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Second Regular Session

Sixty-first General Assembly

LLS NO. 98­0716.01 GWF HOUSE BILL 98­1315

STATE OF COLORADO

BY REPRESENTATIVES Miller and G. Berry.

FINANCE

A BILL FOR AN ACT

CONCERNING THE PROMOTION OF TOURIST­RELATED ACTIVITIES IN COLORADO, AND, IN CONNECTION THEREWITH, TRANSFERRING A PORTION OF STATE SALES AND USE TAX REVENUES TO THE TOURISM PROMOTION FUND AND REFUNDING A PORTION OF INCREASED STATE SALES AND USE TAX REVENUES TO QUALIFIED INDIVIDUALS.

Bill Summary

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

Transfers a specified amount of sales and use tax revenues to the Colorado tourism promotion fund for the 1998­99 fiscal year.

Commencing with the 1999­2000 fiscal year, and in each fiscal year thereafter, allocates a specified amount of moneys, adjusted for inflation, from any increase in sales and use tax receipts derived from tourism in the state to the Colorado tourism promotion fund and refunds the remainder of such increase in receipts to qualified individuals.

Provides specific exceptions to transferring moneys to the Colorado tourism promotion fund and refunding moneys to qualified individuals. Provides such refunds by means of a credit claimed on state individual income tax forms. Defines who qualifies to receive the refund. Requires the executive director of the department of revenue to annually calculate the amount of the refund based upon the amount to be refunded and the estimated number of individuals who will claim the refund. Requires the executive director to adjust future refund amounts to ensure that the amounts required to be refunded are refunded as soon as practicable.

If the amount of the credit exceeds the claimant's income tax liability, prohibits the carrying forward of the unused credit to subsequent years' income tax liability and refunds the amount of the unused credit. Subjects ineligible individuals who claim the credit to certain criminal penalties.


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

SECTION 1.  24­32­1306 (1) (a) and (2), Colorado Revised Statutes, are amended to read:

24­32­1306.  Colorado tourism promotion fund ­ creation ­ nature of fund. (1)  There is hereby created a fund to be known as the Colorado tourism promotion fund, which shall be administered by the board and which shall consist of:

(a)  All moneys which THAT may be transferred thereto in accordance with section 39­26.1­111 39­26­123 (2) and (3), C.R.S.; and

(2)  The moneys in the fund shall be annually appropriated by the general assembly for the purposes of this part 13. and for expenses of the department of revenue for administration of the sales tax imposed by article 26.1 of title 39, C.R.S. Any moneys not appropriated shall remain in the fund and shall not be transferred to or revert to the general fund of the state at the end of any fiscal year. Any interest earned on the investment or deposit of moneys in the fund shall also remain in the fund and shall not be credited to the general fund of the state. Contributions of money, property, or services may be received from any state or state agency, county, municipality, federal agency, person, or corporation for use in carrying out the purposes of this part 13.

SECTION 2.  39­26­123 (1), (2) (a), and (2) (c), Colorado Revised Statutes, are amended, and the said 39­26­123 (2) is further amended BY THE ADDITION OF A NEW PARAGRAPH, to read:

39­26­123.  Receipts ­ disposition ­ repeal. (1)  Eighty­five percent of all receipts collected under the provisions of this article shall be credited to the old age pension fund. Before July 1, 1997, and for the fiscal year commencing July 1, 2002, and each year thereafter, the remaining fifteen percent shall be credited to the general fund, and the general assembly shall make appropriations therefrom for the expenses of the administration of this article.

(2) (a) (I) (A)  Eighty­five percent of all receipts collected under the provisions of this article shall be credited to the old age pension fund. For the fiscal year commencing July 1, 1997, and for four succeeding fiscal years thereafter, the GENERAL ASSEMBLY SHALL MAKE APPROPRIATIONS FOR THE EXPENSES OF THE ADMINISTRATION OF THIS ARTICLE FROM THE remaining fifteen percent, AND THEREAFTER ANY REMAINING RECEIPTS shall be allocated between and credited to the general fund and the highway users tax fund, as a portion of the sales and use taxes attributable to sales or use of vehicles and related items, as follows: Ten percent of net revenue from sales and use tax SHALL BE CREDITED to the highway users tax fund, and five percent thereof to the general fund SHALL BE DISTRIBUTED AS PROVIDED IN PARAGRAPH (d.5) OF THIS SUBSECTION (2).

