after July 1, 2001, for which credits may be allowed to an amount equal to 16% of the total amount of business personal property tax paid plus the lesser of 84% of the total amount of business personal property tax paid or $588. Replaces the requirement that each county treasurer and each county assessor forward information needed for the administration of the credit to the department of revenue with a requirement that each county treasurer send some of the information to the county assessor of the same county and that each county assessor forward all of the information to the department. Allows the assessor and treasurer of a county to agree to have the treasurer rather than the assessor forward the required information to the department. Allows the department to make the refund as late as November 30 if an unavoidable delay in processing the credit prevents the department from making refunds by the existing November 15 deadline.

Requires the controller's certification of excess state revenues, rather than the June revenue estimate prepared by legislative council staff, to determine whether there are sufficient excess state revenues in any given state fiscal year for a credit to be allowed during the next state fiscal year. Creates an appeals procedure for any qualified taxpayer who did not receive a credit or who believes that the amount of a credit received was less than the amount to which the qualified taxpayer was entitled.

APPROVED by Governor April 20, 2001
EFFECTIVE April 20, 2001

H.B. 01-1304 Income tax - deadline for filing claim for refund or credit - statute of limitations. Clarifies that the deadline for taxpayers to file claims for refund or credit of income tax is the period provided for filing a claim for refund of federal income tax plus one year, and is extended by the length of any extensions granted by the federal taxing authorities. Clarifies that the state will not pay any refund for which the claim is filed after this deadline.

States that no refund will be paid to any taxpayer, rather than any employee, who fails to file a return within 4 years after the return was required to be filed.

Clarifies that the statute of limitations for filing a claim for refund of income tax applies to persons who fail to file tax returns or file false or fraudulent returns.

APPROVED by Governor March 28, 2001
EFFECTIVE August 8, 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. 01-1312 Income tax - estimated tax - failure to pay - penalty for underpayment. Repeals and reenacts the provisions of law that require individual taxpayers to declare and pay estimated state income tax. Requires certain individual taxpayers to make and file estimated income tax payments. Requires that individual taxpayers make estimated tax payments to the department of revenue (department) in 4 equal payments throughout the year.

For individuals who underpay the estimated income tax owed, bases the penalty for such underpayment on the difference between the amount of money actually paid and the lesser of 70% of the current year's tax liability or 100% of the prior year's tax liability. If the actual estimated payments for the year exceed either 70% of the current liability or 100% of the prior year's liability, no underestimation penalty is due. For any taxpayer with an income greater than $150,000, requires that the calculation of the underestimation penalty be based on the difference between the amount of money actually paid and the lesser of 70% of the current year's tax liability or 110% of the prior year's tax liability.

Prescribes a waiver of penalty in cases where the estimated income tax is less than $1,000, in cases of newly retired or disabled individuals, or in any case where the executive director of the department determines that the underpayment was due to good cause shown by the taxpayer.

Directs the department to promulgate rules to regulate taxpayers who have elected annualized installments for the payment of federal income tax due to inconsistent earnings throughout the year.

Allows the fourth estimated payment of income tax to be paid by January 31, instead of January 15, if the payment is made with the return.

Establishes rules for farmers and fishermen that require a single installment that must be made by January 15 unless the taxpayer files his or her return by March 1.

Repeals and reenacts the provisions of law that require corporations to declare and pay estimated state income tax. Requires corporations to make and file estimated income tax payments. Requires that corporations make such estimated tax payments to the department in 4 payments throughout the year.

For corporations that underpay the estimated income tax owed, bases the penalty for the underpayment on the difference between the amount of money actually paid and the lesser of 70% of the current year's tax liability or 100% of the prior year's tax liability.

For certain large corporations that underpay the estimated income tax owed, bases the penalty for the underpayment on the difference between the amount of money actually paid and 70% of the current year's tax liability; except that the first required installment for any taxable year may be based on 25% of the taxpayer's actual Colorado tax liability shown on the return of the corporation for the preceding year. Requires that any reduction in the first installment be recaptured by increasing the amount of the next required installment.

Directs the department to promulgate rules to regulate corporations that have elected annualized installments for the payment of federal income tax due to inconsistent earnings throughout the year.

Prescribes a waiver of penalty in cases where the estimated tax is less than $5,000 or in any case where the executive director of the department determines that the underpayment was due to good cause shown by the taxpayer.

APPROVED by Governor June 1, 2001
EFFECTIVE August 8, 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. 01-1313 Income tax - credit against tax - foster care providers - refund of excess state revenues. For any income tax year commencing on or after January 1, 2001, for which the amount of excess state revenues for the state fiscal year that ends in such income tax year exceeds $200 million as annually adjusted for inflation, allows a state income tax credit in the amount of $500 for any resident individual taxpayer who:

Operates a foster care home during the taxable year for which the credit is claimed;
Provides one or more child with 24-hour family care for at least 180 days of the taxable year for which the credit is claimed; and
Incurs nonreimbursed expenses in connection with providing foster care for one or more child.

Specifies that if the amount of the credit allowed exceeds the amount of income taxes otherwise due on the taxpayer's income for the tax year for which the credit is claimed, the credit shall not be carried forward as a tax credit against the individual's subsequent year's income tax liability and shall be refunded to the individual.

APPROVED by Governor May 30, 2001
EFFECTIVE May 30, 2001

H.B. 01-1321 Equitable servitudes - effect of the execution of tax deeds. Specifies that the execution of a tax deed by a county treasurer to the purchaser of a tax lien shall not affect the existence of any equitable servitudes that run with land and have both benefits and burdens claimed or existing prior to the execution of the deed.

