HOUSE BILL 22-1025
BY REPRESENTATIVE(S) Benavidez, Gonzales-Gutierrez, Gray,
Kennedy, Sirota, Titone;
also SENATOR(S) Kolker, Hansen, Buckner, Gonzales, Lee, Moreno,
Rodriguez.
C
ONCERNING THE REPEAL OF INFREQUENTLY USED TAX EXPENDITURES , AND,
IN CONNECTION THEREWITH, MAKING AN APPROPRIATION.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. In Colorado Revised Statutes, 10-3-910, repeal (3)
as follows:
10-3-910. Application of this part 9. (3) This part 9 shall not apply
to any life insurance company organized and operated, without profit to any
private shareholder or individual, exclusively for the purpose of aiding
educational or scientific institutions organized and operated without profit
to any private shareholder or individual by issuing insurance and annuity
contracts directly from the home office of the company and without agents
or representatives in this state only to or for the benefit of such institutions
and to individuals engaged in the services of such institutions, nor to any
policy or contract which it issues; but this exemption is conditioned upon
NOTE: This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor. To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
________
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act. any such company complying with the following requirements:
(a) Payment of an annual registration fee of five thousand dollars;
except that the commissioner by rule or as otherwise provided by law may
reduce the amount of the fee if necessary pursuant to section 24-75-402 (3),
C.R.S., to reduce the uncommitted reserves of the fund to which all or any
portion of the fee is credited. After the uncommitted reserves of the fund are
sufficiently reduced, the commissioner by rule or as otherwise provided by
law may increase the amount of the fee as provided in section 24-75-402
(4), C.R.S.
(b) Filing a copy of any policy or contract issued to Colorado
residents with the commissioner;
(c) Filing a copy of its annual statement prepared pursuant to the
laws of its state of domicile, as well as such other financial material as may
be requested with the commissioner; and
(d) Providing, in such form as may be acceptable to the
commissioner, for the appointment of the commissioner as its true and
lawful attorney upon whom may be served all lawful process in any action
or proceeding against such company arising out of any policy or contract it
has issued to, or which is currently held by, a Colorado citizen, and process
so served against such company shall have the same force and validity as
if served upon the company.
SECTION 2. In Colorado Revised Statutes, 39-22-104, amend (5)
as follows:
39-22-104. Income tax imposed on individuals, estates, and
trusts - single rate - report - legislative declaration - definitions - repeal.
(5) (a) F
OR INCOME TAX YEARS COMMENCING PRIOR TO JANUARY 1, 2023,
any person who is required by the terms of this article
ARTICLE 22 to file a
return whose only activities in Colorado consist of making sales, who does
not own or rent real estate within the state of Colorado, and whose annual
gross sales in or into this state amount to not more than one hundred
thousand dollars may elect to pay a tax of one-half of one percent of his
annual gross receipts derived from sales in or into Colorado in lieu of
paying an income tax.
PAGE 2-HOUSE BILL 22-1025 (b) THIS SUBSECTION (5) IS REPEALED, EFFECTIVE JULY 1, 2025.
SECTION 3. In Colorado Revised Statutes, 39-22-114.5, amend
(1); and add (4) as follows:
39-22-114.5. Tax credit for investment in technologies for
recycling plastics - repeal. (1) F
OR INCOME TAX YEARS COMMENCING
PRIOR TO
JANUARY 1, 2023, there shall be allowed to each resident
individual, as a credit against the income taxes imposed by this article
ARTICLE 22, a plastic recycling credit equal to twenty percent of net
expenditures to third parties for rent, wages, supplies, consumable tools,
equipment, test inventory, and utilities up to ten thousand dollars made by
the taxpayer for new plastic recycling technology in Colorado, with a
maximum credit of two thousand dollars. The tax credit allowed in this
section shall be applicable only to income related to the expenditures
described in this subsection (1).
(4) T
HIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2029.
SECTION 4. In Colorado Revised Statutes, 39-22-301, amend (2)
and (3)(b); and add (3)(e) as follows:
39-22-301. Corporate tax imposed. (2) (a) F
OR INCOME TAX
YEARS COMMENCING PRIOR TO
JANUARY 1, 2023, any corporation which is
required by the terms of this article
ARTICLE 22 to file a return, and whose
only activities in Colorado consist of making sales, and which does not own
or rent real estate within the state of Colorado, and whose annual gross sales
in or into this state amount to not more than one hundred thousand dollars
may elect to pay a tax of one-half of one percent of its annual gross receipts
derived from sales in or into Colorado in lieu of paying an income tax.
