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Second Regular Session

Sixty-first General Assembly

LLS NO. 98­0668.01 DLC HOUSE BILL 98­1263

STATE OF COLORADO

BY REPRESENTATIVES Saliman, Bacon, Chavez, Clarke, Dyer, Gordon, Grossman, June, Keller, Leyba, Mace, Nichol, Reeser, Romero, Takis, Tate, Tupa, Udall, Veiga, S. Williams, and Zimmerman;

also SENATORS Phillips, Hernandez, Matsunaka, and Pascoe.

FINANCE

A BILL FOR AN ACT

CONCERNING THE DISPOSITION OF STATE REVENUES IN EXCESS OF THE CONSTITUTIONAL LIMITATION ON STATE FISCAL YEAR SPENDING FOR FIVE CONSECUTIVE STATE FISCAL YEARS, AND, IN CONNECTION THEREWITH, SPECIFYING THAT SUCH TRANSFERS ARE NOT APPROPRIATIONS THAT ARE SUBJECT TO GOVERNMENTAL SPENDING LIMITS, PROVIDING A REFUND BY INCOME TAX CREDIT OF EXCESS REVENUES UP TO ONE HUNDRED MILLION DOLLARS, ALLOCATING EXCESS REVENUES FOR SCHOOL DISTRICT AND HIGHER EDUCATION CAPITAL CONSTRUCTION AND FOR TRANSPORTATION PURPOSES BASED ON SPECIFIED PERCENTAGES, AND SPECIFYING THE METHOD FOR DISTRIBUTION OF THOSE REVENUES FOR EACH SUCH PURPOSE.

Bill Summary

(Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments that may be subsequently adopted.)

Defines "excess revenues" as the amount of state revenues that is in excess of the state fiscal year spending limitation for that fiscal year prescribed by section 20 of article X of the state constitution.

Requires that the lesser of the total amount of excess revenues for any given fiscal year or $100 million be refunded through a state income tax credit with the amount of the credit depending on the taxpayer's federal adjusted gross income. Requires a transfer from the general fund of an amount equal to the excess revenues not required to be refunded for the 1997­98 fiscal year and the 4 succeeding fiscal years. Specifies that for fiscal years 1997­98 through 2001­02, 40% of the excess revenues retained shall be transferred to the school district capital construction fund, 40% of the excess revenues shall be transferred for state and local transportation purposes, and 20% of the excess revenues shall be transferred to the higher education capital construction account of the capital construction fund. Specifies that such transfers are not appropriations that are subject to state spending limits.

Creates the school district capital construction fund consisting of a portion of the revenues transferred from the general fund. Requires the department of education to determine the amount of assistance to be provided to a school district. Authorizes the general assembly to create the formula for calculating the amount of such assistance by a certain date. Directs the state board of education to create the formula in the event the general assembly does not by a specific date.

Creates the higher education capital construction account within the capital construction fund. Specifies that moneys transferred to that account shall be appropriated only for capital construction projects of state­supported institutions of higher education.

Specifies that revenues transferred for transportation purposes shall be allocated between the state highway fund, counties, and cities and towns pursuant to a specified percentage. Requires that revenues that are allocated to the state highway fund be expended for state transportation projects, as prioritized by the department of transportation.

Amends the statutory provisions regarding the state sales tax refund of excess revenues for the 1996­97 fiscal year through a state income tax credit to make such provisions applicable to the refund of any excess state revenues for fiscal years 1997­98 through 2001­02.


Be it enacted by the General Assembly of the State of Colorado:

SECTION 1.  Part 2 of article 75 of title 24, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SECTION to read:

24­75­216.  Excess revenues ­ refund ­ transfers. (1)  FOR PURPOSES OF THIS SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES, "EXCESS REVENUES" MEANS THE AMOUNT OF STATE REVENUES FOR A PARTICULAR STATE FISCAL YEAR FROM SOURCES NOT EXCLUDED FROM STATE FISCAL YEAR SPENDING THAT IS IN EXCESS OF THE STATE FISCAL YEAR SPENDING LIMITATION FOR THAT FISCAL YEAR PRESCRIBED BY SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION.