APPROVED by Governor April 9, 2001
EFFECTIVE August 8, 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. 01-1334 Property tax - exemption - low-income household residential facilities. Specifies that the property tax exemption for property that is used for charitable purposes includes property used for low-income household residential facilities:

That are operated as residential facilities for low-income households;
For which the published rent schedule includes rents that a low-income household can afford by expending no more than 30% of the household's total income for rent and utilities; and
For which the owner of the facility has shown that the rent for the property tax-exempt facility is lower than the rent for a facility that does not qualify for the property tax exemption by at least an amount equal to the value of the exemption.

Specifies that a low-income household is an individual or family whose total income is no greater than 30% of the area median income.

Authorizes the department of local affairs to contract with an independent contractor to process applications for the new property tax exemption and limits that contract to a 1 year term.

Specifies that the property tax exemption for low-income household residential facilities applies to property tax years commencing on or after January 1, 2003.

APPROVED by Governor June 8, 2001
EFFECTIVE August 8, 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. 01-1364 Income tax - returns - administration modifications. Modifies certain statutory provisions affecting the administration of state income tax returns.

Income tax modification to offset the marriage penalty. Corrects the modification to federal taxable income allowed under Colorado law to offset the marriage penalty to ensure that any taxpayer who is blind or over 65 years of age does not lose the benefit of any additional standard deduction allowed under the internal revenue code.

Long-term care insurance income tax credit. Clarifies the income tax credit available to taxpayers who purchase long-term care insurance to specify that, for 2 individuals filing a joint return, the credit is allowed not only if it is claimed for 2 policies but also if it is claimed for a joint policy that covers each individual separately.

Health care shortage areas income tax credit. In addition to existing qualifications, clarifies that the income tax credit available to health care professionals who practice in a rural health care professional shortage area is only available to a taxpayer who is:

A health care professional practicing at least 20 hours a week; and
A borrower on a student loan issued under a recognized student loan program that was used by said taxpayer to finance higher education opportunities resulting in a degree required to enable the taxpayer to be a licensed or certified health care professional.

Clarifies that the amount of the loan subject to the credit is the sum of the balance due on the loan as of the beginning of the first income tax year for which the credit is claimed. Requires the identity of the loan and the balance due on the loan as of said date to be certified. Clarifies that if a taxpayer claiming the credit either moves out of or ceases to practice in a rural health care professional shortage area during the period for which a commitment to reside and practice in said area was made, the taxpayer must repay the entire amount of the credit claimed, and specifies that the taxpayer is to report said recapture by increasing the taxpayer's income tax liability by the amount of the total credit claimed.

Income tax modification for net capital gains. Clarifies that the income tax modification allowed for the amount of net capital gains earned on property that was acquired before May 9, 1994, and that was owned by the taxpayer for at least 5 years applies in any state fiscal year commencing on or after July 1, 1998. Specifies that said modification is a mechanism to refund excess state revenues pursuant to the taxpayer's bill of rights that is only allowed in years in which state revenues exceed the limitation on state fiscal year spending by at least $260 million, as adjusted annually for changes in the rate of personal income growth.

Conservation easements income tax credit. Specifies that the income tax credit for conservation easements is available to partnerships, S corporations, or other similar pass-through entities, estates, or trusts that donate a conservation easement as an entity, and to partners, members, or subchapter S shareholders of said pass-through entities.

Clarifies that the amount of the credit does not include the value of any portion of an easement on real property that is located outside the state of Colorado. Specifies that a taxpayer claiming the credit need only submit a summary of a qualified appraisal of the property subject to the easement unless the department of revenue requests submission of the actual appraisal. Clarifies that the dollar limitation on the amount of the credit applies to:

The amount of the credit claimed by a taxpayer filing a joint federal return;
The sum of the credits claimed by taxpayers filing married separate federal returns; and
The amount of the credit allocated to partners, members, or shareholders of a pass-through entity.

Specifies that in cases where a partnership, S corporation, or other pass-through entity claims the conservation easement credit and claims a refund of any amount of the credit that exceeds that entity's tax liability, the aggregate amount of the refund and the credit claimed by the partners, members, or shareholders of said entity is not to exceed $20,000.

Individual development accounts income tax credit. Modifies the credit allowed for individuals contributing matching funds for individual development accounts to specify that, if the amount of the credit exceeds the individual's tax liability, said excess cannot be carried forward as a credit against subsequent years' income tax liability and must be refunded to the individual.

APPROVED by Governor April 19, 2001
EFFECTIVE August 8, 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. 01-1366 Property tax - valuation of assessment - residential real property adjustment of ratio. Sets the ratio of valuation for assessment for residential real property for the 2001 and 2002 property tax years at 9.15% of actual value.

APPROVED by Governor May 31, 2001
EFFECTIVE May 31, 2001

H.B. 01-1367 Excess state revenues - accounting practices - repeal of required overrefunding provisions. Repeals the requirement that the state sales tax refund mechanism used to refund excess state revenues as required by section 20 of article X of the state constitution (TABOR) be calculated to refund 105% of the amount of excess state revenues not refunded by other mechanisms.

Specifies that any amount that is refunded in excess of the amount that is required to be refunded by TABOR shall be accounted for as a refund of excess state revenues for the fiscal year following the fiscal year for which the moneys are refunded.

VETOED by Governor June 5, 2001