HOUSE BILL 23-1277
BY REPRESENTATIVE(S) Marshall and Taggart, Bird, Boesenecker,
Frizell, Jodeh, Lindsay, Lindstedt, Snyder, Weinberg, Wilson;
also SENATOR(S) Kolker and Smallwood, Bridges, Buckner, Exum,
Gardner, Kirkmeyer, Lundeen, Mullica, Pelton B., Pelton R., Priola,
Rodriguez, Will.
C
ONCERNING THE FILING OF INCOME TAX RETURNS BY BUSINESS ENTITIES .
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. In Colorado Revised Statutes, 39-22-601, amend
(6)(a); and add (2.5)(j), (2.7), (5)(j), (5.5), and (6)(h) as follows:
39-22-601. Returns - repeal. (2.5) (j) (I) T
HIS SUBSECTION (2.5)
APPLIES TO TAX YEARS BEGINNING BEFORE JANUARY 1, 2024.
(II) T
HIS SUBSECTION (2.5) IS REPEALED, EFFECTIVE DECEMBER 31,
2028.
(2.7) (a) E
VERY S CORPORATION THAT ENGAGES IN ACTIVITIES IN
THE STATE THAT WOULD SUBJECT A
C CORPORATION TO THE REQUIREMENT
TO MAKE A RETURN UNDER THIS SECTION SHALL MAKE A RETURN THAT MUST
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. CONTAIN A WRITTEN DECLARATION THAT IT IS MADE UNDER THE PENALTIES
OF PERJURY IN THE SECOND DEGREE
. THE RETURN MUST SET FORTH, IN SUCH
DETAIL AS THE EXECUTIVE DIRECTOR SHALL PRESCRIBE
, FEDERAL TAXABLE
INCOME AND THE MODIFICATIONS AND CREDITS REQUIRED OR ALLOWED
UNDER THIS ARTICLE
22 AND ANY OTHER INFORMATION NECESSARY TO
CARRY OUT THE PURPOSES OF THIS ARTICLE
22. THE RETURN MUST BE
SIGNED BY AN OFFICER OF THE
S CORPORATION DULY AUTHORIZED TO ACT ,
WHICH AUTHORIZATION IS CONCLUSIVELY PRESUMED BY THE SIGNATURE .
(b) O
N OR BEFORE THE DAY ON WHICH THE RETURN IS FILED
PURSUANT TO SUBSECTION
(2.7)(a) OF THIS SECTION, BUT NO LATER THAN
THE DUE DATE FOR THE RETURN
, INCLUDING ANY EXTENSIONS, IN ADDITION
TO OTHER INFORMATION THAT THE EXECUTIVE DIRECTOR MAY PRESCRIBE
,
THE S CORPORATION SHALL REPORT TO THE EXECUTIVE DIRECTOR :
(I) T
HE NAME, ADDRESS, AND SOCIAL SECURITY NUMBER OR FEDERAL
IDENTIFICATION NUMBER OF EACH SHAREHOLDER OF THE
S CORPORATION;
(II) E
ACH SHAREHOLDER 'S PRO RATA SHARE OF THE S
CORPORATION'S INCOME, GAIN, LOSS, OR DEDUCTION;
(III) T
HE INCOME ATTRIBUTABLE TO THE STATE , WITH RESPECT TO
EACH NONRESIDENT SHAREHOLDER OF THE
S CORPORATION, AS DETERMINED
UNDER SUBPART
2 OF PART 3 OF THIS ARTICLE 22;
(IV) T
HE MODIFICATIONS REQUIRED BY SECTION 39-22-323 WITH
RESPECT TO EACH SHAREHOLDER
;
(V) E
ACH SHAREHOLDER 'S SHARE OF ANY CREDITS ALLOWED
PURSUANT TO THIS ARTICLE
22 TO THE EXTENT THAT THE CREDIT IS NOT
APPLIED TO THE COMPOSITE PAYMENT BY THE
S CORPORATION PURSUANT TO
SUBSECTION
(2.7)(d)(III)(B) OF THIS SECTION; AND
(VI) EACH SHAREHOLDER'S SHARE, IF ANY, OF ANY COMPOSITE
PAYMENT MADE PURSUANT TO SUBSECTION
(2.7)(d)(III).
(c) O
N OR BEFORE THE DAY ON WHICH THE RETURN IS FILED
PURSUANT TO SUBSECTION
(2.7)(a) OF THIS SECTION, BUT NO LATER THAN
THE DUE DATE FOR THE RETURN
, INCLUDING ANY EXTENSIONS , THE S
CORPORATION SHALL FURNISH TO EACH PERSON WHO WAS A SHAREHOLDER
PAGE 2-HOUSE BILL 23-1277 OF THE S CORPORATION DURING THE YEAR A COPY OF THE INFORMATION
REPORTED TO THE EXECUTIVE DIRECTOR PURSUANT TO SUBSECTION
(2.7)(b)
OF THIS SECTION WITH RESPECT TO THE SHAREHOLDER .
(d) (I) E
XCEPT AS OTHERWISE PROVIDED IN THIS SUBSECTION
(2.7)(d), EVERY S CORPORATION REQUIRED TO FILE A RETURN UNDER
SUBSECTION
(2.7)(a) OF THIS SECTION SHALL ALSO FILE A COMPOSITE
RETURN AND MAKE A COMPOSITE PAYMENT OF TAX ON BEHALF OF ALL OF ITS
NONRESIDENT SHAREHOLDERS
.
(II) T
HE COMPOSITE RETURN MUST NOT INCLUDE :
(A) A
NY RESIDENT SHAREHOLDER, INCLUDING A SHAREHOLDER WHO
IS A RESIDENT OF
COLORADO FOR ONLY PART OF THE TAXABLE YEAR ;
(B) A
NY NONRESIDENT SHAREHOLDER EXEMPT FROM TAX UNDER
SECTION
39-22-112 (1); OR
(C) ANY NONRESIDENT SHAREHOLDER WHO TIMELY FILES AN
AGREEMENT PURSUANT TO SUBSECTION
(2.7)(e) OF THIS SECTION.
(III) (A) T
HE AMOUNT OF THE COMPOSITE PAYMENT IS THE
AGGREGATE INCOME ATTRIBUTABLE TO THE STATE MULTIPLIED BY THE
HIGHEST MARGINAL TAX RATE IN EFFECT UNDER SECTION
39-22-104. THE
AGGREGATE INCOME ATTRIBUTABLE TO THE STATE IS THE SUM OF THE
INCOME ATTRIBUTABLE TO THE STATE THAT EACH NONRESIDENT
SHAREHOLDER INCLUDED IN THE COMPOSITE RETURN MUST TAKE INTO
ACCOUNT UNDER SECTION
39-22-322, AS MODIFIED PURSUANT TO SECTIONS
39-22-323 AND 39-22-325. IF THE INCOME CALCULATED FOR ANY
NONRESIDENT SHAREHOLDER IS A NEGATIVE AMOUNT
, THAT NONRESIDENT
SHAREHOLDER
'S INCOME IS EXCLUDED FROM THE CALCULATION OF
AGGREGATE INCOME ATTRIBUTABLE TO THE STATE
.
(B) T
HE S CORPORATION MAY CLAIM A NONRESIDENT
SHAREHOLDER
'S PRO RATA SHARE OF ANY CREDIT ALLOWED WITH RESPECT
TO THE ACTIVITY OF THE
S CORPORATION FOR THE TAXABLE YEAR ONLY IF
THE NONRESIDENT SHAREHOLDER IS INCLUDED IN THE COMPOSITE RETURN
AND ONLY TO THE EXTENT THAT THE NONRESIDENT SHAREHOLDER COULD
HAVE
, UNDER ANY APPLICABLE RESTRICTIONS , CLAIMED THE CREDIT
THEMSELF ON A RETURN THAT THE NONRESIDENT FILED
. THE TOTAL OF THE
PAGE 3-HOUSE BILL 23-1277 CREDITS CLAIMED UNDER THIS SUBSECTION (2.7)(d)(III)(B) FOR EACH
NONRESIDENT SHAREHOLDER MUST NOT EXCEED THE AMOUNT OF THE
COMPOSITE PAYMENT CALCULATED UNDER SUBSECTION
(2.7)(d)(III)(A) OF
THIS SECTION WITH RESPECT TO THE NONRESIDENT SHAREHOLDER
. TO THE
EXTENT THAT THE CREDIT EXCEEDS THE AMOUNT OF THE COMPOSITE
PAYMENT
, THE AMOUNT NOT APPLIED TO THE COMPOSITE PAYMENT IS
PASSED THROUGH TO AND MAY ONLY BE CLAIMED BY THE NONRESIDENT
SHAREHOLDER PURSUANT TO SUBSECTION
(2.7)(d)(VI)(B) OF THIS SECTION.
(IV)
EVERY S CORPORATION REQUIRED TO MAKE A COMPOSITE
PAYMENT UNDER THIS SUBSECTION
(2.7)(d) IS SUBJECT TO THE
REQUIREMENTS OF SECTION
39-22-606. THE COMPOSITE PAYMENT
CALCULATED PURSUANT TO SUBSECTION
(2.7)(d)(III) OF THIS SECTION IS
REGARDED AS THE
"TAX" OR "TAX LIABILITY" FOR PURPOSES OF SECTION
39-22-606, AND THE S CORPORATION IS REGARDED AS THE "TAXPAYER" OR
"CORPORATION". ANY REFUND ALLOWED PURSUANT TO SECTION 39-21-108
FOR ANY OVERPAYMENT OF ESTIMATED TAX MADE PURSUANT TO THIS
SUBSECTION
(2.7)(d)(IV) MUST BE MADE TO THE S CORPORATION THAT
FILED THE COMPOSITE RETURN
.