(2)  EXCESS REVENUES FOR THE 1997­98 FISCAL YEAR AND FOR THE SUCCEEDING FOUR FISCAL YEARS SHALL BE ALLOCATED AS FOLLOWS:

(a)  AN AMOUNT EQUAL TO THE TOTAL OF ALL EXCESS REVENUES FOR A GIVEN FISCAL YEAR OR ONE HUNDRED MILLION DOLLARS, WHICHEVER IS LESS, SHALL BE REFUNDED IN THE NEXT FISCAL YEAR PURSUANT TO SECTION 39­22­120, C.R.S.

(b)  AN AMOUNT EQUAL TO THE AMOUNT OF EXCESS REVENUES FOR A GIVEN FISCAL YEAR THAT IS NOT REQUIRED TO BE REFUNDED PURSUANT TO PARAGRAPH (a) OF THIS SUBSECTION (2) SHALL BE TRANSFERRED FROM THE GENERAL FUND AS PROVIDED IN SUBSECTION (3) OF THIS SECTION.

(3) (a)  THE STATE CONTROLLER AND STATE AUDITOR SHALL JOINTLY NOTIFY THE STATE TREASURER OF THE AMOUNT OF ANY EXCESS REVENUES FOR A GIVEN FISCAL YEAR THAT IS NOT REQUIRED TO BE REFUNDED PURSUANT TO SUBSECTION (2) OF THIS SECTION NO LATER THAN TEN DAYS PRIOR TO THE DATE OF ANY TRANSFER REQUIRED BY THIS SECTION.

(b)  NO TRANSFER SHALL BE REQUIRED UNDER THIS SUBSECTION (3) IF THERE ARE NO EXCESS REVENUES THAT ARE NOT REQUIRED TO BE REFUNDED PURSUANT TO SUBSECTION (2) OF THIS SECTION FOR THE FISCAL YEAR PRECEDING SUCH TRANSFER.

(c)  ON JANUARY 31, 1999, THE STATE TREASURER SHALL MAKE THE FOLLOWING TRANSFERS FROM THE GENERAL FUND IF THERE IS AN AMOUNT OF EXCESS REVENUES FOR THE 1997­98 FISCAL YEAR THAT IS NOT REQUIRED TO BE REFUNDED PURSUANT TO SUBSECTION (2) OF THIS SECTION:

(I)  AN AMOUNT EQUAL TO FORTY PERCENT OF THE EXCESS REVENUES FOR THE 1997­98 FISCAL YEAR THAT ARE NOT REQUIRED TO BE REFUNDED SHALL BE TRANSFERRED TO THE SCHOOL DISTRICT CAPITAL CONSTRUCTION FUND CREATED IN SECTION 22­2­122, C.R.S.

(II)  AN AMOUNT EQUAL TO TWENTY PERCENT OF THE EXCESS REVENUES FOR THE 1997­98 FISCAL YEAR THAT ARE NOT REQUIRED TO BE REFUNDED SHALL BE TRANSFERRED TO THE HIGHER EDUCATION CAPITAL CONSTRUCTION ACCOUNT OF THE CAPITAL CONSTRUCTION FUND CREATED IN SECTION 24­75­302 (3.5).

(III)  AN AMOUNT EQUAL TO FORTY PERCENT OF THE EXCESS REVENUES FOR THE 1997­98 FISCAL YEAR THAT ARE NOT REQUIRED TO BE REFUNDED SHALL BE TRANSFERRED FROM THE GENERAL FUND FOR STATE AND LOCAL TRANSPORTATION PURPOSES PURSUANT TO SECTION 43­4­205.5, C.R.S.

