NOTE: The governor signed this measure on 5/27/2015.
      
      
      HOUSE BILL 15-1181
      
      
      BY REPRESENTATIVE(S) Keyser, Carver, Danielson, Duran, Fields,
      Garnett, Ginal, Hamner, Kagan, Klingenschmitt, Kraft-Tharp, Landgraf,
      Lontine, Mitsch Bush, Moreno, Pabon, Pettersen, Priola, Rankin,
      Rosenthal, Roupe, Ryden, Salazar, Williams, Young;
      also SENATOR(S) Crowder, Balmer, Carroll, Donovan, Garcia, Heath,
      Hill, Johnston, Kefalas, Kerr, Lambert, Merrifield, Roberts, Scheffel, Scott,
      Todd, Ulibarri.
      
      
      Concerning the exemption from the state income tax of active
           duty military income earned by a resident individual in the
           armed forces of the United States.
      
      
      Be it enacted by the General Assembly of the State of Colorado:
      
           SECTION 1.  Short title. This act shall be known as the "Colorado
      is Honoring Our Military Exemption (Colorado is HOME) Act".
      
           SECTION 2.  Legislative declaration. The general assembly
      hereby finds and declares that the intended purpose of the state income tax
      exemption created in this act is to encourage Colorado residents who serve
      on active duty in the armed forces of the United States to retain their
      resident status in Colorado and to allow active duty service members to
      retain their identity as Colorado residents so that no matter where they
      serve, they can always call Colorado their home.
      
           SECTION 3.  In Colorado Revised Statutes, add 39-22-110.5 as
      follows:
      
           39-22-110.5.  Reacquisition of residency during active duty
      military service. (1)  An individual in active duty military service
      whose home of record is Colorado and whose state of legal
      residence commencing on or after January 1, 2016, is a state other
      than Colorado may reacquire legal residence in the state,
      regardless of whether the individual has a physical presence in
      the state, if the individual intends to make Colorado his or her
      state of legal residence. For purposes of this section, evidence of
      an intent to make this state an individual's state of legal
      residence must include one or more of the following:
      
           (a)  Registering to vote in the state;
      
           (b)  Purchasing residential property or an unimproved
      residential lot in the state;
      
           (c)  Titling and registering a motor vehicle in the state;
      
           (d)  Notifying the state of the individual's previous legal
      residence of the intent to make Colorado the individual's state of
      legal residence; or
      
           (e)  Preparing a new last will and testament that indicates
      Colorado as the individual's state of legal residence.
      
           SECTION 4.  In Colorado Revised Statutes, 39-22-104, add (4) (u)
      as follows:
      
           39-22-104.  Income tax imposed on individuals, estates, and
      trusts - single rate - definitions - repeal. (4)  There shall be subtracted
      from federal taxable income:
      
           (u)  For income tax years commencing on or after January
      1, 2016, an amount equal to any compensation received for active
      duty service in the armed forces of the United States by an
      individual who has reacquired residency in the state pursuant to
      section 39-22-110.5, to the extent that the compensation is
      included in federal taxable income.
      
           SECTION 5.  In Colorado Revised Statutes, 39-22-601, add (1) (a)
      (III) as follows:
      
           39-22-601.  Returns. (1) (a) (III)  For purposes of this
      paragraph (a), an individual whose only source of income is
      compensation that is subtracted from federal taxable income
      under section 39-22-104 (4) (u) need not file a return.
      
           SECTION 6.  In Colorado Revised Statutes, 39-22-604, add (20)
      as follows:
      
           39-22-604.  Withholding tax - requirement to withhold - tax lien
      - exemption from lien - definitions. (20)  No amount is required to be
      deducted and withheld from an employee's wages pursuant to this
      section for income tax due to the state if the employee's
      withholding certificate indicates that the compensation is
      eligible to be subtracted from federal taxable income pursuant
      to section 39-22-104 (4) (u).
      
           SECTION 7.  Act subject to petition - effective date. 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 (August
      5, 2015, if adjournment sine die is on May 6, 2015); 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 November 2016
      and, in such case, will take effect on the date of the official declaration of
      the vote thereon by the governor.
      
      
      
      
      ________________________________________________________
      Dickey Lee Hullinghorst                Bill L. Cadman
      SPEAKER OF THE HOUSE                     PRESIDENT OF
      OF REPRESENTATIVES                         THE SENATE
      
      
      
      
      
      
      ____________________________  ____________________________
      Marilyn Eddins                      Cindi L. Markwell
      CHIEF CLERK OF THE HOUSE                 SECRETARY OF
      OF REPRESENTATIVES                         THE SENATE
      
      
      
      
                  APPROVED________________________________________
      
      
      
      
      
                                    _________________________________________
                                    John W. Hickenlooper
                                    GOVERNOR OF THE STATE OF COLORADO