HOUSE 3rd Reading Unamended May 4, 2016 HOUSE Amended 2nd Reading May 3, 2016Second Regular Session Seventieth General Assembly STATE OF COLORADO REENGROSSED This Version Includes All Amendments Adopted in the House of Introduction LLS NO. 16-1050.01 Kate Meyer x4348 HOUSE BILL 16-1371 HOUSE SPONSORSHIP Kagan, Arndt, Court, Danielson, Duran, Esgar, Fields, Garnett, Hullinghorst, Kraft-Tharp, Lebsock, Lee, McCann, Melton, Mitsch Bush, Pettersen, Primavera, Rosenthal, Ryden, Salazar, Tyler, Williams, Winter, Young SENATE SPONSORSHIP Kefalas, House Committees Senate Committees Finance Appropriations A BILL FOR AN ACT Concerning the opportunity for a taxpayer to specify multiple methods by which to receive an income tax refund, and, in connection therewith, making an appropriation. 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.) Currently, a taxpayer may opt to receive his or her income tax refund in the form of a check, or may elect to have his or her income tax refund directly deposited into one of the following: A savings account, a checking account, or a college savings account administered by collegeinvest, a division of the Colorado department of higher education. The bill requires the department of revenue to provide a taxpayer the opportunity to apportion his or her income tax refund among up to 4 such methods; except that collegeinvest savings account refund deposits must be at least $25, and also the department of revenue retains the right to issue refunds in a manner it deems the most administratively efficient. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, 39-22-628, amend (2) as follows: 39-22-628. Direct deposit of refund to collegeinvest savings accounts - modification of individual income tax return forms - legislative declaration - definition. (2) (a) For Colorado state individual income tax return forms used for tax years beginning on and after January 1, 2013 January 1, 2016, each such form must allow an individual taxpayer who is owed a refund the option of making a direct deposit to a one or more collegeinvest savings account accounts, provided that each such direct deposit is at least twenty-five dollars. (b) Each form must permit the direct deposit to only a single collegeinvest savings account. SECTION 2. In Colorado Revised Statutes, add 39-22-629 as follows: 39-22-629. Receipt of refund via multiple methods - modification of individual income tax return form - legislative declaration. (1) The general assembly hereby finds, determines, and declares that it is in the best interest of Colorado taxpayers to make it easier for them to save all or a portion of their state income tax refunds in the ways they see fit by providing them the opportunity to designate, on the Colorado state individual income tax return form, multiple methods by which they receive such refunds. The general assembly further declares that nothing in this section is intended to affect the department of revenue's duty or ability to take action to maintain the integrity of the income tax refund process. (2) For tax years beginning on and after January 1, 2016, the department of revenue shall provide an individual taxpayer who is owed a refund the opportunity to divide the refund among up to four of the following: (a) A check; (b) Direct deposit into one or more savings accounts; (c) Direct deposit to one or more checking accounts; and (d) Direct deposit to one or more collegeinvest savings accounts, in accordance with section 39-22-628. (3) The department of revenue may modify the state individual income tax return form as necessary to enable an individual taxpayer to designate the methods by which his or her refund should be provided, pursuant to subsection (2) of this section. (4) Notwithstanding any allowance for a taxpayer to designate a method or multiple methods of refund, if for any reason the amount of a refund is not the amount shown on the taxpayer's return, or in order to protect the integrity of the income tax refund process or otherwise to administer the income tax, the department of revenue may issue a taxpayer's refund in the manner that it reasonably deems to be most administratively efficient. SECTION 3. Appropriation. (1) For the 2016-17 state fiscal year, $86,356 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) $20,738 for personal services, for use by the taxpayer services division, which amount is based on an assumption that the division will require an additional 0.3 FTE; (b) $56,000 for CITA annual maintenance and support; and (c) $9,618 for document management. (2) For the 2016-17 state fiscal year, $9,618 is appropriated to the department of personnel. This appropriation is from reappropriated funds received from the department of revenue under paragraph (c) of subsection (1) of this section. To implement this act, the department of personnel may use this appropriation to provide document management services for the department of revenue. SECTION 4. 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 10, 2016, if adjournment sine die is on May 11, 2016); 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.