(b) T
HIS SUBSECTION (2) IS REPEALED, EFFECTIVE JULY 1, 2025.
(3) (b) F
OR INCOME TAX YEARS COMMENCING PRIOR TO JANUARY 1,
2023, there shall be allowed to taxpayers, as a credit with respect to the
income taxes imposed by this part 3, an amount equal to twenty-five percent
of the wholesale market price or twenty-five percent of the most recent sale
price of crop contributions or livestock contributions, or both, made to a
tax-exempt charitable organization. Credit, as provided for in this
subsection (3), may not exceed one thousand dollars per tax year.
PAGE 3-HOUSE BILL 22-1025 (e) THIS SUBSECTION (3) IS REPEALED, EFFECTIVE JULY 1, 2029.
SECTION 5. In Colorado Revised Statutes, 39-22-304, amend
(3)(e) as follows:
39-22-304. Net income of corporation - legislative declaration -
definitions - repeal. (3) There shall be subtracted from federal taxable
income:
(e) (I) F
OR AN INCOME TAX YEAR COMMENCING PRIOR TO JANUARY
1, 2023, the amount necessary to prevent the taxation under this article
ARTICLE 22 of any annuity or other amount of income or gain which was
properly included in income or gain and was taxed under the laws of this
state, for a taxable year prior to January 1, 1965, to the taxpayer, or to a
decedent by reason of whose death the taxpayer acquired the right to receive
the income or gain, or to a trust or estate from which the taxpayer received
the income or gain;
(II) T
HIS SUBSECTION (3)(e) IS REPEALED, EFFECTIVE JULY 1, 2024.
SECTION 6. In Colorado Revised Statutes, 39-22-507.5, amend
(1) introductory portion; and add (13) as follows:
39-22-507.5. Credits against tax - investment in certain property
- repeal. (1) Except as otherwise provided in this section, there shall be
allowed to any person as a credit against the tax imposed by this article
ARTICLE 22, for income tax years commencing on or after January 1, 1979,
BUT PRIOR TO JANUARY 1, 2023, an amount equal to the total of:
(13) T
HIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2031.
SECTION 7. In Colorado Revised Statutes, 39-22-507.6, amend
(1) introductory portion; and add (7) as follows:
39-22-507.6. Credits against corporate tax - investment in
certain property - repeal. (1) Except as otherwise provided in this section,
there shall be allowed to any person as a credit against the tax imposed by
part 3 of this article ARTICLE 22, for income tax years commencing on or
after January 1, 1988,
BUT PRIOR TO JANUARY 1, 2023, an amount equal to
the total of:
PAGE 4-HOUSE BILL 22-1025 (7) THIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2027.
SECTION 8. In Colorado Revised Statutes, 39-26-713, amend (1)
introductory portion and (2)(h); and repeal (1)(b) and (2)(i) as follows:
39-26-713. Tangible personal property. (1) The following shall
be exempt from taxation under the provisions of part 1 of this article
ARTICLE 22:
(b) The transfer of tangible personal property without consideration,
other than the purchase, sale, or promotion of the transferor's product, to an
out-of-state vendee for use outside of this state in selling products normally
sold at wholesale by the transferor;
(2) The following are exempt from taxation under part 2 of this
article 26:
(h) The storage, use, or consumption of tangible personal property
purchased by a resident of Colorado while outside the state in amounts of
one hundred dollars or less;
AND
(i) The storage, use, or consumption of tangible personal property
that is thereafter transferred to an out-of-state vendee without consideration,
other than the purchase, sale, or promotion of the transferor's product, for
use outside of this state in selling products normally sold at wholesale by
the corporation or person storing, using, or consuming said property; and
SECTION 9. In Colorado Revised Statutes, repeal 39-22-510 as
follows:
39-22-510. State-employed chaplains - designation of rental
allowance. (1) In the case of a chaplain, "salary" means the amount of
money or credit received as compensation for services rendered, exclusive
of mileage, traveling allowances, and other sums received for actual and
necessary expenses incurred in the performance of the state's business.
(2) The state of Colorado, being a tax-exempt entity, designates a
portion of the annual compensation of every chaplain who is employed
full-time by this state, in the amount of four thousand two hundred dollars,
as the payment of a rental allowance for the purpose of renting or providing
PAGE 5-HOUSE BILL 22-1025 a home for the chaplain and his family when such rent or home is not
provided by the state.