(d)  ON NOVEMBER 1, 1999, NOVEMBER 1, 2000, NOVEMBER 1, 2001, AND NOVEMBER 1, 2002, THE STATE TREASURER SHALL MAKE THE FOLLOWING TRANSFERS FROM THE GENERAL FUND IF THERE IS AN AMOUNT OF EXCESS REVENUES FOR THE PRECEDING FISCAL YEAR THAT IS NOT REQUIRED TO BE REFUNDED PURSUANT TO SUBSECTION (2) OF THIS SECTION:

(I)  AN AMOUNT EQUAL TO FORTY PERCENT OF THE EXCESS REVENUES FOR THE PRECEDING FISCAL YEAR SHALL BE TRANSFERRED TO THE SCHOOL DISTRICT CAPITAL CONSTRUCTION FUND CREATED IN SECTION 22­2­122, C.R.S.;

(II)  AN AMOUNT EQUAL TO TWENTY PERCENT OF THE EXCESS REVENUES FOR THE PRECEDING FISCAL YEAR THAT ARE NOT REQUIRED TO BE REFUNDED SHALL BE TRANSFERRED TO THE HIGHER EDUCATION CAPITAL CONSTRUCTION ACCOUNT OF THE CAPITAL CONSTRUCTION FUND CREATED IN SECTION 24­75­302 (3.5).

(III)  AN AMOUNT EQUAL TO FORTY PERCENT OF THE EXCESS REVENUES FOR THE PRECEDING FISCAL YEAR THAT ARE NOT REQUIRED TO BE REFUNDED SHALL BE TRANSFERRED FROM THE GENERAL FUND FOR STATE AND LOCAL TRANSPORTATION PURPOSES PURSUANT TO SECTION 43­4­205.5, C.R.S.

(4)  ANY TRANSFER FROM THE GENERAL FUND MADE PURSUANT TO THIS SECTION SHALL NOT BE DEEMED TO BE AN APPROPRIATION SUBJECT TO THE LIMITATIONS OF SECTION 24­75­201.1.

(5)  REVENUES TRANSFERRED PURSUANT TO THIS SECTION SHALL CONSTITUTE A VOTER­APPROVED REVENUE CHANGE, AND SUCH REVENUES SHALL NOT BE INCLUDED IN EITHER STATE OR LOCAL GOVERNMENT FISCAL YEAR SPENDING FOR PURPOSES OF SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION AND SECTION 24­77­102 (17).

SECTION 2.  Part 1 of article 2 of title 22, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SECTION to read:

22­2­122.  School district capital construction fund ­ creation ­ formula. (1)  THERE IS HEREBY ESTABLISHED IN THE STATE TREASURY THE SCHOOL DISTRICT CAPITAL CONSTRUCTION FUND, REFERRED TO IN THIS SECTION AS THE "FUND". THE FUND SHALL CONSIST OF THE MONEYS TRANSFERRED THERETO PURSUANT TO SECTION 24­75­216, C.R.S., AND SUCH ADDITIONAL MONEYS AS MAY BE MADE AVAILABLE BY THE GENERAL ASSEMBLY. ALL INTEREST DERIVED FROM THE INVESTMENT OF MONEYS IN THE FUND SHALL BE CREDITED TO THE FUND. THE GENERAL ASSEMBLY SHALL APPROPRIATE THE MONEYS CREDITED TO THE FUND TO THE DEPARTMENT OF EDUCATION IN THE ANNUAL GENERAL APPROPRIATION BILL FOR THE 1999­2000 FISCAL YEAR AND FOR FOUR SUCCEEDING FISCAL YEARS THEREAFTER.

(2)  THE DEPARTMENT OF EDUCATION, BASED ON THE FORMULA DESCRIBED IN SUBSECTION (3) OF THIS SECTION, SHALL DETERMINE THE AMOUNT OF ASSISTANCE TO BE PROVIDED TO EACH SCHOOL DISTRICT FOR CAPITAL CONSTRUCTION PROJECTS. THE DEPARTMENT OF EDUCATION, BY ORDER UPON THE STATE TREASURER, SHALL DIRECT PAYMENT FROM THE SCHOOL DISTRICT CAPITAL CONSTRUCTION FUND OF SUCH AMOUNT DIRECTLY TO THE TREASURER OF EACH SCHOOL DISTRICT OR, IN ACCORDANCE WITH WRITTEN INSTRUCTIONS FROM THE DISTRICT, DIRECTLY TO AN ACCOUNT DESIGNATED BY THE DISTRICT.

