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Second Regular Session
Sixty-first General Assembly
LLS NO. 980568.01 JAG
HOUSE BILL 981266
STATE OF COLORADO
BY REPRESENTATIVES Taylor and McElhany;
also SENATOR Coffman.
A BILL FOR AN ACT
CONCERNING AN EXCLUSION OF CERTAIN INCOME FROM COLORADO
TAXABLE INCOME, AND, IN CONNECTION THEREWITH, EXCLUDING CERTAIN
INTEREST INCOME, DIVIDEND INCOME, AND NET CAPITAL GAINS FROM THE
INCOME TAX IMPOSED ON INDIVIDUALS, ESTATES, AND TRUSTS.
(Note: This summary applies to this bill as introduced
and does not necessarily reflect any amendments that may be subsequently
Subject to certain limitations, provides that up
to $6,000 of aggregate interest, dividend, and capital gains income
per taxable year is excluded from the federal taxable income of
individuals, estates, and trusts for state income tax purposes.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. 3922104 (4), Colorado Revised Statutes, 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:
(j) FOR INCOME TAX YEARS COMMENCING ON AND AFTER JANUARY 1, 1999, AN AMOUNT EQUAL TO THE AGGREGATE OF ANY INTEREST INCOME, DIVIDEND INCOME, AND NET CAPITAL GAINS TO THE EXTENT INCLUDED IN FEDERAL TAXABLE INCOME AND NOT OTHERWISE SUBTRACTED FROM FEDERAL TAXABLE INCOME PURSUANT TO THIS SUBSECTION (4) AND SECTION 3922518, BUT NOT TO EXCEED TWO THOUSAND THREE HUNDRED DOLLARS IN ANY TAXABLE YEAR. IN THE CASE OF TWO INDIVIDUALS FILING A JOINT RETURN OR A QUALIFIED INDIVIDUAL FILING AS A SURVIVING SPOUSE, THE AMOUNT SUBTRACTED FROM FEDERAL TAXABLE INCOME SHALL NOT EXCEED FOUR THOUSAND SIX HUNDRED DOLLARS. FOR PURPOSES OF THIS PARAGRAPH (j), "NET CAPITAL GAINS" MEANS NET CAPITAL GAIN AS DEFINED IN SECTION 1222 (11) OF THE INTERNAL REVENUE CODE.
SECTION 2. 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.