(B)  For purposes of this subparagraph (I), "net revenue" means the gross amount of sales and use tax receipts collected under the provisions of this article, less three and one­third percent of such amount retained by vendors for the collection and remittance of such tax pursuant to section 39­26­105 (1) (a).

(II)  In any fiscal year, if the revenue estimate prepared in accordance with section 24­75­201.3 (2), C.R.S., indicates that, after making required expenditures, making the allocation to the highway users tax fund in accordance with sub­subparagraph (A) of subparagraph (I) of this paragraph (a), MAKING THE ALLOCATION IN ACCORDANCE WITH PARAGRAPH (d.5) OF THIS SUBSECTION (2) TO THE COLORADO TOURISM PROMOTION FUND AND TO QUALIFIED TAXPAYERS, and maintaining the statutorily required reserve, there will not be sufficient general fund revenue to fund general fund expenditures up to the statutory appropriation limit, the governor shall DIRECT THE STATE TREASURER TO REDUCE THE AMOUNT OF SALES AND USE TAXES REFUNDED TO QUALIFIED TAXPAYERS AND CREDITED TO THE COLORADO TOURISM PROMOTION FUND AS PROVIDED IN PARAGRAPH (d.5) OF THIS SUBSECTION (2) AS NECESSARY TO PROVIDE THE ADDITIONAL GENERAL FUND REVENUE TO FULLY FUND THE GENERAL FUND EXPENDITURES UP TO THE STATUTORY APPROPRIATION LIMIT. IF, AFTER REDUCING THE AMOUNT REFUNDED TO TAXPAYERS AND CREDITED TO THE COLORADO TOURISM PROMOTION FUND PURSUANT TO PARAGRAPH (d.5) OF THIS SUBSECTION (2) SO THAT ALL OF THE REVENUES ALLOCATED PURSUANT TO SUCH PARAGRAPH (d.5) ARE CREDITED TO THE GENERAL FUND, THERE STILL WILL NOT BE SUFFICIENT GENERAL FUND REVENUE TO FUND GENERAL FUND EXPENDITURES UP TO THE STATUTORY APPROPRIATION LIMIT, THE GOVERNOR SHALL THEN direct the state treasurer to reduce the amount of sales and use taxes credited to the highway users tax fund as necessary to provide the additional general fund revenue to fully fund the general fund expenditures up to the statutory appropriation limit.

(III)  In any fiscal year, if the revenue estimate prepared in accordance with section 24­75­201.3 (2), C.R.S., indicates that, after making required expenditures, making the allocation to the highway users tax fund in accordance with sub­subparagraph (A) of subparagraph (I) of this paragraph (a), MAKING THE ALLOCATION IN ACCORDANCE WITH PARAGRAPH (d.5) OF THIS SUBSECTION (2), and maintaining sufficient general fund revenues to fund general fund expenditures up to the statutory appropriation limit and the statutorily required reserve, there will not be excess revenues, including the total of all revenues required to be transferred to the capital construction fund, available for appropriation during the next fiscal year for capital construction projects, including correctional facilities, in an amount equal to one hundred forty million dollars, the governor shall DIRECT THE STATE TREASURER TO REDUCE THE AMOUNT OF SALES AND USE TAXES REFUNDED TO QUALIFIED TAXPAYERS AND CREDITED TO THE COLORADO TOURISM PROMOTION FUND AS PROVIDED IN PARAGRAPH (d.5) OF THIS SUBSECTION (2) AS NECESSARY TO PROVIDE THE ADDITIONAL GENERAL FUND REVENUE TO FULLY FUND SUCH CAPITAL CONSTRUCTION PROJECTS. IF, AFTER REDUCING THE AMOUNT REFUNDED TO QUALIFIED TAXPAYERS AND CREDITED TO THE COLORADO TOURISM PROMOTION FUND PURSUANT TO PARAGRAPH (d.5) OF THIS SUBSECTION (2) SO THAT ALL OF THE REVENUES ALLOCATED PURSUANT TO SUCH PARAGRAPH (d.5) ARE CREDITED TO THE GENERAL FUND, THERE STILL WILL NOT BE EXCESS REVENUES, INCLUDING THE TOTAL OF ALL REVENUES REQUIRED TO BE TRANSFERRED TO THE CAPITAL CONSTRUCTION FUND, AVAILABLE FOR APPROPRIATION DURING THE NEXT FISCAL YEAR FOR CAPITAL CONSTRUCTION PROJECTS, INCLUDING CORRECTIONAL FACILITIES, IN AN AMOUNT EQUAL TO ONE HUNDRED FORTY MILLION DOLLARS, THE GOVERNOR SHALL THEN direct the state treasurer to reduce the amount of sales and use taxes credited to the highway users tax fund by an amount equal to one­half of the difference between one hundred forty million dollars and the amount of excess revenues available for appropriation during the next fiscal year for capital construction projects after making required expenditures and maintaining sufficient general fund revenues to fund general fund expenditures up to the statutory appropriation limit and the statutorily required reserve.