(3) (a)  A FORMULA TO DETERMINE THE AMOUNT OF ASSISTANCE TO BE PROVIDED TO EACH SCHOOL DISTRICT FOR CAPITAL CONSTRUCTION PROJECTS MAY BE ESTABLISHED BY LEGISLATION ENACTED BY THE GENERAL ASSEMBLY NO LATER THAN JULY 1, 1999.

(b)  IN THE EVENT THE GENERAL ASSEMBLY DOES NOT ESTABLISH A FORMULA BY SUCH DATE, THE STATE BOARD OF EDUCATION SHALL PROMULGATE RULES NO LATER THAN NOVEMBER 1, 1999, CREATING A FORMULA TO DETERMINE THE AMOUNT OF ASSISTANCE TO BE PROVIDED TO EACH SCHOOL DISTRICT FOR CAPITAL CONSTRUCTION PROJECTS.

(4)  AS USED IN THIS SECTION, "CAPITAL CONSTRUCTION" SHALL HAVE THE MEANING SET FORTH IN SECTION 24­75­301 (1), C.R.S.

SECTION 3.  24­75­302, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SUBSECTION to read:

24­75­302.  Capital construction fund ­ capital assessment fees ­ calculation. (3.5)  THERE IS HEREBY CREATED A SPECIAL ACCOUNT WITHIN THE CAPITAL CONSTRUCTION FUND ESTABLISHED PURSUANT TO SUBSECTION (1) OF THIS SECTION TO BE KNOWN AS THE HIGHER EDUCATION CAPITAL CONSTRUCTION ACCOUNT. THE ACCOUNT SHALL CONSIST OF SUCH MONEYS AS ARE ALLOCATED THERETO PURSUANT TO SECTION 24­75­216 (3). MONEYS TRANSFERRED PURSUANT TO SECTION 24­75­216 (3) ARE IN ADDITION TO ANY MONEYS TRANSFERRED TO THE CAPITAL CONSTRUCTION FUND PURSUANT TO SUBSECTION (2) OF THIS SECTION. ALL MONEYS UNEXPENDED OR UNENCUMBERED IN ANY FISCAL YEAR SHALL REMAIN IN THE ACCOUNT. ALL INTEREST EARNED FROM THE INVESTMENT OF MONEYS IN SAID ACCOUNT SHALL REMAIN THEREIN AND SHALL NOT REVERT TO THE GENERAL FUND. MONEYS TRANSFERRED TO THE HIGHER EDUCATION CAPITAL CONSTRUCTION ACCOUNT SHALL BE APPROPRIATED ONLY FOR CAPITAL CONSTRUCTION PROJECTS OF STATE­SUPPORTED INSTITUTIONS OF HIGHER EDUCATION.

SECTION 4.  43­4­205, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SECTION to read:

43­4­205.5.  Allocation of excess revenues ­ repeal. (1)  THE REVENUES TRANSFERRED PURSUANT TO SECTION 24­75­216 (3), C.R.S., SHALL BE ALLOCATED AS FOLLOWS:

(a)  SIXTY PERCENT OF SUCH REVENUE SHALL BE PAID TO THE STATE HIGHWAY FUND FOR ALLOCATION TO THE DEPARTMENT OF TRANSPORTATION AND SHALL BE EXPENDED AS PROVIDED IN SECTION 43­4­206 (3).

(b)  TWENTY­TWO PERCENT OF SUCH REVENUE SHALL BE PAID TO THE COUNTY TREASURERS OF THE RESPECTIVE COUNTIES, SUBJECT TO ANNUAL APPROPRIATION BY THE GENERAL ASSEMBLY, AND SHALL BE ALLOCATED AND EXPENDED AS PROVIDED IN SECTION 43­4­207.