(V) A
N S CORPORATION IS ENTITLED TO RECOVER FROM EACH
NONRESIDENT SHAREHOLDER THAT NONRESIDENT SHAREHOLDER
'S SHARE OF
THE COMPOSITE PAYMENT MADE PURSUANT TO THIS SUBSECTION
(2.7)(d),
INCLUDING ANY PENALTY OR INTEREST PAID PURSUANT TO SECTION
39-22-621.
(VI) (A) A
COMPOSITE RETURN FILED PURSUANT TO THIS
SUBSECTION
(2.7)(d) SATISFIES THE FILING REQUIREMENT IMPOSED BY THIS
SECTION FOR EACH NONRESIDENT SHAREHOLDER INCLUDED THEREIN
, UNLESS
THAT NONRESIDENT SHAREHOLDER HAS ANY INCOME FROM
COLORADO
SOURCES THAT IS NOT INCLUDED IN A COMPOSITE RETURN OR THAT
NONRESIDENT SHAREHOLDER HAS INCURRED ANY TAX LIABILITY UNDER THIS
ARTICLE
22 THAT IS NOT INCLUDED IN A COMPOSITE RETURN .
(B) A
NONRESIDENT SHAREHOLDER WHO IS INCLUDED IN A
COMPOSITE RETURN
, AND WHOSE FILING REQUIREMENT UNDER THIS SECTION
IS SATISFIED THEREBY
, MAY FILE A RETURN IN ACCORDANCE WITH THIS
SECTION
. A NONRESIDENT SHAREHOLDER WHO FILES A RETURN MAY CLAIM
A CREDIT FOR ITS SHARE OF THE COMPOSITE PAYMENT MADE BY THE
S
CORPORATION ON BEHALF OF THE NONRESIDENT SHAREHOLDER PURSUANT
PAGE 4-HOUSE BILL 23-1277 TO SUBSECTION (2.7)(d)(III)(A) OF THIS SECTION. A NONRESIDENT
SHAREHOLDER WHO FILES A RETURN MAY CLAIM ITS PRO RATA SHARE OF
ANY CREDIT ALLOWED BY THIS ARTICLE
22 TO THE EXTENT THAT THE CREDIT
WAS NOT APPLIED TO THE COMPOSITE PAYMENT MADE BY THE
S
CORPORATION ON BEHALF OF THE NONRESIDENT SHAREHOLDER .
(C) T
HE EXCLUSION OF A SHAREHOLDER FROM THE COMPOSITE
RETURN PURSUANT TO SUBSECTION
(2.7)(d)(II) OF THIS SECTION DOES NOT
EXEMPT THE SHAREHOLDER FROM THE OBLIGATION TO FILE A RETURN OR
PAY THE TAX IMPOSED UNDER THIS ARTICLE
22.
(VII) T
HIS SUBSECTION (2.7)(d) DOES NOT APPLY TO:
(A) A
N S CORPORATION THAT MAKES THE ELECTION ALLOWED
UNDER SUBPART
3 OF PART 3 OF THIS ARTICLE 22; OR
(B) AN S CORPORATION CONSISTING ONLY OF SHAREHOLDERS
DESCRIBED IN SUBSECTION
(2.7)(d)(II) OF THIS SECTION.
(e) (I) T
HE AGREEMENT REFERRED TO IN SUBSECTION (2.7)(d)(II)(C)
OF THIS SECTION IS AN AGREEMENT OF A NONRESIDENT SHAREHOLDER OF
THE
S CORPORATION FOR PURPOSES OF SUBSECTION (2.7)(d)(II)(C) OF THIS
SECTION IF THE AGREEMENT
:
(A) R
EQUIRES THE NONRESIDENT SHAREHOLDER TO FILE A RETURN
IN ACCORDANCE WITH THIS SECTION AND TO MAKE TIMELY PAYMENT OF ALL
TAXES IMPOSED ON THE SHAREHOLDER BY THE STATE WITH RESPECT TO THE
INCOME OF THE NONRESIDENT SHAREHOLDER
; AND
(B) PROVIDES THAT THE S CORPORATION IS SUBJECT TO PERSONAL
JURISDICTION IN THE STATE FOR PURPOSES OF THE COLLECTION OF INCOME
TAXES
, TOGETHER WITH RELATED INTEREST AND PENALTIES , IMPOSED ON
THE SHAREHOLDER BY THE STATE WITH RESPECT TO THE INCOME OF THE
S
CORPORATION.
(II) I
N ORDER TO EXCLUDE A NONRESIDENT SHAREHOLDER FROM A
COMPOSITE RETURN PURSUANT TO SUBSECTION
(2.7)(d)(II)(C) OF THIS
SECTION
, THE S CORPORATION MUST OBTAIN THE AGREEMENT DESCRIBED IN
THIS SUBSECTION
(2.7)(e) FROM THE NONRESIDENT SHAREHOLDER AND FILE
IT WITH THE RETURN REQUIRED BY SUBSECTION
(2.7)(a) OF THIS SECTION.
PAGE 5-HOUSE BILL 23-1277 AN S CORPORATION THAT TIMELY FILES AN AGREEMENT FOR A TAXABLE
PERIOD IS CONSIDERED TO HAVE TIMELY FILED SUCH AN AGREEMENT FOR
EACH SUBSEQUENT TAXABLE PERIOD
. AN S CORPORATION THAT DOES NOT
TIMELY FILE SUCH AN AGREEMENT FOR A TAXABLE PERIOD IS NOT
PRECLUDED FROM TIMELY FILING SUCH AN AGREEMENT FOR SUBSEQUENT
TAXABLE PERIODS
.
(f) T
HIS SUBSECTION (2.7) APPLIES TO INCOME TAX YEARS
BEGINNING ON AND AFTER
JANUARY 1, 2024.
(5) (j) (I) T
HIS SUBSECTION (5) APPLIES TO INCOME TAX YEARS
BEGINNING BEFORE
JANUARY 1, 2024.
(II) T
HIS SUBSECTION (5) IS REPEALED, EFFECTIVE DECEMBER 31,
2028.
(5.5) (a) E
VERY PARTNERSHIP THAT ENGAGES IN ACTIVITIES IN THE
STATE THAT WOULD SUBJECT A
C CORPORATION TO THE REQUIREMENT TO
MAKE A RETURN UNDER THIS SECTION SHALL MAKE A RETURN THAT
CONTAINS A WRITTEN DECLARATION T HAT IT IS MADE UNDER THE PENALTY
OF PERJURY IN THE SECOND DEGREE
. THE RETURN MUST SET FORTH, IN SUCH
DETAIL AS THE EXECUTIVE DIRECTOR PRESCRIBES
, FEDERAL ORDINARY
INCOME AND THE MODIFICATIONS AND CREDITS REQUIRED OR ALLOWED
UNDER THIS ARTICLE
22 AND ANY OTHER INFORMATION NECESSARY TO
CARRY OUT THE PURPOSES OF THIS ARTICLE
22. THE RETURN MUST BE
SIGNED BY A PARTNER DULY AUTHORIZED TO ACT
, AND THE AUTHORIZATION
IS TO BE CONCLUSIVELY PRESUMED BY THE SIGNATURE
.
(b) O
N OR BEFORE THE DAY ON WHICH A RETURN IS FILED PURSUANT
TO SUBSECTION
(5.5)(a) OF THIS SECTION, BUT NO LATER THAN THE DUE
DATE FOR THE RETURN
, INCLUDING ANY EXTENSIONS, IN ADDITION TO OTHER
INFORMATION THAT THE EXECUTIVE DIRECTOR MAY PRESCRIBE
, THE
PARTNERSHIP SHALL REPORT TO THE EXECUTIVE DIRECTOR
:
(I) T
HE NAME, ADDRESS, AND SOCIAL SECURITY NUMBER OR FEDERAL
IDENTIFICATION NUMBER OF EACH PARTNER OF THE PARTNERSHIP
;
(II) E
ACH PARTNER'S DISTRIBUTIVE SHARE OF PARTNERSHIP INCOME,
GAIN, LOSS, OR DEDUCTION;
PAGE 6-HOUSE BILL 23-1277 (III) THE INCOME DERIVED FROM SOURCES WITHIN COLORADO AS
DETERMINED UNDER SECTION
39-22-203 WITH RESPECT TO EACH
NONRESIDENT PARTNER
;
(IV) T
HE MODIFICATIONS THAT MAY BE REQUIRED BY SECTION
39-22-202 OR 39-22-203, AS APPLICABLE, WITH RESPECT TO EACH PARTNER;
(V) E
ACH PARTNER'S SHARE OF ANY CREDITS ALLOWED PURSUANT
TO THIS ARTICLE
22 TO THE EXTENT THAT THE CREDIT WAS NOT APPLIED TO
THE COMPOSITE PAYMENT BY THE PARTNERSHIP PURSUANT TO SUBSECTION
(5.5)(d)(III)(B) OF THIS SECTION; AND
(VI) EACH PARTNER'S SHARE, IF ANY, OF ANY COMPOSITE PAYMENT
MADE BY THE PARTNERSHIP PURSUANT TO SUBSECTION
(5.5)(d)(III) OF THIS
SECTION
.