(c)  If the general assembly implements a tax policy change resulting in a significant reduction of general fund revenues, the general assembly shall:

(I)  Examine the conditions imposed on the revenues REFUNDED TO QUALIFIED TAXPAYERS AND CREDITED TO THE COLORADO TOURISM PROMOTION FUND AS PROVIDED IN PARAGRAPH (d.5) OF THIS SUBSECTION (2) AND REVENUES credited to the highway users tax fund in subparagraphs (II) and (III) of paragraph (a) of this subsection (2) and shall determine whether such conditions should be modified in light of any such change; and

(II)  Examine the amount of sales and use taxes REFUNDED TO QUALIFIED TAXPAYERS AND CREDITED TO THE COLORADO TOURISM PROMOTION FUND AS PROVIDED IN PARAGRAPH (d.5) OF THIS SUBSECTION (2) AND credited to the highway users tax fund pursuant to paragraph (a) of this subsection (2) and shall determine whether such amount should be modified in light of any such change.

(d.5) (I)  FOR THE FISCAL YEAR COMMENCING JULY 1, 1997, THE FIVE PERCENT OF NET REVENUES FROM SALES AND USE TAX TO BE ALLOCATED PURSUANT TO THIS PARAGRAPH (d.5) SHALL BE CREDITED TO THE GENERAL FUND.

(II)  FOR THE FISCAL YEAR COMMENCING JULY 1, 1998, OF THE FIVE PERCENT OF NET REVENUES FROM SALES AND USE TAX TO BE ALLOCATED PURSUANT TO THIS PARAGRAPH (d.5), THE STATE TREASURER SHALL CREDIT THE FIRST TWELVE MILLION DOLLARS OF SUCH REVENUES TO THE COLORADO TOURISM PROMOTION FUND CREATED IN SECTION 24­32­1306, C.R.S., AND SHALL CREDIT ANY REMAINING REVENUES TO THE GENERAL FUND.

(III) (A)  FOR THE FISCAL YEARS COMMENCING JULY 1, 1999, JULY 1, 2000, AND JULY 1, 2001, THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF REVENUE SHALL ANNUALLY CALCULATE THE AMOUNT OF ANY INCREASE IN STATE SALES AND USE TAX RECEIPTS DERIVED FROM THE RETAIL SALE AND USE OF TOURIST­RELATED GOODS AND SERVICES AS PROVIDED IN SUB­SUBPARAGRAPH (B) OF THIS SUBPARAGRAPH (III) AND THE STATE TREASURER SHALL DISTRIBUTE AN AMOUNT EQUAL TO ANY SUCH INCREASE AS PROVIDED IN SUB­SUBPARAGRAPH (C) OF THIS SUBPARAGRAPH (III). ANY REMAINING REVENUES OF THE FIVE PERCENT OF SALES AND USE TAX REVENUES, MINUS THE AMOUNT OF SUCH INCREASE, IF ANY, SHALL BE CREDITED TO THE GENERAL FUND.

