Taxation - Digest of Bills

Digest of Bills - 2007

TAXATION

S.B. 07-200 Uranium mill tailing remedial action - use of local government severance tax fund for cleanup - changes to oversight committee. Requires moneys in the local government severance tax fund to be distributed to the department of public health and environment (department) to be used for certain remedial actions related to the cleanup of uranium mill tailings. Requires up to $50,000 from the fund to be distributed to political subdivisions for reimbursement of costs related to the cleanup of uranium mill tailings.

Changes the name of the uranium mill tailings remedial action program fund oversight committee to the uranium mill tailings remedial action oversight committee (oversight committee). Modifies the composition of the oversight committee. Expands the scope of a report prepared by the department to include certain remedial actions related to the cleanup of uranium mill tailings. Requires the report to be given at a meeting of the oversight committee. Requires the oversight committee to make its recommendations to the joint budget committee within a certain time.

Extends the repeal date of the section that creates the uranium mill tailings remedial action program fund and the oversight committee.

APPROVED by Governor May 29, 2007
EFFECTIVE May 29, 2007

S.B. 07-253 Severance taxes - federal mineral lease royalties - forecasts. To assist in the preparation of state budgets, directs the staff of the legislative council to prepare, in consultation with the office of state planning and budgeting, quarterly forecasts of revenues derived from state severance taxes and federal mineral lease royalties. Directs a legislative interim study committee regarding severance tax allocations to study price insurance contracts regarding oil and gas revenues.

APPROVED by Governor June 1, 2007
EFFECTIVE June 1, 2007

H.B. 07-1051 Property tax - notice of delinquency. Requires the notice sent by a county treasurer to a taxpayer for unpaid property taxes to state that the amount of the delinquency must be paid by the date specified in the notice, which shall not be less than 15 days from the date of mailing of the notice. Requires the notice to further specify that the treasurer will advertise and sell a tax lien on the property if the amount of the delinquency is not paid.

APPROVED by Governor February 20, 2007
EFFECTIVE February 20, 2007

H.B. 07-1106 Property tax - assistance - heat or fuel expenses - assistance for the elderly or disabled - income eligibility threshold increase. For 2008, increases the yearly income thresholds used to determine whether an elderly or disabled person is eligible to receive a grant for real property tax assistance or for residential heat or fuel expenses, as well as the amount of the grant. Adjusts the thresholds by inflation for subsequent years.

APPROVED by Governor May 30, 2007
EFFECTIVE August 3, 2007
NOTE: This act was passed without a safety clause. For further explanation concerning the effective date, see page vi of this digest.

H.B. 07-1139 Local government severance tax fund - allocation. Increases the percentage of state severance tax revenues credited to the local government severance tax fund that are allocated to local governments on the basis of the residency of persons who work in mineral extraction industry operations from 15% to 30%.

APPROVED by Governor May 29, 2007
EFFECTIVE May 29, 2007

H.B. 07-1177 Property tax - biennial adjustment of ratio of valuation for assessment. Sets the ratio of valuation for assessment for residential real property for the 2007 and 2008 property tax years at 7.96% of actual value.

APPROVED by Governor May 31, 2007
EFFECTIVE May 31, 2007

H.B. 07-1201 Income tax - voluntary contribution to the pet overpopulation fund. Extends the period that state income tax return forms shall include a line whereby individual taxpayers may make a voluntary contribution to the pet overpopulation fund.

APPROVED by Governor April 2, 2007
EFFECTIVE August 3, 2007
NOTE: This act was passed without a safety clause. For further explanation concerning the effective date, see page vi of this digest.

H.B. 07-1251 Property tax - exemption for qualifying disabled veterans - implementation. Makes the statutory changes necessary to implement the property tax exemption for qualifying disabled veterans created by the registered electors of the state through the approval of referendum E at the 2006 general election.

APPROVED by Governor April 15, 2007
EFFECTIVE April 15, 2007

H.B. 07-1277 Sales and use tax - exemption - cleanrooms. For the next 10 fiscal years, exempts from the sales and use tax purchases in excess of $500 of machinery that comprises a cleanroom used to produce tangible property, including but not limited to computer components, microprocessors, blank and written software media, other high-tech manufacturing, biotechnological, nanotechtechnological, and photonics products, and pharmaceuticals.

Defines "machinery that comprises a cleanroom" to include all apparatus that is part of a system to control airflow, temperature, humidity, chemical purity, other environmental conditions, or manufacturing tolerances, regardless of whether it is attached to real property or contained within the cleanroom. Specifies that "machinery that comprises a cleanroom" does not include a building or a permanent, nonremovable component of a building that houses a cleanroom.

Disallows the sales and use tax exemption in a year in which the amount of total general fund revenues will be less than the statutory limit on general fund appropriations, according to the revenue estimate prepared by the staff of the legislative council.