(c) O
N OR BEFORE THE DAY ON WHICH THE RETURN IS FILED
PURSUANT TO SUBSECTION
(5.5)(a) OF THIS SECTION, BUT NO LATER THAN
THE DUE DATE FOR THE RETURN
, INCLUDING ANY EXTENSIONS , THE
PARTNERSHIP SHALL FURNISH TO EACH PERSON WHO WAS A PARTNER DURING
THE YEAR A COPY OF THE INFORMATION REPORTED TO THE EXECUTIVE
DIRECTOR PURSUANT TO SUBSECTION
(5.5)(b) OF THIS SECTION WITH
RESPECT TO THE PARTNER
.
(d) (I) E
XCEPT AS OTHERWISE PROVIDED IN THIS SUBSECTION
(5.5)(d), EVERY PARTNERSHIP REQUIRED TO FILE A RETURN UNDER
SUBSECTION
(5.5)(a) OF THIS SECTION SHALL ALSO FILE A COMPOSITE
RETURN AND MAKE A COMPOSITE PAYMENT OF TAX ON BEHALF OF ALL OF ITS
NONRESIDENT PARTNERS
.
(II) T
HE COMPOSITE RETURN MUST NOT INCLUDE :
(A) A
NY RESIDENT PARTNER, INCLUDING A PARTNER WHO IS A
RESIDENT OF
COLORADO FOR ONLY PART OF THE TAXABLE YEAR ;
(B) A
NY NONRESIDENT PARTNER THAT IS A CORPORATION OR A
PARTNERSHIP
;
(C)
ANY NONRESIDENT PARTNER EXEMPT FROM TAX UNDER SECTION
39-22-112 (1); AND
PAGE 7-HOUSE BILL 23-1277 (D) ANY NONRESIDENT PARTNER WHO TIMELY FILES AN AGREEMENT
PURSUANT TO SUBSECTION
(5.5)(e) OF THIS SECTION.
(III) (A) T
HE AMOUNT OF THE COMPOSITE PAYMENT IS THE
AGGREGATE INCOME DERIVED FROM SOURCES IN THE STATE MULTIPLIED BY
THE HIGHEST MARGINAL TAX RATE IN EFFECT UNDER SECTION
39-22-104.
T
HE AGGREGATE INCOME ATTRIBUTABLE TO THE STATE IS THE SUM OF THE
DISTRIBUTIVE SHARE OF PARTNERSHIP INCOME
, GAIN, LOSS, OR DEDUCTION
DERIVED FROM SOURCES IN
COLORADO FOR EACH NONRESIDENT PARTNER
INCLUDED IN THE COMPOSITE RETURN
, COMPUTED PURSUANT TO SECTION
39-22-203, INCLUDING THE MODIFICATIONS PROVIDED BY THAT SECTION . IF
THE INCOME COMPUTED FOR ANY NONRESIDENT PARTNER IS A NEGATIVE
AMOUNT
, THAT NONRESIDENT PARTNER 'S INCOME IS EXCLUDED FROM THE
CALCULATION OF AGGREGATE INCOME DERIVED FROM SOURCES IN THE
STATE
.
(B) T
HE PARTNERSHIP MAY CLAIM A NONRESIDENT PARTNER 'S
DISTRIBUTIVE SHARE OF ANY CREDIT ALLOWED WITH RESPECT TO THE
ACTIVITY OF THE PARTNERSHIP FOR THE TAXABLE YEAR ONLY IF THE
NONRESIDENT PARTNER IS INCLUDED IN THE COMPOSITE RETURN AND ONLY
TO THE EXTENT THAT THE NONRESIDENT PARTNER COULD HAVE
, UNDER ANY
APPLICABLE RESTRICTIONS
, CLAIMED THE CREDIT THEMSELF ON A RETURN
THAT THE NONRESIDENT FILED
. THE TOTAL OF THE CREDITS APPLIED UNDER
THIS SUBSECTION
(5.5)(d)(III)(B) FOR EACH NONRESIDENT PARTNER MUST
NOT EXCEED THE AMOUNT OF THE COMPOSITE PAYMENT CALCULATED
UNDER SUBSECTION
(5.5)(d)(III)(A) OF THIS SECTION WITH RESPECT TO THE
NONRESIDENT PARTNER
. TO THE EXTENT THAT THE CREDIT EXCEEDS THE
AMOUNT OF THE COMPOSITE PAYMENT
, THE AMOUNT NOT APPLIED TO THE
COMPOSITE PAYMENT IS PASSED THROUGH TO AND MAY ONLY BE CLAIMED
BY THE NONRESIDENT PARTNER PURSUANT TO SUBSECTION
(5.5)(d)(VI)(B)
OF THIS SECTION.
(IV) E
VERY PARTNERSHIP REQUIRED TO MAKE A COMPOSITE
PAYMENT UNDER THIS SUBSECTION
(5.5)(d) IS SUBJECT TO THE
REQUIREMENTS OF SECTION
39-22-606. THE COMPOSITE PAYMENT
CALCULATED PURSUANT TO SUBSECTION
(5.5)(d)(III) OF THIS SECTION IS
REGARDED AS THE
"TAX" OR "TAX LIABILITY" FOR PURPOSES OF SECTION
39-22-606, AND THE PARTNERSHIP IS REGARDED AS THE "TAXPAYER" OR
"CORPORATION". ANY REFUND ALLOWED PURSUANT TO SECTION 39-21-108
FOR ANY OVERPAYMENT OF ESTIMATED TAX MADE PURSUANT TO THIS
PAGE 8-HOUSE BILL 23-1277 SUBSECTION (5.5)(d)(IV) MUST BE MADE TO THE PARTNERSHIP THAT FILED
THE COMPOSITE RETURN
.
(V) A
PARTNERSHIP IS ENTITLED TO RECOVER FROM EACH
NONRESIDENT PARTNER THAT NONRESIDENT PARTNER
'S SHARE OF THE
COMPOSITE PAYMENT MADE PURSUANT TO THIS SUBSECTION
(5.5)(d),
INCLUDING ANY PENALTY OR INTEREST PAID PURSUANT TO SECTION
39-22-621.
(VI) (A) A
COMPOSITE RETURN FILED PURSUANT TO THIS
SUBSECTION
(5.5)(d) SATISFIES THE FILING REQUIREMENT UNDER THIS
SECTION FOR EACH NONRESIDENT PARTNER INCLUDED IN THE RETURN
UNLESS THAT NONRESIDENT PARTNER HAS ANY INCOME FROM
COLORADO
SOURCES THAT IS NOT INCLUDED IN A COMPOSITE RETURN OR THAT
NONRESIDENT PARTNER HAS INCURRED ANY TAX LIABILITY UNDER THIS
ARTICLE
22 THAT IS NOT INCLUDED IN A COMPOSITE RETURN .
(B) A
NONRESIDENT PARTNER INCLUDED IN A COMPOSITE RETURN ,
AND WHOSE FILING REQUIREMENT UNDER THIS SECTION IS SATISFIED BY
FILING THE COMPOSITE RETURN
, MAY FILE A RETURN IN ACCORDANCE WITH
THIS SECTION
. A NONRESIDENT PARTNER WHO FILES A RETURN MAY CLAIM
A CREDIT FOR ITS SHARE OF THE COMPOSITE PAYMENT MADE BY THE
PARTNERSHIP ON BEHALF OF THE NONRESIDENT PARTNER PURSUANT TO
SUBSECTION
(5.5)(d)(III)(A) OF THIS SECTION. A NONRESIDENT PARTNER
WHO FILES A RETURN MAY CLAIM ITS DISTRIBUTIVE SHARE OF ANY CREDIT
AS ALLOWED BY THIS ARTICLE
22 TO THE EXTENT THE CREDIT WAS NOT
APPLIED TO THE COMPOSITE PAYMENT MADE BY THE PARTNERSHIP ON
BEHALF OF THE NONRESIDENT PARTNER
.
(C) T
HE EXCLUSION OF A PARTNER FROM THE COMPOSITE RETURN
PURSUANT TO SUBSECTION
(5.5)(d)(II) OF THIS SECTION DOES NOT EXEMPT
THE PARTNER FROM THE OBLIGATION TO FILE A RETURN OR PAY THE TAX
IMPOSED UNDER THIS ARTICLE
22.
(VII) T
HIS SUBSECTION (5.5)(d) DOES NOT APPLY TO:
(A) A
PARTNERSHIP THAT MAKES THE ELECTION ALLOWED UNDER
SUBPART
3 OF PART 3 OF THIS ARTICLE 22;
(B) A
PUBLICLY TRADED PARTNERSHIP, AS DEFINED IN SECTION 7704
PAGE 9-HOUSE BILL 23-1277 (b) OF THE INTERNAL REVENUE CODE, THAT MEETS ANY OF THE EXCEPTIONS
UNDER SECTION
7704 (c) OF THE INTERNAL REVENUE CODE AND IS NOT
TREATED AS A CORPORATION UNDER SECTION
7704 (a) OF THE INTERNAL
REVENUE CODE
; AND
(C) A PARTNERSHIP CONSISTING ONLY OF PARTNERS DESCRIBED IN
SUBSECTION
(5.5)(d)(II) OF THIS SECTION.