(B)  FOR THE FISCAL YEARS COMMENCING JULY 1, 1999, JULY 1, 2000, AND JULY 1, 2001, THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF REVENUE SHALL CALCULATE THE AMOUNT OF STATE SALES AND USE TAX RECEIPTS DERIVED FROM THE RETAIL SALE AND USE OF TOURIST­RELATED GOODS AND SERVICES FROM THE FISCAL YEAR COMMENCING TWO YEARS PRIOR TO SUCH FISCAL YEAR AND THE FISCAL YEAR COMMENCING THREE YEARS PRIOR TO SUCH FISCAL YEAR. IF THE AMOUNT OF RECEIPTS FROM THE FISCAL YEAR COMMENCING TWO YEARS PRIOR TO THE FISCAL YEAR IN WHICH THE CALCULATION IS MADE EXCEEDS THE AMOUNT OF RECEIPTS FROM THE FISCAL YEAR COMMENCING THREE YEARS PRIOR TO THE FISCAL YEAR IN WHICH THE CALCULATION IS MADE, THE STATE TREASURER SHALL TRANSFER, IN THE FISCAL YEAR IN WHICH THE CALCULATION IS MADE, AN AMOUNT EQUAL TO THE AMOUNT OF SUCH INCREASE IN RECEIPTS AS PROVIDED IN SUB­SUBPARAGRAPH (C) OF THIS SUBPARAGRAPH (III).

(C)  FOR THE FISCAL YEARS COMMENCING JULY 1, 1999, JULY 1, 2000, AND JULY 1, 2001, THE STATE TREASURER SHALL ANNUALLY DISTRIBUTE ANY INCREASE IN THE AMOUNT OF STATE SALES AND USE TAX RECEIPTS DERIVED FROM THE RETAIL SALE AND USE OF TOURIST­RELATED GOODS AND SERVICES CALCULATED PURSUANT TO SUB­SUBPARAGRAPH (B) OF THIS SUBPARAGRAPH (III) AS FOLLOWS: THE FIRST TWELVE MILLION DOLLARS, TO BE ADJUSTED EACH YEAR FOR CHANGES FROM THE 1998 CONSUMER PRICE INDEX FOR THE DENVER­BOULDER CONSOLIDATED METROPOLITAN STATISTICAL AREA, OF THE AMOUNT OF SUCH INCREASE OR THE AMOUNT OF SUCH INCREASE, WHICHEVER IS LESS, SHALL BE CREDITED TO THE COLORADO TOURISM PROMOTION FUND CREATED IN SECTION 24­32­1306, C.R.S., AND ANY REMAINING AMOUNT OF THE INCREASE SHALL BE REFUNDED PURSUANT TO SECTION 39­22­121.

(IV)  FOR THE PURPOSES OF THIS PARAGRAPH (d.5), "STATE SALES AND USE TAX RECEIPTS DERIVED FROM THE RETAIL SALE AND USE OF TOURIST­RELATED GOODS AND SERVICES" MEANS THE TOTAL OF ALL REVENUES RECEIVED BY THE STATE FROM THE IMPOSITION OF STATE SALES AND USE TAXES UPON THE AMOUNT PAID FOR FOOD OR DRINK PURSUANT TO SECTION 39­26­104 (1) (e) AND UPON THE AMOUNT CHARGED TO ANY PERSON FOR ROOMS OR ACCOMMODATIONS PURSUANT TO SECTION 39­26­104 (1) (f).

SECTION 3.  39­26­123, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SUBSECTION to read:

39­26­123.  Receipts ­ disposition ­ repeal. (3) (a) (I)  EIGHTY­FIVE PERCENT OF ALL RECEIPTS COLLECTED UNDER THE PROVISIONS OF THIS ARTICLE SHALL BE CREDITED TO THE OLD AGE PENSION FUND, AND THE GENERAL ASSEMBLY SHALL MAKE APPROPRIATIONS FROM THE REMAINING FIFTEEN PERCENT FOR THE EXPENSES OF THE ADMINISTRATION OF THIS ARTICLE. FOR THE FISCAL YEAR COMMENCING JULY 1, 2002, AND FOR EACH FISCAL YEAR THEREAFTER, THE REMAINING FIFTEEN PERCENT OF NET REVENUES FROM SALES AND USE TAX RECEIPTS, AFTER MAKING APPROPRIATIONS FOR THE ADMINISTRATION OF THIS ARTICLE, SHALL BE ALLOCATED AS FOLLOWS: TEN PERCENT OF NET REVENUE FROM SALES AND USE TAX TO THE GENERAL FUND AND FIVE PERCENT THEREOF AS PROVIDED IN PARAGRAPH (b) OF THIS SUBSECTION (3).

