SENATE BILL 97045
BY SENATORS Alexander, Norton, Tanner, Arnold, Bishop, Chlouber, Dennis, Hernandez, Johnson, Linkhart, Martinez, Matsunaka, Pascoe, Phillips, Powers, Rupert, Schroeder, and Tebedo;
also REPRESENTATIVES Allen, C. Berry, Keller,
Gotlieb, Pfiffner, Tupa, S. Williams, and Young.
CONCERNING AN ADJUSTMENT TO COLORADO TAXABLE INCOME
TO EXCLUDE FROM SUCH INCOME THE PORTION ATTRIBUTABLE TO CERTAIN
INCOME OF A DISTRIBUTION UNDER A QUALIFIED STATE TUITION PROGRAM
THAT IS DISTRIBUTED FOR THE PURPOSE OF MEETING QUALIFIED HIGHER
EDUCATION EXPENSES.
Be it enacted by the General Assembly of the State
of Colorado:
SECTION 1. 3922104
(4), Colorado Revised Statutes, 1994 Repl. Vol., is amended BY
THE ADDITION OF A NEW PARAGRAPH to read:
3922104. Income tax imposed
on individuals, estates, and trusts single rate.
(4) There shall be subtracted from federal taxable
income:
(i) FOR INCOME TAX YEARS COMMENCING ON
AND AFTER JANUARY 1, 1998, AN AMOUNT EQUAL TO THE PORTION ATTRIBUTABLE
TO INTEREST AND OTHER INCOME OF A DISTRIBUTION UNDER A QUALIFIED
STATE TUITION PROGRAM THAT IS DISTRIBUTED FOR THE PURPOSE OF MEETING
QUALIFIED HIGHER EDUCATION EXPENSES OF A DESIGNATED BENEFICIARY,
TO THE EXTENT SUCH AMOUNT IS INCLUDED IN FEDERAL TAXABLE INCOME.
AS USED IN THIS PARAGRAPH (i), "DESIGNATED BENEFICIARY"
MEANS A DESIGNATED BENEFICIARY AS DEFINED IN SECTION 529 (e) (1)
OF THE INTERNAL REVENUE CODE, "QUALIFIED STATE TUITION PROGRAM"
MEANS A QUALIFIED STATE TUITION PROGRAM AS DEFINED IN SECTION
529 (b) OF THE INTERNAL REVENUE CODE, AND "QUALIFIED HIGHER
EDUCATION EXPENSES" MEANS QUALIFIED HIGHER EDUCATION EXPENSES
AS DEFINED IN SECTION 529 (e) (3) OF THE INTERNAL REVENUE CODE.
SECTION 2. Effective date. This
act shall take effect at 12:01 a.m. on the day following the expiration
of the ninetyday period after final adjournment of the general
assembly that is allowed for submitting a referendum petition
pursuant to article V, section 1 (3) of the state constitution;
except that, if a referendum petition is filed against this act
or an item, section, or part of this act within such period, then
the act, item, section, or part, if approved by the people, shall
take effect on the date of the official declaration of the vote
thereon by proclamation of the governor.
____________________________ ____________________________
Tom Norton Charles E. Berry
PRESIDENT OF SPEAKER OF THE HOUSE
THE SENATE OF REPRESENTATIVES
____________________________ ____________________________
Joan M. Albi Judith M. Rodrigue
SECRETARY OF CHIEF CLERK OF THE HOUSE
THE SENATE OF REPRESENTATIVES
APPROVED________________________________________
_________________________________________
Roy Romer
GOVERNOR OF THE STATE OF COLORADO