(e) (I) T
HE AGREEMENT REFERRED TO IN SUBSECTION (5.5)(d)(II)(C)
OF THIS SECTION IS AN AGREEMENT OF A NONRESIDENT PARTNER OF THE
PARTNERSHIP FOR PURPOSES OF SUBSECTION
(5.5)(d)(II)(C) OF THIS SECTION
IF THE AGREEMENT
:
(A) R
EQUIRES THE NONRESIDENT PARTNER TO FILE A RETURN IN
ACCORDANCE WITH THIS SECTION AND MAKE TIMELY PAYMENT OF ALL
TAXES IMPOSED ON THE PARTNER BY THE STATE WITH RESPECT TO THE
INCOME OF THE PARTNERSHIP
; AND
(B) PROVIDES THAT THE NONRESIDENT PARTNER IS SUBJECT TO
PERSONAL JURISDICTION IN THE STATE FOR PURPOSES OF THE COLLECTION OF
INCOME TAXES
, TOGETHER WITH RELATED INTEREST AND PENALTIES ,
IMPOSED ON THE PARTNER BY THE STATE WITH RESPECT TO THE INCOME OF
THE PARTNERSHIP
.
(II) I
N ORDER TO EXCLUDE A NONRESIDENT PARTNER FROM A
COMPOSITE RETURN PURSUANT TO SUBSECTION
(5.5)(d)(II)(D) OF THIS
SECTION
, THE PARTNERSHIP MUST OBTAIN THE AGREEMENT DESCRIBED IN
THIS SUBSECTION
(5.5)(e) FROM THE NONRESIDENT PARTNER AND FILE IT
WITH THE RETURN REQUIRED BY SUBSECTION
(5.5)(a) OF THIS SECTION. A
PARTNERSHIP THAT TIMELY FILES AN AGREEMENT FOR A TAXABLE PERIOD IS
CONSIDERED TO HAVE TIMELY FILED SUCH AN AGREEMENT FOR EACH
SUBSEQUENT TAXABLE PERIOD
. A PARTNERSHIP THAT DOES NOT TIMELY FILE
SUCH AN AGREEMENT FOR A TAXABLE PERIOD IS NOT PRECLUDED FROM
TIMELY FILING SUCH AN AGREEMENT FOR SUBSEQUENT TAXABLE PERIODS
.
(f) T
HIS SUBSECTION (5.5) APPLIES TO TAX YEARS BEGINNING ON AND
AFTER
JANUARY 1, 2024.
(6) (a) Any final determination of federal taxable income made
PRIOR TO JANUARY 1, 2024, pursuant to the provisions of federal law under
PAGE 10-HOUSE BILL 23-1277 which federal taxable income is found to differ from the taxable income
originally reported to the federal government shall MUST be reported by the
taxpayer to the executive director by making and filing a Colorado amended
return within thirty days of such final determination with a statement of the
reasons for the difference, in such detail as the executive director may
require. In addition thereto, any taxpayer filing an amended return with the
federal internal revenue service that reflects any change in income
reportable to the state of Colorado shall, within thirty days of such federal
filing, make and file a corresponding Colorado amended return.
(b) T
HIS SUBSECTION (6) IS REPEALED, EFFECTIVE DECEMBER 31,
2028.
SECTION 2. In Colorado Revised Statutes, add 39-22-601.5 as
follows:
39-22-601.5. Reporting federal adjustments - definitions. (1) A
S
USED IN THIS SECTION
, UNLESS THE CONTEXT OTHERWISE REQUIRES :
(a) "A
DMINISTRATIVE ADJUSTMENT REQUEST " MEANS AN
ADMINISTRATIVE ADJUSTMENT REQUEST FILED BY A PARTNERSHIP UNDER
SECTION
6227 OF THE INTERNAL REVENUE CODE.
(b) "A
UDITED PARTNERSHIP" MEANS A PARTNERSHIP SUBJECT TO A
PARTNERSHIP LEVEL AUDIT RESULTING IN A FEDERAL ADJUSTMENT
.
(c) "C
ORPORATE PARTNER" MEANS A PARTNER THAT IS SUBJECT TO
TAX UNDER SECTION
39-22-301.
(d) "D
IRECT PARTNER" MEANS A PARTNER THAT HOLDS AN INTEREST
DIRECTLY IN A PARTNERSHIP
.
(e) "E
XEMPT PARTNER" MEANS A PARTNER THAT IS EXEMPT FROM
TAXATION UNDER SECTION
39-22-112 (1), EXCEPT ON UNRELATED BUSINESS
TAXABLE INCOME UNDER SECTION
39-22-112 (2).
(f) "F
EDERAL ADJUSTMENT" MEANS A CHANGE TO AN ITEM OR
AMOUNT DETERMINED UNDER THE INTERNAL REVENUE CODE THAT IS USED
BY A TAXPAYER TO COMPUTE THE TAX DUE UNDER THIS ARTICLE
22
WHETHER THAT CHANGE RESULTS FROM ACTION BY THE INTERNAL REVENUE
PAGE 11-HOUSE BILL 23-1277 SERVICE, INCLUDING A PARTNERSHIP LEVEL AUDIT , OR THE FILING OF AN
AMENDED FEDERAL RETURN
, FEDERAL REFUND CLAIM, OR ADMINISTRATIVE
ADJUSTMENT REQUEST BY THE TAXPAYER
. A FEDERAL ADJUSTMENT IS
POSITIVE TO THE EXTENT THAT IT INCREASES FEDERAL TAXABLE INCOME AS
DETERMINED UNDER THIS ARTICLE
22 AND IS NEGATIVE TO THE EXTENT THAT
IT DECREASES FEDERAL TAXABLE INCOME AS DETERMINED UNDER THIS
ARTICLE
22.
(g) "F
EDERAL ADJUSTMENTS REPORT " INCLUDES METHODS OR FORMS
REQUIRED BY THE EXECUTIVE DIRECTOR FOR USE BY A TAXPAYER TO REPORT
FINAL FEDERAL ADJUSTMENTS
, INCLUDING AN AMENDED COLORADO TAX
RETURN
, AN INFORMATION RETURN, OR A UNIFORM MULTISTATE REPORT .
(h) "F
EDERAL PARTNERSHIP REPRESENTATIVE " MEANS THE PERSON
THE PARTNERSHIP DESIGNATES FOR THE TAXABLE YEAR AS THE
PARTNERSHIP
'S REPRESENTATIVE, OR THE PERSON THE INTERNAL REVENUE
SERVICE HAS APPOINTED TO ACT AS THE FEDERAL PARTNERSHIP
REPRESENTATIVE PURSUANT TO SECTION
6223 (a) OF THE INTERNAL
REVENUE CODE
.
(i) "F
INAL DETERMINATION DATE" MEANS:
(I) E
XCEPT AS OTHERWISE PROVIDED IN THIS SUBSECTION (1)(i), IF
THE FEDERAL ADJUSTMENT ARISES FROM AN INTERNAL REVENUE SERVICE
AUDIT OR OTHER ACTION BY THE INTERNAL REVENUE SERVICE
, THE FIRST
DAY ON WHICH NO FEDERAL ADJUSTMENTS ARISING FROM THE AUDIT OR
OTHER ACTION REMAIN TO BE FINALLY DETERMINED
, WHETHER BY INTERNAL
REVENUE SERVICE DECISION WITH RESPECT TO WHICH ALL RIGHTS OF APPEAL
HAVE BEEN WAIVED OR EXHAUSTED
, BY AGREEMENT, OR, IF APPEALED OR
CONTESTED
, BY A FINAL DECISION WITH RESPECT TO WHICH ALL RIGHTS OF
APPEAL HAVE BEEN WAIVED OR EXHAUSTED
. FOR AGREEMENTS REQUIRED
TO BE SIGNED BY THE INTERNAL REVENUE SERVICE AND THE TAXPAYER
, THE
FINAL DETERMINATION DATE IS THE DATE ON WHICH THE LAST PARTY SIGNED
THE AGREEMENT
.
(II) F
OR FEDERAL ADJUSTMENTS ARISING FROM AN INTERNAL
REVENUE SERVICE AUDIT OR OTHER ACTION BY THE INTERNAL REVENUE
SERVICE
, IF THE TAXPAYER FILED A COMBINED REPORT , A CONSOLIDATED
RETURN
, OR A COMBINED AND CONSOLIDATED RETURN , THE FIRST DAY ON
WHICH NO RELATED FEDERAL ADJUSTMENTS ARISING FROM THAT AUDIT
PAGE 12-HOUSE BILL 23-1277 REMAIN TO BE FINALLY DETERMINED, AS DESCRIBED IN SUBSECTION (1)(i)(I)
OF THIS SECTION, FOR THE ENTIRE GROUP.
(III) I
F THE FEDERAL ADJUSTMENT RESULTS FROM FILING AN
AMENDED FEDERAL RETURN
, A FEDERAL REFUND CLAIM , OR AN
ADMINISTRATIVE ADJUSTMENT REQUEST
, OR IF IT IS A FEDERAL ADJUSTMENT
REPORTED ON AN AMENDED FEDERAL RETURN OR OTHER SIMILAR REPORT
FILED PURSUANT TO SECTION
6225 (c) OF THE INTERNAL REVENUE CODE, THE
DAY ON WHICH THE AMENDED RETURN
, REFUND CLAIM, ADMINISTRATIVE
ADJUSTMENT REQUEST
, OR OTHER SIMILAR REPORT WAS FILED.
(j) "F
INAL FEDERAL ADJUSTMENT" MEANS A FEDERAL ADJUSTMENT
AFTER THE FINAL DETERMINATION DATE FOR THAT FEDERAL ADJUSTMENT
HAS PASSED
.
(k) "I
NDIRECT PARTNER" MEANS A PARTNER IN A PARTNERSHIP OR
PASS
-THROUGH ENTITY THAT ITSELF HOLDS AN INTEREST DIRECTLY , OR
THROUGH ANOTHER INDIRECT PARTNER
, IN A PARTNERSHIP OR
PASS
-THROUGH ENTITY.