SECTION 10. In Colorado Revised Statutes, 39-22-517, amend (1)
and (2) as follows:
39-22-517. Tax credit for child care center investments. (1) With
respect to taxable years commencing on or after January 1, 1992, there shall
be allowed to any person operating a child care center, family child care
home, or foster care home licensed pursuant to the provisions of section
26-6-104, C.R.S.,
a credit against the tax imposed by this article ARTICLE 22
in the amount of twenty percent of the taxpayer's annual investment in
tangible personal property to be used in such child care center, family child
care home, or foster care home. Such credit shall be in addition to any credit
for which the taxpayer may be eligible pursuant to the provisions of section
39-22-507.5 or section 39-22-507.6.
(2) With respect to taxable years commencing on or after July 1,
1992, there shall be allowed to any sole proprietorship, partnership, limited
liability corporation, subchapter S corporation, or regular corporation which
provides child care facilities which are incidental to their business and are
licensed pursuant to section 26-6-104, C.R.S.,
for the use of its employees
a credit against the tax imposed by this article ARTICLE 22 in the amount of
ten percent of the taxpayer's annual investment in tangible personal property
to be used in such child care facilities. Such credit shall be in addition to
any credit for which the taxpayer may be eligible pursuant to the provisions
of section 39-22-507.5 or section 39-22-507.6.
SECTION 11. In Colorado Revised Statutes, 39-30-104, amend
(1)(a); and repeal (2)(a) as follows:
39-30-104. Credit against tax - investment in certain property
- definitions. (1) (a) In lieu of any credit allowable under section
39-22-507.5, There shall be allowed to any person as a credit against the tax
imposed by article 22 of this title TITLE 39, for income tax years
commencing on or after January 1, 1986, an amount equal to the total of
three percent of the total qualified investment, as determined under section
46 (c)(2) of the federal "Internal Revenue Code of 1986", as amended, in
such taxable year in qualified property as defined in section 48 of the
internal revenue code to the extent that such investment is in property that
PAGE 6-HOUSE BILL 22-1025 is used solely and exclusively in an enterprise zone for at least one year. The
references in this subsection (1) to sections 46 (c)(2) and 48 of the internal
revenue code mean sections 46 (c)(2) and 48 of the internal revenue code
as they existed immediately prior to the enactment of the federal "Revenue
Reconciliation Act of 1990".
(2) (a) For income tax years commencing prior to January 1, 2014,
the amount of the credit set forth in subsection (1) of this section shall be
subject to the limitations of section 39-22-507.5; except that, in computing
the limitations on credit pursuant to section 39-22-507.5 (3), a taxpayer's
actual tax liability for the income tax year shall not be reduced by the
amount of credits allowed by section 39-30-105.1 and the limit on that
portion of a taxpayer's tax liability that exceeds five thousand dollars shall
be fifty percent.
SECTION 12. Appropriation. (1) For the 2022-23 state fiscal year,
$30,750 is appropriated to the department of revenue. This appropriation is
from the general fund. To implement this act, the department may use this
appropriation as follows:
(a) $6,750 for tax administration ITsystem (GenTax) support; and
(b) $24,000 for use by the taxation services division for personal
services.
SECTION 13. Act subject to petition - effective date. Sections 8,
10, and 11 of this act take effect January 1, 2023, and the remainder of this
act takes effect at 12:01 a.m. on the day following the expiration of the
ninety-day period after final adjournment of the general assembly; except
that, if a referendum petition is filed pursuant to section 1 (3) of article V
of the state constitution against this act or an item, section, or part of this act
within such period, then the act, item, section, or part will not take effect
unless approved by the people at the general election to be held in
PAGE 7-HOUSE BILL 22-1025 November 2022 and, in such case, will take effect on the date of the official
declaration of the vote thereon by the governor; except that sections 8, 10,
and 11 of this act take effect January 1, 2023.
____________________________ ____________________________
Alec Garnett Steve Fenberg
SPEAKER OF THE HOUSE PRESIDENT OF
OF REPRESENTATIVES THE SENATE
____________________________ ____________________________
Robin Jones Cindi L. Markwell
CHIEF CLERK OF THE HOUSE SECRETARY OF
OF REPRESENTATIVES THE SENATE
APPROVED________________________________________
(Date and Time)
_________________________________________
Jared S. Polis
GOVERNOR OF THE STATE OF COLORADO
PAGE 8-HOUSE BILL 22-1025