(c)  EIGHTEEN PERCENT OF SUCH REVENUE SHALL BE PAID TO CITIES AND INCORPORATED TOWNS WITHIN THE LIMITS OF THE RESPECTIVE COUNTIES, SUBJECT TO ANNUAL APPROPRIATION BY THE GENERAL ASSEMBLY, AND SHALL BE ALLOCATED AND EXPENDED AS PROVIDED IN SECTION 43­4­208 (2).

(2)  THIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2003.

SECTION 5.  The introductory portion to 43­4­206 (1), Colorado Revised Statutes, is amended, and the said 43­4­206 is further amended BY THE ADDITION OF A NEW SUBSECTION, to read:

43­4­206.  State allocation ­ repeal. (1)  Except as otherwise provided in subsection SUBSECTIONS (2) AND (3) of this section, after the payments to the highway crossing protection fund required by law have been made and after paying the costs of the Colorado state patrol and such other costs of the department, exclusive of highway construction, highway improvements, or highway maintenance, as are appropriated by the general assembly, sixty­five percent of the balance of the highway users tax fund shall be paid to the state highway fund and shall be expended for the following purposes:

(3) (a)  NOTWITHSTANDING THE PROVISIONS OF SUBSECTION (1) OF THIS SECTION, THE REVENUES CREDITED TO THE STATE HIGHWAY FUND PURSUANT TO SECTION 43­4­205.5 (1) (a) SHALL BE EXPENDED BY THE DEPARTMENT OF TRANSPORTATION FOR STATE TRANSPORTATION PROJECTS, AS PRIORITIZED BY THE DEPARTMENT.

(b)  THIS SUBSECTION (3) IS REPEALED, EFFECTIVE JULY 1, 2003.

SECTION 6.  39­22­120 (1) (b), (1) (e), (1) (f), (1) (i), (2), (3), (4), and (5), Colorado Revised Statutes, are amended, and the said 39­22­120 is further amended BY THE ADDITION OF A NEW SUBSECTION, to read:

39­22­120.  Legislative declaration ­ state sales tax refund ­ credit against state income tax. (1)  The general assembly hereby finds and declares that:

(b)  During the 1996­97 fiscal year, state revenues from sources not excluded from state fiscal year spending exceeded the limitation on state fiscal year spending;

(e)  Since IF voters have not approved a revenue change, the state is required to refund during the 1997­98 ANY GIVEN fiscal year the revenues in excess of the state fiscal year spending limitation for the 1996­97 PRECEDING fiscal year;

(f)  It is within the legislative prerogative of the general assembly to enact legislation to implement the refund of state excess revenues for the 1996­97 fiscal year FISCAL YEARS 1997­98 THROUGH 2001­02 in compliance with section 20 of article X of the state constitution IF THERE ARE STATE EXCESS REVENUES FOR ANY ONE OF THESE FISCAL YEARS;

(i)  It is the considered judgment of the general assembly that:

(I)  The State excess revenues, IF ANY, for the 1996­97 fiscal year are FISCAL YEARS 1997­98 THROUGH 2001­02 WILL BE derived from a wide variety of state taxes and fees ranging from state sales tax to severance and transportation taxes to health service fees to court fines to permit and license fees and to higher education fees and should, therefore, be returned to as large a group of Colorado residents as is identifiable and economically feasible;

(II)  It is not feasible to make proportional refunds of state excess revenues, for the 1996­97 fiscal year IF ANY, FOR FISCAL YEARS 1997­98 THROUGH 2001­02 due to the impossibility of identifying or returning prior payments;

(III)  It is reasonable and fair to refund state excess revenues, for the 1996­97 fiscal year IF ANY, FOR FISCAL YEARS 1997­98 THROUGH 2001­02 to a large group of individuals as a refund of state sales tax revenues since more Coloradans pay state sales tax than any other state tax;

(IV)  The state collected over one billion three million dollars in state sales tax revenues during the 1996­97 fiscal year from which the refund of state excess revenues may be made;

(V)  Refunding state excess revenues, for the 1996­97 fiscal year IF ANY, FOR FISCAL YEARS 1997­98 THROUGH 2001­02 through the state income tax system in the manner set forth in this section is a reasonable method for refunding such excess revenues; and

(VI)  The most cost­effective and expeditious method of refunding state excess revenues, for the 1996­97 fiscal year IF ANY, FOR FISCAL YEARS 1997­98 THROUGH 2001­02 is through the state income tax system but that a credit against state income tax is merely a mechanism for refunding said state excess revenues to a broad spectrum of persons.

