First Extraordinary Session
              Sixty-fifth General Assembly
                    STATE OF COLORADO
                                                 INTRODUCED
                                                           
                                                           
 LLS NO. 06B-2081.01 Jason Gelender     HOUSE BILL 06S-1015
                    HOUSE SPONSORSHIP
 Kerr A., 
 
                   SENATE SPONSORSHIP
 Keller, 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 House Committees
 Senate Committees
 
 
 Business Affairs and Labor
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                         A BILL FOR AN ACT
       Concerning a requirement that a person withhold Colorado
            income tax from a payment to a person other than an
            employee for services performed.
       
       
                           Bill Summary
       
            (Note:  This summary applies to this bill as introduced and does
       not necessarily reflect any amendments that may be subsequently
       adopted.)
       
            Requires a person that makes a payment to another person for
       services performed and reports that payment on internal revenue service
       form 1099-MISC to deduct and withhold state income tax at the rate of
       4.63% if the person who performed the services:
                Fails to provide a correct taxpayer identification number;
                 or
                Provides an internal revenue service-issued taxpayer
                 identification number issued for nonresident aliens.
       
       
       
       Be it enacted by the General Assembly of the State of Colorado:
            SECTION 1.  39-22-604, Colorado Revised Statutes, is amended
       BY THE ADDITION OF A NEW SUBSECTION to read:
            39-22-604.  Withholding tax - requirement to withhold - tax
       lien - exemption from lien.  (18) (a)  Any person who makes a
       payment to another person for services performed and reports
       that payment on internal revenue service form 1099-MISC shall
       deduct and withhold state income tax at the rate of four and
       sixty-three one-hundredths percent if the person who performed
       the services:
            (I)  Fails to provide a correct taxpayer identification
       number; or
            (II)  Provides an internal revenue service-issued taxpayer
       identification number issued for nonresident aliens.
            (b)  The requirement to withhold and deduct pursuant to
       paragraph (a) of this subsection (18) shall not apply to an
       individual who is exempt from federal withholding pursuant to
       a properly filed internal revenue service form 8233 if a copy of
       such form has been filed with the department of revenue.
            (c)  For purposes of all other provisions of this section,
       excluding paragraph (a) of subsection (3) of this section, a
       person who deducts and withholds state income tax from a
       person who performs services pursuant to the provisions of this
       subsection (18) shall be treated as an employer withholding and
       deducting wages from an employee, and such other provisions of
       this section shall apply accordingly.  This paragraph (c) shall
       not be construed as making the person who performed the
       services an employee of the person who deducts and withholds
       state income tax for any other purpose in law.
            SECTION 2.  Effective date - applicability.  This act shall take
       effect January 1, 2007, and shall apply to services performed on or after
       said date.
            SECTION 3.  Safety clause.  The general assembly hereby finds,
       determines, and declares that this act is necessary for the immediate
       preservation of the public peace, health, and safety.