(l) "N
ONRESIDENT PARTNER" MEANS A NONRESIDENT INDIVIDUAL ,
A NONRESIDENT ESTATE, OR A NONRESIDENT TRUST.
(m) "P
ARTNER" MEANS A PERSON THAT HOLDS AN INTEREST
DIRECTLY OR INDIRECTLY IN A PARTNERSHIP OR OTHER PASS
-THROUGH
ENTITY
.
(n) "P
ARTNERSHIP LEVEL AUDIT" MEANS AN EXAMINATION BY THE
INTERNAL REVENUE SERVICE AT THE PARTNERSHIP LEVEL PURSUANT TO
SUBCHAPTER
C OF CHAPTER 63 OF SUBTITLE F OF THE INTERNAL REVENUE
CODE THAT RESULTS IN FEDERAL ADJUSTMENTS
.
(o) "P
ASS-THROUGH ENTITY" MEANS AN ENTITY, OTHER THAN A
PARTNERSHIP
, THAT IS NOT SUBJECT TO TAX UNDER SECTION 39-22-301.
(p) "R
ESIDENT PARTNER" MEANS A PARTNER WHO IS A RESIDENT
INDIVIDUAL
, A RESIDENT ESTATE, OR A RESIDENT TRUST.
(q) "R
EVIEWED YEAR" MEANS THE TAXABLE YEAR OF A PARTNERSHIP
THAT IS SUBJECT TO A PARTNERSHIP LEVEL AUDIT FROM WHICH FEDERAL
PAGE 13-HOUSE BILL 23-1277 ADJUSTMENTS ARISE.
(r) "T
AXPAYER" MEANS:
(I) A
PERSON SUBJECT TO TAX UNDER THIS ARTICLE 22;
(II) A
PARTNERSHIP SUBJECT TO A PARTNERSHIP LEVEL AUDIT AND
A TIERED PARTNER OF THAT PARTNERSHIP
; OR
(III) A PARTNERSHIP THAT HAS MADE AN ADMINISTRATIVE
ADJUSTMENT REQUEST AND A TIERED PARTNER OF THAT PARTNERSHIP
.
(s) "T
IERED PARTNER" MEANS ANY PARTNER THAT IS A PARTNERSHIP
OR PASS
-THROUGH ENTITY.
(2) E
XCEPT IN THE CASE OF FINAL FEDERAL ADJUSTMENTS THAT ARE
REQUIRED TO BE REPORTED BY A PARTNERSHIP AND ITS PARTNERS USING THE
PROCEDURES IN SUBSECTION
(3) OF THIS SECTION, AND FINAL FEDERAL
ADJUSTMENTS REQUIRED TO BE REPORTED FOR FEDERAL PURPOSES BY
TAKING THOSE ADJUSTMENTS INTO ACCOUNT IN THE PARTNERSHIP RETURN
FOR THE YEAR OF ADJUSTMENT
, A TAXPAYER SHALL REPORT AND PAY ANY
TAX DUE UNDER THIS ARTICLE
22 WITH RESPECT TO FINAL FEDERAL
ADJUSTMENTS ARISING FROM AN AUDIT OR OTHER ACTION BY THE INTERNAL
REVENUE SERVICE OR REPORTED BY THE TAXPAYER ON A TIMELY FILED
AMENDED FEDERAL INCOME TAX RETURN
, INCLUDING A RETURN OR OTHER
SIMILAR REPORT FILED PURSUANT TO SECTION
6225 (c)(2) OF THE INTERNAL
REVENUE CODE
, OR FEDERAL CLAIM FOR REFUND BY FILING A FEDERAL
ADJUSTMENTS REPORT WITH THE EXECUTIVE DIRECTOR FOR THE REVIEWED
YEAR AND
, IF APPLICABLE, PAYING THE ADDITIONAL TAX OWED UNDER THIS
ARTICLE
22 BY THE TAXPAYER NO LATER THAN ONE HUNDRED EIGHTY DAYS
AFTER THE FINAL DETERMINATION DATE
.
(3) (a) E
XCEPT FOR ADJUSTMENTS REQUIRED TO BE REPORTED FOR
FEDERAL PURPOSES BY TAKING THOSE ADJUSTMENTS INTO ACCOUNT IN THE
PARTNERSHIP RETURN FOR THE YEAR OF ADJUSTMENT AND THE
DISTRIBUTIVE SHARE OF ADJUSTMENTS THAT HAVE BEEN REPORTED AS
REQUIRED UNDER SUBSECTION
(2) OF THIS SECTION, PARTNERSHIPS AND
PARTNERS SHALL REPORT FINAL FEDERAL ADJUSTMENTS ARISING FROM A
PARTNERSHIP LEVEL AUDIT OR AN ADMINISTRATIVE ADJUSTMENT REQUEST
AND MAKE PAYMENTS AS REQUIRED UNDER THIS SUBSECTION
(3).
PAGE 14-HOUSE BILL 23-1277 (b) (I) WITH RESPECT TO AN ACTION REQUIRED OR PERMITTED TO BE
TAKEN BY A PARTNERSHIP UNDER THIS SUBSECTION
(3) AND A PROCEEDING
UNDER SECTION
39-21-103 OR 39-21-105 WITH RESPECT TO THAT ACTION,
THE STATE PARTNERSHIP REPRESENTATIVE FOR THE REVIEWED YEAR HAS
THE SOLE AUTHORITY TO ACT ON BEHALF OF THE PARTNERSHIP
, AND THE
PARTNERSHIP
'S DIRECT PARTNERS AND INDIRECT PARTNERS ARE BOUND BY
THOSE ACTIONS
.
(II) T
HE STATE PARTNERSHIP REPRESENTATIVE FOR THE REVIEWED
YEAR IS THE PARTNERSHIP
'S FEDERAL PARTNERSHIP REPRESENTATIVE
UNLESS THE PARTNERSHIP DESIGNATES IN WRITING ANOTHER PERSON AS ITS
STATE PARTNERSHIP REPRESENTATIVE
.
(III) T
HE EXECUTIVE DIRECTOR MAY ESTABLISH REASONABLE
QUALIFICATIONS AND PROCEDURES FOR DESIGNATING A PERSON OTHER THAN
THE FEDERAL PARTNERSHIP REPRESENTATIVE TO BE THE STATE PARTNERSHIP
REPRESENTATIVE
.
(c) F
INAL FEDERAL ADJUSTMENTS SUBJECT TO THE REQUIREMENTS
OF THIS SUBSECTION
(3), EXCEPT FOR THOSE SUBJECT TO A PROPERLY MADE
ELECTION UNDER SUBSECTION
(3)(d) OF THIS SECTION, MUST BE REPORTED
AS PROVIDED IN THIS SUBSECTION
(3)(c).
(I) N
O LATER THAN NINETY DAYS AFTER THE FINAL DETERMINATION
DATE
, THE PARTNERSHIP SHALL:
(A) F
ILE A COMPLETED FEDERAL ADJUSTMENTS REPORT WITH THE
EXECUTIVE DIRECTOR INCLUDING ANY INFORMATION THE EXECUTIVE
DIRECTOR MAY PRESCRIBE
;
(B) N
OTIFY EACH OF ITS DIRECT PARTNERS OF THEIR DISTRIBUTIVE
SHARE OF THE FINAL FEDERAL ADJUSTMENTS INCLUDING ANY INFORMATION
THE EXECUTIVE DIRECTOR MAY PRESCRIBE
;
(C) F
ILE AN AMENDED COMPOSITE RETURN FOR DIRECT PARTNERS AS
REQUIRED UNDER SECTION
39-22-601 (5)(d) OR (5.5)(d), AS APPLICABLE, OR
AN AMENDED RETURN UNDER SUBPART
3 OF PART 3 OF THIS ARTICLE 22, AND
PAY THE ADDITIONAL AMOUNT THAT WOULD HAVE BEEN DUE HAD THE FINAL
FEDERAL ADJUSTMENTS BEEN REPORTED PROPERLY AS REQUIRED
; AND
PAGE 15-HOUSE BILL 23-1277 (D) FOR ANY DIRECT PARTNER FOR WHICH PAYMENT WAS MADE
UNDER SECTION
39-22-601 (5)(h), PAY THE ADDITIONAL AMOUNT THAT
WOULD HAVE BEEN DUE HAD THE FINAL FEDERAL ADJUSTMENTS BEEN
REPORTED PROPERLY AS REQUIRED
.
(II) E
XCEPT AS PROVIDED UNDER SUBSECTION (4) OF THIS SECTION,
NO LATER THAN ONE HUNDRED EIGHTY DAYS AFTER THE FINAL
DETERMINATION DATE
, EACH DIRECT PARTNER THAT IS NOT INCLUDED IN AN
AMENDED COMPOSITE RETURN UNDER SUBSECTION
(3)(c)(I)(C) OF THIS
SECTION AND THAT IS SUBJECT TO TAX UNDER SECTION
39-22-104 SHALL:
(A) F
ILE A FEDERAL ADJUSTMENTS REPORT REPORTING THEIR
DISTRIBUTIVE SHARE OF THE ADJUSTMENTS REPORTED TO THEM UNDER
SUBSECTION
(3)(c)(I)(B) OF THIS SECTION; AND
(B) PAY ANY ADDITIONAL AMOUNT OF TAX DUE AS IF FINAL FEDERAL
ADJUSTMENTS HAD BEEN PROPERLY REPORTED
, PLUS ANY PENALTY AND
INTEREST DUE UNDER SECTION
39-22-621 AND LESS ANY CREDIT FOR
RELATED AMOUNTS PAID OR WITHHELD AND REMITTED ON BEHALF OF THE
DIRECT PARTNER UNDER SUBSECTION
(3)(c)(I)(D) OF THIS SECTION.