(2)  As used in this section, "qualified individual" means:

(a)  A natural person who is domiciled in this state for the entire taxable year commencing on January 1 1997, and ending December 31 1997, OF SUCH TAX YEAR and who is required to file a Colorado individual income tax return for that tax year pursuant to section 39­22­601 (1) (a) or who files a Colorado individual income tax return to claim a refund of Colorado income tax withheld from wages or estimated Colorado income tax paid for that tax year; or

(b)  Any natural person who is domiciled in this state for the entire taxable year commencing on January 1 1997, and ending December 31 1997, OF SUCH TAX YEAR and who is at least eighteen years of age as of December 31 1996, OF THE TAXABLE YEAR PRECEDING SUCH TAXABLE YEAR.

(3)  With respect to the taxable year commencing on January 1, 1997 1998, and ending December 31, 1997 1998, AND EACH SUBSEQUENT TAXABLE YEAR THROUGH THE TAXABLE YEAR COMMENCING ON JANUARY 1, 2002, AND ENDING DECEMBER 31, 2002, there shall be allowed to each qualified individual a state sales tax refund credit in an amount specified in subsection (4) of this section with respect to the income taxes imposed by this article IF THERE WERE EXCESS STATE REVENUES FOR THE FISCAL YEAR ENDING IN THE IMMEDIATELY PRECEDING TAXABLE YEAR.

(4)  The amount of the credit allowed under this section shall be as follows:

(a)  For a qualified individual filing a single return, a married filing separate return, or as a head of a household for the 1997 tax year:

(I)  If the qualified individual's federal adjusted gross income for the 1997 tax year is less than or equal to fifteen thousand dollars, the credit shall be in the AN amount of thirty­seven dollars EQUAL TO THE AMOUNT OF EXCESS REVENUES REQUIRED TO BE REFUNDED PURSUANT TO SECTION 24­75­216 (2) (a), C.R.S., MULTIPLIED BY TWENTY PERCENT, DIVIDED BY THE ESTIMATED NUMBER OF SAID QUALIFIED INDIVIDUALS EXPECTED TO CLAIM THE CREDIT FOR THAT TAXABLE YEAR;

(II)  If the qualified individual's federal adjusted gross income for the 1997 tax year is greater than fifteen thousand dollars but not more than one hundred thousand dollars, the credit shall be in the AN amount of sixty dollars EQUAL TO THE AMOUNT OF EXCESS REVENUES REQUIRED TO BE REFUNDED PURSUANT TO SECTION 24­75­216 (2) (a), C.R.S., MULTIPLIED BY SEVENTY PERCENT, DIVIDED BY THE ESTIMATED NUMBER OF SAID QUALIFIED INDIVIDUALS EXPECTED TO CLAIM THE CREDIT FOR THAT TAXABLE YEAR;

(III)  If the qualified individual's federal adjusted gross income for the 1997 tax year is more than one hundred thousand dollars, the credit shall be in the AN amount of eighty dollars EQUAL TO THE AMOUNT OF EXCESS REVENUES REQUIRED TO BE REFUNDED PURSUANT TO SECTION 24­75­216 (2) (a), C.R.S., MULTIPLIED BY TEN PERCENT, DIVIDED BY THE ESTIMATED NUMBER OF SAID QUALIFIED INDIVIDUALS EXPECTED TO CLAIM THE CREDIT FOR THAT TAXABLE YEAR.