(II)  FOR PURPOSES OF THIS PARAGRAPH (a), "NET REVENUE" MEANS THE GROSS AMOUNT OF SALES AND USE TAX RECEIPTS COLLECTED UNDER THE PROVISIONS OF THIS ARTICLE, LESS THREE AND ONE­THIRD PERCENT OF SUCH AMOUNT RETAINED BY VENDORS FOR THE COLLECTION AND REMITTANCE OF SUCH TAX PURSUANT TO SECTION 39­26­105 (1) (a).

(b) (I)  FOR THE FISCAL YEAR COMMENCING JULY 1, 2002, AND FOR EACH FISCAL YEAR THEREAFTER, THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF REVENUE SHALL ANNUALLY CALCULATE THE AMOUNT OF ANY INCREASE IN STATE SALES AND USE TAX RECEIPTS DERIVED FROM THE RETAIL SALE AND USE OF TOURIST­RELATED GOODS AND SERVICES AS PROVIDED IN SUBPARAGRAPH (II) OF THIS PARAGRAPH (b) AND THE STATE TREASURER SHALL DISTRIBUTE AN AMOUNT EQUAL TO ANY SUCH INCREASE AS PROVIDED IN SUBPARAGRAPH (III) OF THIS PARAGRAPH (b). ANY REMAINING REVENUES OF THE FIVE PERCENT OF SALES AND USE TAX REVENUES, MINUS THE AMOUNT OF SUCH INCREASE, IF ANY, SHALL BE CREDITED TO THE GENERAL FUND.

(II)  FOR THE FISCAL YEAR COMMENCING JULY 1, 2002, AND FOR EACH FISCAL YEAR THEREAFTER, THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF REVENUE SHALL CALCULATE THE AMOUNT OF STATE SALES AND USE TAX RECEIPTS DERIVED FROM THE RETAIL SALE AND USE OF TOURIST­RELATED GOODS AND SERVICES FROM THE FISCAL YEAR COMMENCING TWO YEARS PRIOR TO SUCH FISCAL YEAR AND THE FISCAL YEAR COMMENCING THREE YEARS PRIOR TO SUCH FISCAL YEAR. IF THE AMOUNT OF RECEIPTS FROM THE FISCAL YEAR COMMENCING TWO YEARS PRIOR TO THE FISCAL YEAR IN WHICH THE CALCULATION IS MADE EXCEEDS THE AMOUNT OF RECEIPTS FROM THE FISCAL YEAR COMMENCING THREE YEARS PRIOR TO THE FISCAL YEAR IN WHICH THE CALCULATION IS MADE, THE STATE TREASURER SHALL TRANSFER, IN THE FISCAL YEAR IN WHICH THE CALCULATION IS MADE, AN AMOUNT EQUAL TO THE AMOUNT OF SUCH INCREASE IN RECEIPTS AS PROVIDED IN SUBPARAGRAPH (III) OF THIS PARAGRAPH (b).

(III)  FOR THE FISCAL YEAR COMMENCING JULY 1, 2002, AND FOR EACH FISCAL YEAR THEREAFTER, THE STATE TREASURER SHALL ANNUALLY DISTRIBUTE ANY INCREASE IN THE AMOUNT OF STATE SALES AND USE TAX RECEIPTS DERIVED FROM THE RETAIL SALE AND USE OF TOURIST­RELATED GOODS AND SERVICES CALCULATED PURSUANT TO SUBPARAGRAPH (II) OF THIS PARAGRAPH (b) AS FOLLOWS: THE FIRST TWELVE MILLION DOLLARS, TO BE ADJUSTED EACH YEAR FOR CHANGES FROM THE 1998 CONSUMER PRICE INDEX FOR THE DENVER­BOULDER CONSOLIDATED METROPOLITAN STATISTICAL AREA, OF THE AMOUNT OF SUCH INCREASE OR THE AMOUNT OF SUCH INCREASE, WHICHEVER IS LESS, SHALL BE CREDITED TO THE COLORADO TOURISM PROMOTION FUND CREATED IN SECTION 24­32­1306, C.R.S., AND ANY REMAINING AMOUNT OF THE INCREASE SHALL BE REFUNDED PURSUANT TO SECTION 39­22­121.