(d) (I) N
O LATER THAN NINETY DAYS AFTER THE FINAL
DETERMINATION DATE
, AN AUDITED PARTNERSHIP MAKING AN ELECTION
UNDER THIS SUBSECTION
(3)(d) SHALL FILE A COMPLETED FEDERAL
ADJUSTMENTS REPORT
, INCLUDING SUCH INFORMATION AS THE EXECUTIVE
DIRECTOR MAY PRESCRIBE
, AND NOTIFY THE EXECUTIVE DIRECTOR THAT IT
IS MAKING THE ELECTION UNDER THIS SUBSECTION
(3)(d).
(II) N
O LATER THAN ONE HUNDRED EIGHTY DAYS AFTER THE FINAL
DETERMINATION DATE
, AN AUDITED PARTNERSHIP MAKING AN ELECTION
UNDER THIS SUBSECTION
(3)(d) SHALL PAY THE AMOUNT DETERMINED
UNDER SUBSECTION
(3)(e) OF THIS SECTION IN LIEU OF TAXES OWED BY ITS
DIRECT AND INDIRECT PARTNERS
.
(III) F
INAL FEDERAL ADJUSTMENTS SUBJECT TO THE ELECTION
PROVIDED IN THIS SUBSECTION
(3)(d) EXCLUDE:
(A) T
HE DISTRIBUTIVE SHARE OF FINAL AUDIT ADJUSTMENTS THAT
UNDER PART
3 OF THIS ARTICLE 22 MUST BE INCLUDED IN THE UNITARY
BUSINESS INCOME OF ANY DIRECT OR INDIRECT CORPORATE PARTNER IF THE
PAGE 16-HOUSE BILL 23-1277 AUDITED PARTNERSHIP CAN REASONABLY DETERMINE THIS ; AND
(B) ANY FINAL FEDERAL ADJUSTMENTS RESULTING FROM AN
ADMINISTRATIVE ADJUSTMENT REQUEST
.
(IV) A
N AUDITED PARTNERSHIP NOT OTHERWISE SUBJECT TO ANY
REPORTING OR PAYMENT OBLIGATION TO THE STATE THAT MAKES AN
ELECTION UNDER THIS SUBSECTION
(3)(d) CONSENTS TO BE SUBJECT TO
COLORADO LAWS RELATED TO REPORTING , ASSESSMENT, PAYMENT, AND
COLLECTION OF
COLORADO TAX CALCULATED UNDER THE ELECTION .
(e) S
UBJECT TO THE LIMITATIONS IN SUBSECTION (3)(d)(III) OF THIS
SECTION
, THE AMOUNT DUE UNDER SUBSECTION (3)(d)(II) OF THIS SECTION
IS CALCULATED AS FOLLOWS
:
(I) E
XCLUDE FROM FINAL FEDERAL ADJUSTMENTS THE DISTRIBUTIVE
SHARE OF THESE ADJUSTMENTS REPORTED TO A DIRECT EXEMPT PARTNER
NOT SUBJECT TO TAX UNDER SECTION
39-22-112 (1);
(II) F
OR THE TOTAL DISTRIBUTIVE SHARES OF THE REMAINING FINAL
FEDERAL ADJUSTMENTS REPORTED TO DIRECT CORPORATE PARTNERS
SUBJECT TO TAX UNDER SECTION
39-22-301, AND TO DIRECT EXEMPT
PARTNERS SUBJECT TO TAX UNDER SECTION
39-22-112 (2), APPORTION AND
ALLOCATE SUCH ADJUSTMENTS AS PROVIDED UNDER SECTION
39-22-303.6
AND MULTIPLY THE RESULTING AMOUNT BY THE HIGHEST TAX RATE IN
EFFECT UNDER SECTION
39-22-301;
(III) F
OR THE TOTAL DISTRIBUTIVE SHARES OF THE REMAINING FINAL
FEDERAL ADJUSTMENTS REPORTED TO NONRESIDENT PARTNERS THAT ARE
DIRECT PARTNERS SUBJECT TO TAX UNDER SECTION
39-22-104, DETERMINE
THE AMOUNT OF SUCH ADJUSTMENTS DERIVED FROM SOURCES WITHIN
COLORADO UNDER SECTION 39-22-203 AND MULTIPLY THE RESULTING
AMOUNT BY THE HIGHEST TAX RATE IN EFFECT UNDER SECTION
39-22-104.
(IV) F
OR THE TOTAL DISTRIBUTIVE SHARES OF THE REMAINING FINAL
FEDERAL ADJUSTMENTS REPORTED TO TIERED PARTNERS
:
(A) D
ETERMINE THE AMOUNT OF SUCH ADJUSTMENTS WHICH IS OF
A TYPE THAT IT WOULD BE SUBJECT TO SOURCING BY A NONRESIDENT
PARTNER UNDER SECTION
39-22-109 AND THEN DETERMINE THE PORTION OF
PAGE 17-HOUSE BILL 23-1277 THIS AMOUNT THAT WOULD BE SOURCED TO THE STATE APPLYING THE RULES
OF THAT SECTION
;
(B) D
ETERMINE THE AMOUNT OF SUCH ADJUSTMENTS WHICH IS OF A
TYPE THAT IT WOULD NOT BE SUBJECT TO SOURCING BY A NONRESIDENT
PARTNER UNDER SECTION
39-22-109;
(C) D
ETERMINE THE PORTION OF THE AMOUNT DETERMINED IN
SUBSECTION
(3)(e)(IV)(B) OF THIS SECTION THAT CAN BE ESTABLISHED ,
UNDER RULES PROMULGATED BY THE EXECUTIVE DIRECTOR , TO BE PROPERLY
ALLOCABLE TO NONRESIDENT PARTNERS THAT ARE INDIRECT PARTNERS OR
OTHER PARTNERS NOT SUBJECT TO TAX ON THE ADJUSTMENTS OR THAT CAN
BE EXCLUDED UNDER PROCEDURES FOR A MODIFIED REPORTING AND
PAYMENT METHOD ALLOWED UNDER SUBSECTION
(3)(g) OF THIS SECTION;
(V) M
ULTIPLY THE TOTAL OF THE AMOUNTS DETERMINED IN
SUBSECTION
(3)(e)(IV)(A) AND (3)(e)(IV)(B) OF THIS SECTION AND THEN
REDUCED BY THE AMOUNT DETERMINED IN SUBSECTION
(3)(e)(IV)(C) OF
THIS SECTION BY THE HIGHEST TAX RATE IN EFFECT UNDER SECTION
39-22-104;
(VI) F
OR THE TOTAL DISTRIBUTIVE SHARES OF THE REMAINING FINAL
FEDERAL ADJUSTMENTS REPORTED TO RESIDENT PARTNERS THAT ARE DIRECT
PARTNERS SUBJECT TO TAX UNDER SECTION
39-22-104, MULTIPLY THAT
AMOUNT BY THE HIGHEST TAX RATE IN EFFECT UNDER SECTION
39-22-104;
AND
(VII) ADD THE AMOUNTS DETERMINED IN SUBSECTIONS (3)(e)(II),
(3)(e)(III), (3)(e)(V),
AND (3)(e)(VI) OF THIS SECTION ALONG WITH PENALTY
AND INTEREST AS PROVIDED IN SECTION
39-22-621.
(f) T
HE DIRECT AND INDIRECT PARTNERS OF AN AUDITED
PARTNERSHIP THAT ARE TIERED PARTNERS AND ALL OF THE PARTNERS OF
THOSE TIERED PARTNERS THAT ARE SUBJECT TO TAX UNDER THIS ARTICLE
22
ARE SUBJECT TO THE REPORTING AND PAYMENT REQUIREMENTS OF
SUBSECTION
(3)(b) OF THIS SECTION, AND THE TIERED PARTNERS ARE
ENTITLED TO MAKE THE ELECTIONS PROVIDED IN SUBSECTION
(3)(d) AND
(3)(g) OF THIS SECTION. THE TIERED PARTNERS OR THEIR PARTNERS SHALL
MAKE REQUIRED REPORTS AND PAYMENTS NO LATER THAN NINETY DAYS
AFTER THE TIME FOR FILING AND FURNISHING STATEMENTS TO TIERED
PAGE 18-HOUSE BILL 23-1277 PARTNERS AND THEIR PARTNERS AS ESTABLISHED UNDER SECTION 6226 OF
THE INTERNAL REVENUE CODE AND THE REGULATIONS THEREUNDER
. THE
EXECUTIVE DIRECTOR MAY PROMULGATE RULES TO ESTABLISH PROCEDURES
AND INTERIM TIME PERIODS FOR THE REPORTS AND PAYMENTS REQUIRED BY
TIERED PARTNERS AND THEIR PARTNERS AND FOR MAKING THE ELECTIONS
UNDER THIS SUBSECTION
(3).