(b)  For two qualified individuals filing a joint return or a qualified individual filing as a surviving spouse for the 1997 tax year:

(I)  If the qualified individuals' aggregate federal adjusted gross income is less than or equal to fifteen thousand dollars, the credit shall be in the amount of seventy­four dollars EQUAL TO THE AMOUNT OF THE REFUND ALLOWED UNDER SUBPARAGRAPH (I) OF PARAGRAPH (a) OF THIS SUBSECTION (4) MULTIPLIED BY TWO;

(II)  If the qualified individuals' aggregate federal adjusted gross income is greater than fifteen thousand dollars but not more than one hundred thousand dollars, the credit shall be in the amount of one hundred twenty dollars EQUAL TO THE AMOUNT OF THE REFUND ALLOWED UNDER SUBPARAGRAPH (II) OF PARAGRAPH (a) OF THIS SUBSECTION (4) MULTIPLIED BY TWO;

(III)  If the qualified individuals' aggregate federal adjusted gross income is greater than one hundred thousand dollars, the credit shall be in the amount of one hundred sixty dollars EQUAL TO THE AMOUNT OF THE REFUND ALLOWED UNDER SUBPARAGRAPH (III) OF PARAGRAPH (a) OF THIS SUBSECTION (4) MULTIPLIED BY TWO.

(5) (a)  Any credit allowed pursuant to this section shall be claimed by a qualified individual as defined in paragraph (a) of subsection (2) of this section by timely filing a 1997 AN income tax return with the department of revenue FOR A TAXABLE YEAR FOR WHICH THE CREDIT IS ALLOWED in compliance with the provisions of this article. The department of revenue shall not allow said credit claimed on any 1997 income tax return not filed in compliance with the provisions of this article. In no event shall the credit claimed by a qualified individual as defined in paragraph (a) of subsection (2) of this section on any 1997 income tax return be allowed if said return is filed after October 15 1998, OF THE CALENDAR YEAR FOLLOWING THE TAX YEAR FOR WHICH THE CREDIT IS BEING CLAIMED.

(b)  Any credit allowed pursuant to this section shall be claimed by a qualified individual as defined in paragraph (b) of subsection (2) of this section by filing a 1997 AN income tax return FOR A TAXABLE YEAR FOR WHICH THE CREDIT IS ALLOWED with the department of revenue no later than April 15 1998, OF THE CALENDAR YEAR FOLLOWING THE TAX YEAR FOR WHICH THE CREDIT IS BEING CLAIMED. The department of revenue shall not allow said credit claimed by a qualified individual as defined in paragraph (b) of subsection (2) of this section on any 1997 income tax return filed with the department of revenue after April 15 1998, OF THE CALENDAR YEAR FOLLOWING THE TAX YEAR FOR WHICH THE CREDIT IS BEING CLAIMED.

(8)  NO LATER THAN OCTOBER 1 OF ANY GIVEN CALENDAR YEAR DURING WHICH A FISCAL YEAR ENDED FOR WHICH THERE ARE EXCESS REVENUES THAT ARE REQUIRED TO BE REFUNDED PURSUANT TO SECTION 24­75­216 (2) (a):

(a)  THE EXECUTIVE DIRECTOR SHALL CALCULATE THE AMOUNT OF THE CREDIT TO BE ALLOWED PURSUANT TO SUBPARAGRAPHS (I), (II), AND (III) OF PARAGRAPH (a) OF SUBSECTION (4) OF THIS SECTION AND PURSUANT TO SUBPARAGRAPHS (I), (II), AND (III) OF PARAGRAPH (b) OF SUBSECTION (4) OF THIS SECTION FOR THE TAXABLE YEAR COMMENCING AFTER SAID FISCAL YEAR. THE AMOUNT OF THE CREDIT SHALL BE CALCULATED IN ACCORDANCE WITH THE PROVISIONS OF SUBSECTION (4) OF THIS SECTION, SHALL BE PUBLISHED IN RULES PROMULGATED BY THE EXECUTIVE DIRECTOR IN ACCORDANCE WITH ARTICLE 4 OF TITLE 24, C.R.S., AND SHALL BE INCLUDED IN INCOME TAX FORMS FOR THAT TAXABLE YEAR.

