HOUSE 3rd Reading Unamended May 6, 2011 HOUSE 2nd Reading Unamended May 5, 2011First Regular Session Sixty-eighth General Assembly STATE OF COLORADO REENGROSSED This Version Includes All Amendments Adopted in the House of Introduction LLS NO. 11-1053.01 Nicole Myers HOUSE BILL 11-1314 HOUSE SPONSORSHIP Sonnenberg, SENATE SPONSORSHIP Jahn, House Committees Senate Committees Economic and Business Development A BILL FOR AN ACT Concerning a repeal of the requirement that a taxpayer located in an enterprise zone obtain pre-certification prior to engaging in an activity for which the taxpayer intends to claim an enterprise zone tax credit. Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://www.leg.state.co.us/billsummaries.) Current law requires that, beginning on January 1, 2012, a taxpayer that does business in an enterprise zone shall obtain pre-certification from the enterprise zone administrator before engaging in an activity for which the taxpayer intends to claim an enterprise zone tax credit. Current law also requires that a taxpayer that completes an activity prior to January 1, 2012, for which the taxpayer intends to claim an enterprise zone tax credit, shall submit to the enterprise zone administrator by a certain date any information related to the completed activity that is necessary to receive certification from the enterprise zone administrator. The bill eliminates both of these requirements. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. Repeal. 39-30-103 (7), Colorado Revised Statutes, is repealed as follows: 39-30-103. Zones established - termination. (7) (a) Beginning on January 1, 2012, before a taxpayer engages in any activity for which the taxpayer intends to claim an income tax credit pursuant to section 39-30-104, 39-30-105, 39-30-105.5, or 39-30-105.6, an authorized company official of the taxpayer's business or the taxpayer who is the owner of the business shall submit a pre-certification form to the enterprise zone administrator as specified in this subsection (7). A taxpayer that completes an activity prior to January 1, 2012, for which the taxpayer intends to claim an income tax credit pursuant to this article shall submit to the zone administrator on or before December 31, 2012, any information related to such completed activity that is necessary to receive certification from the zone administrator that the taxpayer's business is located in the enterprise zone. Nothing in this subsection (7) shall be construed to require a taxpayer to submit a pre-certification form to the zone administrator for activities completed prior to January 1, 2012. In connection with the pre-certification, the taxpayer shall be required to: (I) Obtain verification from the enterprise zone administrator that the taxpayer's business is located in an enterprise zone; (II) Certify that the taxpayer is aware of the enterprise zone income tax credits allowed pursuant to this article; (III) Certify that the enterprise zone income tax credits allowed pursuant to this article are a contributing factor to the start-up, expansion, or relocation of the taxpayer's business in the enterprise zone; and (IV) Certify that the taxpayer acknowledges that the pre-certification required pursuant to this section is for activities that shall commence after the date that the pre-certification form is executed by the enterprise zone administrator through the end of the business's then-current income tax year. (b) The department of revenue shall amend the current certification forms that a taxpayer is required to complete in connection with claiming an income tax credit pursuant to this article, to include a section through which the taxpayer or an authorized company official of the taxpayer's business may provide the information required pursuant to subparagraphs (II) to (IV) of paragraph (a) of this subsection (7). SECTION 2. 39-30-110, Colorado Revised Statutes, is amended to read: 39-30-110. Electronic submissions. (1) The Colorado office of economic development shall collaborate with the Colorado economic development commission and the department of revenue to develop the capability to allow taxpayers that intend to claim one or more income tax credits pursuant to this article to obtain any necessary certification including pre-certification requirements, from the enterprise zone administrator in an electronic format. The Colorado office of economic development shall implement the electronic submission system by January 1, 2013. If the Colorado office of economic development is unable to implement an electronic submission system by January 1, 2013, the office shall submit a report to the Colorado economic development commission and the general assembly that explains the reasons that the implementation of such system has not been accomplished. (2) Nothing in subsection (1) of this section shall be construed to prohibit a taxpayer that intends to claim one or more income tax credits pursuant to this article from submitting printed copies of certification forms. including pre-certification requirements. SECTION 3. 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 10, 2011, if adjournment sine die is on May 11, 2011); 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 2012 and shall take effect on the date of the official declaration of the vote thereon by the governor.