(g) U
NDER PROCEDURES ADOPTED BY AND SUBJECT TO THE
APPROVAL OF THE EXECUTIVE DIRECTOR
, AN AUDITED PARTNERSHIP OR
TIERED PARTNER MAY ENTER INTO AN AGREEMENT WITH THE EXECUTIVE
DIRECTOR TO UTILIZE AN ALTERNATIVE REPORTING AND PAYMENT METHOD
,
INCLUDING APPLICABLE TIME REQUIREMENTS OR ANY OTHER PROVISION OF
THIS SUBSECTION
(3), IF THE AUDITED PARTNERSHIP OR TIERED PARTNER
DEMONSTRATES THAT THE REQUESTED METHOD WILL REAS ONABLY PROVIDE
FOR THE REPORTING AND PAYMENT OF TAXES
, PENALTIES, AND INTEREST
DUE UNDER THE PROVISIONS OF THIS SUBSECTION
(3) OR IF THE AUDITED
PARTNERSHIP OR TIERED PARTNER CAN SHOW THAT THEIR DIRECT PARTNERS
HAVE AGREED TO ALLOW A REFUND OF THE STATE TAX TO THE ENTITY
.
A
PPLICATION FOR APPROVAL OF AN ALTERNATIVE REPORTING AND PAYMENT
METHOD MUST BE MADE BY THE AUDITED PARTNERSHIP OR TIERED PARTNER
WITHIN THE TIME FOR ELECTION AS PROVIDED IN SUBSECTION
(3)(d) OR (3)(f)
OF THIS SECTION, AS APPROPRIATE.
(h) (I) T
HE ELECTION MADE PURSUANT TO SUBSECTION (3)(d) OR
(3)(g) OF THIS SECTION IS IRREVOCABLE, UNLESS THE EXECUTIVE DIRECTOR,
IN THE EXECUTIVE DIRECTOR'S DISCRETION, DETERMINES OTHERWISE.
(II) I
F PROPERLY REPORTED AND PAID BY THE AUDITED PARTNERSHIP
OR TIERED PARTNER
, THE AMOUNT DETERMINED IN SUBSECTION (3)(e) OF
THIS SECTION
, OR SIMILARLY UNDER AN OPTIONAL ELECTION UNDER
SUBSECTION
(3)(g) OF THIS SECTION, WILL BE TREATED AS PAID IN LIEU OF
TAXES OWED BY ITS DIRECT AND INDIRECT PARTNERS
, TO THE EXTENT
APPLICABLE
, ON THE SAME FINAL FEDERAL ADJUSTMENTS . THE DIRECT
PARTNERS OR INDIRECT PARTNERS MAY NOT TAKE ANY DEDUCTION OR
CREDIT FOR THIS AMOUNT OR CLAIM A REF UND OF THE AMOUNT IN THE
STATE
. NOTHING IN THIS SUBSECTION (3)(h)(II) PRECLUDES A RESIDENT
PARTNER THAT IS A DIRECT PARTNER FROM CLAIMING A CREDIT AGAINST
TAXES PAID TO THE STATE PURSUANT TO SECTION
39-22-108 FOR ANY
AMOUNTS PAID BY THE AUDITED PARTNERSHIP OR TIERED PARTNER ON THE
RESIDENT PARTNER
'S BEHALF TO ANOTHER STATE OR LOCAL TAX
PAGE 19-HOUSE BILL 23-1277 JURISDICTION.
(i) N
OTHING IN THIS SUBSECTION (3) PREVENTS THE EXECUTIVE
DIRECTOR FROM ASSESSING DIRECT PARTNERS OR INDIRECT PARTNERS FOR
TAXES THEY OWE
, USING THE BEST INFORMATION AVAILABLE , IF A
PARTNERSHIP OR TIERED PARTNER FAILS TO TIMELY MAKE ANY REPORT OR
PAYMENT REQUIRED BY THIS SUBSECTION
(3) FOR ANY REASON.
(4) T
HE EXECUTIVE DIRECTOR MAY PROMULGATE RULES TO
ESTABLISH A DE MINIMIS AMOUNT UPON WHICH A TAXPAYER SHALL NOT BE
REQUIRED TO COMPLY WITH SUBSECTIONS
(2) AND (3) OF THIS SECTION.
(5) T
HE EXECUTIVE DIRECTOR SHALL ASSESS ADDITIONAL TAX ,
INTEREST, AND PENALTIES ARISING FROM FINAL FEDERAL ADJUSTMENTS
ARISING FROM AN AUDIT BY THE INTERNAL REVENUE SERVICE
, INCLUDING A
PARTNERSHIP LEVEL AUDIT
, OR REPORTED BY THE TAXPAYER ON AN
AMENDED FEDERAL INCOME TAX RETURN OR AS PART OF AN
ADMINISTRATIVE ADJUSTMENT REQUEST ON OR BEFORE THE FOLLOWING
DATES
:
(a) I
F A TAXPAYER FILES WITH THE EXECUTIVE DIRECTOR A FEDERAL
ADJUSTMENTS REPORT OR AN AMENDED RETURN AS REQUIRED WITHIN THE
PERIOD SPECIFIED IN SUBSECTION
(2) OR (3) OF THIS SECTION, THE
EXECUTIVE DIRECTOR MAY ASSESS ANY AMOUNTS
, INCLUDING IN-LIEU-OF
AMOUNTS
, TAXES, INTEREST, AND PENALTIES ARISING FROM THOSE FEDERAL
ADJUSTMENTS
, IF THE EXECUTIVE DIRECTOR ISSUES A NOTICE OF DEFICIENCY
TO THE TAXPAYER ON OR BEFORE THE LATER OF
:
(I) T
HE EXPIRATION OF THE LIMITATIONS PERIOD SPECIFIED IN
SECTION
39-21-107 (2); OR
(II) THE EXPIRATION OF THE ONE-YEAR PERIOD FOLLOWING THE
DATE OF FILING WITH THE EXECUTIVE DIRECTOR OF THE FEDERAL
ADJUSTMENTS REPORT
.
(b) I
F THE TAXPAYER FAILS TO FILE THE FEDERAL ADJUSTMENTS
REPORT WITHIN THE PERIOD SPECIFIED IN SUBSECTION
(2) OR (3) OF THIS
SECTION
, AS APPROPRIATE, OR THE FEDERAL ADJUSTMENTS REPORT FILED BY
THE TAXPAYER OMITS FINAL FEDERAL ADJUSTMENTS OR UNDERSTATES THE
CORRECT AMOUNT OF TAX OWED
, THE EXECUTIVE DIRECTOR MAY ASSESS
PAGE 20-HOUSE BILL 23-1277 ANY TAXES, INTEREST, AND PENALTIES ARISING FROM THE FINAL FEDERAL
ADJUSTMENTS IF THE EXECUTIVE DIRECTOR ISSUES A NOTICE OF DEFICIENCY
TO THE TAXPAYER ON OR BEFORE THE LATER OF
:
(I) T
HE EXPIRATION OF THE LIMITATIONS PERIOD SPECIFIED IN
SECTION
39-21-107 (2);
(II) T
HE EXPIRATION OF THE ONE-YEAR PERIOD FOLLOWING THE
DATE THE FEDERAL ADJUSTMENTS REPORT WAS FILED WITH THE EXECUTIVE
DIRECTOR
; OR
(III) IN THE ABSENCE OF FRAUD, THE EXPIRATION OF THE SIX-YEAR
PERIOD FOLLOWING THE FINAL DETERMINATION DATE
.
(6) A
TAXPAYER MAY MAKE ESTIMATED PAYMENTS TO THE
EXECUTIVE DIRECTOR
, FOLLOWING THE PROCESS PRESCRIBED BY THE
EXECUTIVE DIRECTOR
, OF THE COLORADO TAX EXPECTED TO RESULT FROM
A PENDING INTERNAL REVENUE SERVICE AUDIT PRIOR TO THE DUE DATE OF
THE FEDERAL ADJUSTMENTS REPORT WITHOUT HAVING TO FILE THE REPORT
WITH THE EXECUTIVE DIRECTOR
. THE ESTIMATED TAX PAYMENTS SHALL BE
CREDITED AGAINST ANY TAX LIABILITY ULTIMATELY FOUND TO BE DUE TO
COLORADO AND WILL LIMIT THE ACCRUAL OF FURTHER STATUTORY
INTEREST ON THAT AMOUNT
. IF THE ESTIMATED TAX PAYMENTS EXCEED THE
FINAL TAX LIABILITY AND STATUTORY INTEREST ULTIMATELY DETERMINED
TO BE DUE
, THE TAXPAYER IS ENTITLED TO A REFUND OR CREDIT FOR THE
EXCESS IF THE TAXPAYER FILES A FEDERAL ADJUSTMENTS REPORT OR CLAIM
FOR REFUND OR CREDIT OF TAX NO LATER THAN ONE YEAR FOLLOWING THE
FINAL DETERMINATION DATE
.
(7) (a) E
XCEPT FOR FINAL FEDERAL ADJUSTMENTS REQUIRED TO BE
REPORTED FOR FEDERAL PURPOSES BY TAKING THOSE ADJUSTMENTS INTO
ACCOUNT IN THE PARTNERSHIP RETURN FOR THE YEAR OF ADJUSTMENT
, A
TAXPAYER MAY FILE A CLAIM FOR REFUND OR CREDIT OF TAX ARISING FROM
FEDERAL ADJUSTMENTS MADE BY THE INTERNAL REVENUE SERVICE ON OR
BEFORE THE LATER OF
:
(I) T
HE EXPIRATION OF THE LAST DAY FOR FILING A CLAIM FOR
REFUND OR CREDIT OF TAX PURSUANT TO SECTION
39-21-108 (1), INCLUDING
ANY EXTENSIONS
; OR
PAGE 21-HOUSE BILL 23-1277 (II) ONE YEAR FROM THE DATE A FEDERAL ADJUSTMENTS REPORT
PRESCRIBED IN SUBSECTION
(2) OR (3) OF THIS SECTION, AS APPLICABLE, WAS
DUE TO THE EXECUTIVE DIRECTOR
, INCLUDING ANY EXTENSIONS PURSUANT
TO SUBSECTION
(8) OF THIS SECTION.