APPROVED by Governor May 31, 2007
EFFECTIVE July 1, 2007

H.B. 07-1279 Sales and use tax - exemptions - machinery used to produce renewable energy - machinery used to produce electricity under long-term contract. Exempts from sales and use tax purchases of machinery and machine tools used to produce electricity from a renewable energy source, including wind. Exempts from sales and use tax purchases of machinery and machine tools used to produce electricity in a facility for which a long-term power purchase agreement was fully executed between February 5, 2001, and November 7, 2006.

APPROVED by Governor May 23, 2007
EFFECTIVE May 23, 2007

H.B. 07-1309 Oil and gas - severance tax - monthly estimated payments and withholding payments - electronic payments - appropriation. Requires estimated tax and withholding payments related to the oil and gas severance tax to be made on a monthly basis instead of quarterly. Requires the payments to be made electronically.

For a period of 3 years, requires additional interest earned in the severance tax funds as a result of the more frequent and electronic estimated tax and withholding payments to be transferred to a new fund and continuously appropriated to the governor's energy office to be used for a program to improve the energy efficiency of public schools.

Creates an exception to the requirement that tax information be kept confidential in order to permit the department of revenue to provide the legislative council staff with the information it needs to calculate the additional interest earned.

Appropriates $489,000 to the office of the governor for allocation to the governor's energy office for the implementation of the act.

APPROVED by Governor May 30, 2007
EFFECTIVE May 30, 2007

H.B. 07-1354 Income tax - voluntary contribution - Colorado breast and women's reproductive cancers fund. Creates the Colorado breast and women's reproductive cancers fund (fund) in the state treasury. If there are no more than 14 other lines on the Colorado state individual income tax forms for voluntary contributions for the state income tax year commencing January 1, 2007, for income tax years commencing on or after January 1, 2007, but before January 1, 2010, requires a voluntary contribution designation line for the fund to appear on individual income tax return forms. Repeals the new voluntary contribution effective January 1, 2011, unless the general assembly continues or reestablishes it before said date.

Requires the department of revenue (department) to determine annually the total amount designated to the fund and to report that amount to the state treasurer and the general assembly. Requires the state treasurer to credit that amount to the fund.

Requires the general assembly to appropriate annually from the fund to the department its costs of administering moneys designated as contributions to the fund. Requires all moneys remaining in the fund at the end of a fiscal year to be transferred to the Colorado cancer coalition, and requires the coalition to administer the moneys in furtherance of the work of the Colorado breast cancer task force and its partners.

Makes legislative findings and declarations.

States that the act shall take effect September 1, 2007, but only if, on or before that date, the executive director of the department of revenue files a written certification with the revisor of statues that there are no more than fourteen other lines on the Colorado state individual income tax forms for voluntary contributions for the state income tax year commencing January 1, 2007.

APPROVED by Governor May 31, 2007
EFFECTIVE September 1, 2007

H.B. 07-1361 Income tax - conservation easements - disclosure, appraisal, and reporting requirements. Requires an organization that accepts a conservation easement in gross for which a state income tax credit is claimed to submit specified information to the department of revenue (department), the department of agriculture, and the department of natural resources about the organization and the easements it holds. Requires the information to be made available to the public.

Requires a taxpayer who claims a state income tax credit for donating a conservation easement to submit to the department:

● Statements reflecting the specific nature, location, and value of the easement and the amount of the credit claimed, some of which shall be made available to the public;

● An affidavit from an appraiser that specifies the value of a conservation easement for which a credit is claimed, the property subject to the easement, and certain information regarding the manner in which the appraisal was conducted; and

● An affidavit containing specified information from the holder of the easement that was filed with the department, the department of agriculture, and the department of natural resources.

Requires the appraisal for a conservation easement to be a qualified appraisal from a qualified appraiser in accordance with specified provisions of federal law. Requires the appraiser to hold a valid license in the state as a certified general appraiser and requires the appraisal to be in conformance with the uniform standards for professional appraisal practice. Requires the department to report substantial and gross valuation misstatements in conservation easement appraisals to the state board of real estate appraisers.

Authorizes the department to require a second appraisal if an appraisal of a conservation easement represents a gross valuation misstatement. Clarifies that the transferee of a credit shall be subject to the same statute of limitations as the transferor of the credit. Requires the department to create specified public reports on the location, size, and value of conservation easements for which credits are granted, the amount of credits granted, and other information related to the easements and credits.

APPROVED by Governor May 24, 2007
EFFECTIVE August 3, 2007
NOTE: This act was passed without a safety clause. For further explanation concerning the effective date, see page vi of this digest.

H.B. 07-1372 Severance tax trust fund - fiscal adjustments to meet operational account reserve requirements. In order to ensure that reserve requirements for the operational account of the severance tax trust fund are met:

● Modifies the timing and amount of statutory allocations of moneys from the operational account of the severance tax trust fund to the water supply reserve account; and

● Eliminates appropriations to the governor's office that were rendered unnecessary by the appointment of the executive director of the department of natural resources as the director of compact negotiations for the interbasin compact committee.

APPROVED by Governor June 1, 2007
EFFECTIVE June 1, 2007