NOTE:  This bill has been prepared for the signature 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.
      
      
      HOUSE BILL 10-1002
      
      
      BY REPRESENTATIVE(S) Kefalas, Gagliardi, Kagan, Apuan, Benefield,
      Casso, Court, Ferrandino, Fischer, Frangas, Hullinghorst, Kerr A., Labuda,
      Levy, McFadyen, Merrifield, Middleton, Miklosi, Pace, Peniston, Pommer,
      Rice, Riesberg, Ryden, Schafer S., Solano, Todd, Tyler, Vigil, Carroll T.;
      also SENATOR(S) Sandoval, Boyd, Hudak, Steadman, Williams.
      
      
      Concerning an increase in the threshold necessary to trigger a
           temporary income tax rate reduction as a method to refund
           excess state revenues by an amount equal to the threshold
           necessary to trigger the earned income tax credit refund.
       
      
      Be it enacted by the General Assembly of the State of Colorado:
      
           SECTION 1.  39-22-627 (1) (b), (3), and (6), Colorado Revised
      Statutes, are amended to read:
      
           39-22-627.  Temporary adjustment of rate of income tax - refund
      of excess state revenues - authority of executive director.  (1) (b)  In
      order for the provisions of paragraph (a) of this subsection (1) to take effect,
      the amount of state revenues required to be refunded for the specified state
      fiscal year shall exceed the total of the adjusted amount set forth in
      section 39-22-123 (4) (c), plus the estimated amount by which state
      revenues would be decreased as the result of a reduction in the state income
      tax rate from four and sixty-three one-hundredths percent to four and
      one-half percent of federal taxable income, as determined pursuant to this
      section.
      
           (3)  If one or more ballot questions are submitted to the voters at a
      statewide election to be held in November of any given calendar year that
      seek authorization for the state to retain and spend all or any portion of the
      amount of excess state revenues for the state fiscal year ending during said
      calendar year, the executive director shall not reduce the state income tax
      rate until the results of said election are known so that the state income tax
      rate may be reduced only if, after the results of said election, the amount of
      excess state revenues required to be refunded for the state fiscal year
      exceeds the total of the adjusted amount set forth in section
      39-22-123 (4) (c), plus the estimated amount by which state revenues
      would be decreased as a result of a reduction in the state income tax rate
      from four and sixty-three one-hundredths percent to four and one-half
      percent of federal taxable income pursuant to this section.
      
           (6)  If, based on the financial report prepared by the controller in
      accordance with section 24-77-106.5, C.R.S., the controller certifies that the
      amount of the state revenues for any state fiscal year commencing on or
      after July 1, 2010, exceeds the limitation on state fiscal year spending
      imposed by section 20 (7) (a) of article X of the state constitution for that
      state fiscal year and exceeds the amount of excess state revenues that the
      voters statewide have authorized the state to retain and spend for that state
      fiscal year by less than the total of the adjusted amount set forth in
      section 39-22-123 (4) (c), plus the estimated amount by which state
      revenues would be decreased as the result of a reduction in the state income
      tax rate from four and sixty-three one-hundredths percent to four and
      one-half percent of federal taxable income as calculated by the executive
      director pursuant to subsection (2) of this section, then the reduction in the
      state income tax rate allowed pursuant to subsection (1) of this section shall
      not be allowed for the income tax year commencing during the calendar
      year in which the state fiscal year ended.
      
           SECTION 2.  Act subject to petition - effective date.  This act
      shall take effect at 12:01 a.m. on the day following the expiration of the
      ninety-day period after final adjournment of the general assembly (August
      11, 2010, if adjournment sine die is on May 12, 2010); 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 shall not take effect unless
      approved by the people at the general election to be held in November 2010
      and shall take effect on the date of the official declaration of the vote
      thereon by the governor.
      
      
      
      
      ________________________________________________________
      Terrance D. Carroll                Brandon C. Shaffer
      SPEAKER OF THE HOUSE                     PRESIDENT OF
      OF REPRESENTATIVES                         THE SENATE
      
      
      
      
      
      
      ____________________________  ____________________________
      Marilyn Eddins                          Karen Goldman
      CHIEF CLERK OF THE HOUSE                 SECRETARY OF
      OF REPRESENTATIVES                         THE SENATE
      
      
      
      
                  APPROVED________________________________________
      
      
      
      
      
                                    _________________________________________
                                    Bill Ritter, Jr.
                                    GOVERNOR OF THE STATE OF COLORADO