(b) T
HE FEDERAL ADJUSTMENTS REPORT IS THE MEANS FOR THE
TAXPAYER TO REPORT ADDITIONAL TAX DUE
, REPORT A CLAIM FOR REFUND
OR CREDIT OF TAX
, AND MAKE OTHER ADJUSTMENTS INCLUDING TO ITS NET
OPERATING LOSSES RESULTING FROM ADJUSTMENTS TO THE TAXPAYER
'S
FEDERAL TAXABLE INCOME
. ANY REFUND GRANTED TO THE ENTITY UNDER
SUBSECTION
(3) OF THIS SECTION IS IN LIEU OF STATE TAX THAT MAY BE
OWED TO THE PARTNERS
.
(8) (a) U
NLESS OTHERWISE AGREED TO IN WRITING BY THE
TAXPAYER AND THE EXECUTIVE DIRECTOR
, ANY ADJUSTMENTS BY THE
EXECUTIVE DIRECTOR OR BY THE TAXPAYER MADE AFTER THE EXPIRATION
OF THE PERIOD DESCRIBED IN SECTION
39-21-107 (2) OR 39-21-108 (1), AS
APPLICABLE
, IS LIMITED TO CHANGES TO THE TAXPAYER 'S TAX LIABILITY
ARISING FROM FEDERAL ADJUSTMENTS
.
(b) T
HE PERIODS PROVIDED FOR IN THIS SECTION MAY BE EXTENDED :
(I) A
UTOMATICALLY, UPON WRITTEN NOTICE TO THE EXECUTIVE
DIRECTOR
, BY SIXTY DAYS FOR AN AUDITED PARTNERSHIP OR TIERED
PARTNER WHICH HAS TEN THOUSAND OR MORE DIRECT PARTNERS
; OR
(II) BY WRITTEN AGREEMENT BETWEEN THE TAXPAYER AND THE
EXECUTIVE DIRECTOR
.
(c) A
NY EXTENSION GRANTED UNDER THIS SUBSECTION (8) FOR
FILING THE FEDERAL ADJUSTMENTS REPORT EXTENDS THE LAST DAY
PRESCRIBED BY LAW FOR ASSESSING ANY ADDITIONAL TAX ARISING FROM
THE ADJUSTMENTS TO FEDERAL TAXABLE INCOME AND THE PERIOD FOR
FILING A CLAIM FOR REFUND OR CREDIT OF TAXES
.
(9) T
HIS SECTION APPLIES TO ANY ADJUSTMENTS TO A TAXPAYER 'S
FEDERAL TAXABLE INCOME WITH A FINAL D ETERMINATION DATE OCCURRING
ON AND AFTER
JANUARY 1, 2024.
SECTION 3. In Colorado Revised Statutes, 39-22-608, amend (2)
PAGE 22-HOUSE BILL 23-1277 as follows:
39-22-608. Form, place, and date of filing return - extension -
electronic filing. (2) (a) E
XCEPT AS PROVIDED IN SUBSECTION (2)(b) OF
THIS SECTION
, all returns shall
REQUIRED BY SECTION 39-22-601 MUST be
filed in the office of the executive director on or before the fifteenth day of
the fourth month following the close of the taxable year. The executive
director may grant a reasonable extension of time for filing returns and for
paying the tax under such rules and regulations as he shall prescribe.
(b) FOR TAXABLE YEARS BEGINNING ON AND AFTER JANUARY 1,
2024,
EVERY C CORPORATION SUBJECT TO TAXATION UNDER THIS ARTICLE
22 SHALL FILE THE RETURN REQUIRED BY SECTION 39-22-601 (2) IN THE
OFFICE OF THE EXECUTIVE DIRECTOR ON OR BEFORE THE FIFTEENTH DAY OF
THE FIFTH MONTH FOLLOWING THE CLOSE OF THE TAXABLE YEAR
.
(c) T
HE EXECUTIVE DIRECTOR MAY GRANT A REASONABLE
EXTENSION OF TIME FOR FILING RETURNS AND FOR PAYING THE TAX
PURSUANT TO RULES PRESCRIBED BY THE EXECUTIVE DIRECTOR
.
SECTION 4. In Colorado Revised Statutes, 39-21-107, amend (2)
as follows:
39-21-107. Limitations. (2) In the case of an income tax imposed
by article 22 of this title 39, unless such time is extended by waiver and
except as provided in subsection (2.5) of this section, and
section 39-22-601
(6)(e),
AND SECTION 39-22-601.5, the assessment of any tax, penalties, and
interest shall be made within one year after the expiration of the time
provided for assessing a deficiency in federal income tax or changing the
reported federal taxable income of a partnership, limited liability company,
or fiduciary; including any extensions of such period by agreement between
the taxpayer and the federal taxing authorities; except that a written
proposed adjustment of the tax liability by the department shall MUST extend
the limitation of this subsection (2) for one year after a final determination
or assessment is made. and except that, if the taxpayer has been audited by
the department for the year in question and the issues raised in the audit
have been settled by agreement for payment or payment of deficiencies
arising therefrom, then any additional assessment shall be limited to
deficiencies arising as a result of adjustments made by the commissioner of
internal revenue in the final determination of federal taxable income. An
PAGE 23-HOUSE BILL 23-1277 assessment of income taxes having been made according to law shall MUST
be good and valid and collection thereof may be enforced at any time within
six years from the date of said assessment.
SECTION 5. In Colorado Revised Statutes, 39-21-108, amend
(1)(a) as follows:
39-21-108. Refunds. (1) (a) In the case of income tax imposed by
article 22 of this title TITLE 39, EXCEPT AS PROVIDED IN SECTION
39-22-601.5, the taxpayer must file any claim for refund or credit for any
year not later than the period provided for filing a claim for refund of
federal income tax plus one year. However, any extensions of the period by
agreement between the taxpayer and the federal taxing authorities shall
extend the period established in this section by the same amount of time.
The department shall not pay any refund for which the claim is filed later than the period provided for the payment of a refund of federal income tax plus one year. However, no refund or credit of income tax shall
MAY be
made to any taxpayer who fails to file a return pursuant to section
39-22-601 within four years from the date the return was required to be
filed. Except in the case of failure to file a return or the filing of a false or
fraudulent return with intent to evade tax and otherwise notwithstanding any
provision of law, the statute of limitations relating to claims for refund or
credit for any year shall not expire prior to the expiration of the time within
which a deficiency for such year could be assessed. In the case of the charge
on oil and gas production imposed by article 60 of title 34, C.R.S.,
and the
passenger-mile tax imposed by article 3 of title 42, C.R.S., or the severance
tax imposed by article 29 of this title TITLE 39, the taxpayer shall file any
claim for refund or credit for any period not later than three years after the
date of payment. Claims for refund of other taxes covered by this article
shall ARTICLE 21 MUST be made within the time limits expressly provided
for the specific taxes involved. Except as provided in section 39-21-105, no
suit for refund may be commenced. This subsection (1) shall
DOES not apply
to sales and use taxes.
SECTION 6. In Colorado Revised Statutes, 39-21-119.5, amend
(2)(a)(II) and (2)(a)(IV) as follows:
39-21-119.5. Mandatory electronic filing of returns - mandatory
electronic payment - penalty - waiver - definitions. (2) Except as
provided in subsection (6) of this section, the executive director may, as
PAGE 24-HOUSE BILL 23-1277 specified in subsection (3) of this section, require the electronic filing of
returns and require the payment of any tax or fee due by electronic funds
transfer for the following:
(a) Any income tax return required for:
(II) A
AN S corporation pursuant to section 39-22-601 (2.5) SECTION
39-22-601 (2.7), INCLUDING THE INFORMATION REPORTS REQUIRED BY
SECTION
39-22-601 (2.7)(b), COMPOSITE RETURNS FILED ON BEHALF OF
NONRESIDENT SHAREHOLDERS
, AND AGREEMENTS FILED UNDER SECTION
39-22-601 (2.7)(e);
(IV) A partnership pursuant to section 39-22-601 (5)
SECTION
39-22-601 (5.5), including THE INFORMATION REPORTS REQUIRED BY
SECTION
39-22-601 (5.5)(b), composite returns filed on behalf of
nonresident partners,
AND agreements filed under section 39-22-601 (5)(e);
and payments made under section 39-22-601 (5)(h) SECTION 39-22-601
(5.5)(e);
SECTION 7. In Colorado Revised Statutes, repeal 39-22-328 as
follows:
39-22-328. Returns. An S corporation which engages in activity in
this state shall be subject to the requirements of section 39-22-601 (2.5).
SECTION 8. In Colorado Revised Statutes, 39-22-344, amend (5)
as follows:
39-22-344. Imposition of tax. (5) The provisions of sections
39-22-601 (2.5)(d) through (2.5)(i) and (5)(d) through (5)(i) SECTION
39-22-601 (2.7)(d) AND (5.5)(d) are not applicable to an electing
pass-through entity.
SECTION 9. Act subject to petition - effective date. Sections 6,
7, and 8 of this act take effect January 1, 2024, 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 adornment 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 the ninety-day period after final adjournment of the general
PAGE 25-HOUSE BILL 23-1277 assembly, then the act, item, section, or part will not take effect unless
approved by the people at the general election to be held in November 2024
and, in such case, on the date of the official declaration of the vote thereon
by the governor.
____________________________ ____________________________
Julie McCluskie 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 26-HOUSE BILL 23-1277