(b)  NOTWITHSTANDING ANY PROVISION OF THIS SECTION TO THE CONTRARY, FOR THE TAXABLE YEAR COMMENCING ON JANUARY 1, 1999, AND ENDING DECEMBER 31, 1999, AND FOR EACH SUBSEQUENT TAXABLE YEAR THROUGH THE TAXABLE YEAR COMMENCING ON JANUARY 1, 2002, AND ENDING DECEMBER 31, 2002, THE EXECUTIVE DIRECTOR SHALL ADJUST THE AMOUNTS OF FEDERAL ADJUSTED GROSS INCOME OF QUALIFIED INDIVIDUALS, AS SPECIFIED IN SUBSECTION (4) OF THIS SECTION, TO REFLECT THE PERCENTAGE CHANGE IN THE CONSUMER PRICE INDEX FOR THE DENVER­BOULDER CONSOLIDATED METROPOLITAN STATISTICAL AREA FOR ALL URBAN CONSUMERS, ALL GOODS, AS PUBLISHED BY THE UNITED STATES DEPARTMENT OF LABOR, BUREAU OF LABOR STATISTICS, OR ITS SUCCESSOR, FOR SAID FISCAL YEAR. THE AMOUNTS OF FEDERAL ADJUSTED GROSS INCOME, AS ADJUSTED PURSUANT TO THIS PARAGRAPH (b), SHALL BE PUBLISHED IN RULES PROMULGATED BY THE EXECUTIVE DIRECTOR IN ACCORDANCE WITH ARTICLE 4 OF TITLE 24, C.R.S., AND SHALL BE INCLUDED IN INCOME TAX FORMS FOR THAT TAXABLE YEAR.

SECTION 7.  Refer to people under referendum.  This act shall be submitted to a vote of the registered electors of the state of Colorado at the next general election, for their approval or rejection, under the provisions of the referendum as provided for in section 1 of article V, and article 40 of title 1, Colorado Revised Statutes. Each elector voting at said election and desirous of voting for or against said act shall cast a vote as provided by law either "Yes" or "No" on the proposition: "FOR THE PURPOSE OF PROVIDING AN INCOME TAX CREDIT, FUNDS FOR SCHOOL DISTRICT AND HIGHER EDUCATION CAPITAL CONSTRUCTION, AND FUNDS FOR TRANSPORTATION PURPOSES, SHALL THE STATE OF COLORADO BE PERMITTED TO RETAIN THAT PORTION OF THE REVENUES IN EXCESS OF THE CONSTITUTIONAL LIMITATION ON STATE FISCAL YEAR SPENDING FOR THE 1997­98 FISCAL YEAR AND FOR EACH OF THE SUCCEEDING FOUR FISCAL YEARS THAT EXCEEDS ONE HUNDRED MILLION DOLLARS, NOTWITHSTANDING ANY RESTRICTION ON FISCAL YEAR SPENDING, INCLUDING WITHOUT LIMITATION THE RESTRICTIONS OF SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION, AND, IN CONNECTION THEREWITH, TO SPECIFY THAT SUCH TRANSFERS ARE NOT SUBJECT TO ANY STATE CONSTITUTIONAL OR STATUTORY RESTRICTION OR LIMITATION ON FISCAL YEAR SPENDING OR APPROPRIATIONS, TO PROVIDE A REFUND BY INCOME TAX CREDIT OF EXCESS REVENUES UP TO ONE HUNDRED MILLION DOLLARS, TO ALLOCATE EXCESS REVENUES EXCEEDING ONE HUNDRED MILLION DOLLARS FOR SCHOOL DISTRICT AND HIGHER EDUCATION CAPITAL CONSTRUCTION AND FOR TRANSPORTATION PURPOSES BASED ON SPECIFIED PERCENTAGES AND TO SPECIFY THE METHOD FOR DISTRIBUTION OF THOSE REVENUES FOR EACH SUCH PURPOSE?" The votes cast for the adoption or rejection of said act shall be canvassed and the result determined in the manner provided by law for the canvassing of votes for representatives in Congress.