(IV)  FOR THE PURPOSES OF THIS PARAGRAPH (b), "STATE SALES AND USE TAX RECEIPTS DERIVED FROM THE RETAIL SALE AND USE OF TOURIST­RELATED GOODS AND SERVICES" MEANS THE TOTAL OF ALL REVENUES RECEIVED BY THE STATE FROM THE IMPOSITION OF STATE SALES AND USE TAXES UPON THE AMOUNT PAID FOR FOOD OR DRINK PURSUANT TO SECTION 39­26­104 (1) (e) AND UPON THE AMOUNT CHARGED TO ANY PERSON FOR ROOMS OR ACCOMMODATIONS PURSUANT TO SECTION 39­26­104 (1) (f).

SECTION 4.  Part 1 of article 22 of title 39, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SECTION to read:

39­22­121.  Legislative declaration ­ refund of increased state sales tax receipts from tourism ­ credit against state income tax. (1)  THE GENERAL ASSEMBLY HEREBY FINDS AND DECLARES THAT:

(a)  PURSUANT TO SECTION 39­26­123 (2) AND (3), A PORTION OF THE AMOUNT OF STATE SALES AND USE TAX REVENUES AND A PORTION OF ANY INCREASE IN THE AMOUNT OF STATE SALES AND USE TAX REVENUES GENERATED FROM THE IMPOSITION OF THE STATE SALES AND USE TAX UPON TOURIST­RELATED ACTIVITIES ARE TRANSFERRED TO THE COLORADO TOURISM PROMOTION FUND TO PROMOTE TOURISM IN THE STATE;

(b)  BECAUSE COLORADO RESIDENTS PAY A PORTION OF THE INCREASED STATE SALES AND USE TAX REVENUES USED TO PROMOTE TOURISM, A PORTION OF ANY INCREASE IN THE AMOUNT OF SALES AND USE TAX REVENUES FROM TOURIST­RELATED ACTIVITIES SHOULD BE RETURNED TO THE RESIDENTS;

(c)  IT IS REASONABLE AND FAIR TO REFUND A PORTION OF INCREASED STATE REVENUES DERIVED FROM THE RETAIL SALE AND USE OF TOURIST­RELATED GOODS AND SERVICES TO A LARGE GROUP OF INDIVIDUALS;

(d)  THE MOST COST­EFFECTIVE AND EXPEDITIOUS METHOD OF REFUNDING A PORTION INCREASED STATE REVENUES DERIVED FROM THE RETAIL SALE AND USE OF TOURIST­RELATED GOODS AND SERVICES IS THROUGH THE STATE INCOME TAX SYSTEM BUT THAT A CREDIT AGAINST STATE INCOME TAX IS MERELY A MECHANISM FOR REFUNDING SAID STATE 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 FOR WHICH A CREDIT IS CLAIMED 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 FOR WHICH THE CREDIT IS CLAIMED AND WHO IS AT LEAST EIGHTEEN YEARS OF AGE DURING ALL OF THAT TAX YEAR.

(3)  WITH RESPECT TO TAXABLE YEARS COMMENCING ON AND AFTER JANUARY 1, 1999, IF THERE IS AN AMOUNT THAT IS REQUIRED TO BE REFUNDED TO QUALIFIED TAXPAYERS FOR SUCH YEAR AS PROVIDED IN SECTION 39­26­123, THERE SHALL BE ALLOWED TO EACH QUALIFIED INDIVIDUAL A STATE INCREASED TOURISM SALES TAX REFUND CREDIT IN AN AMOUNT DETERMINED PURSUANT TO SUBSECTION (4) OF THIS SECTION WITH RESPECT TO THE INCOME TAXES IMPOSED BY THIS ARTICLE.

(4) (a)  EXCEPT AS PROVIDED IN PARAGRAPH (b) OF THIS SUBSECTION (4), THE AMOUNT OF THE CREDIT ALLOWED PURSUANT TO THIS SECTION SHALL BE CALCULATED ON OR BEFORE SEPTEMBER 1, 1999, BY THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF REVENUE AND SHALL EQUAL, FOR EACH QUALIFIED INDIVIDUAL, THE AMOUNT OF INCREASED REVENUES REQUIRED TO BE REFUNDED PURSUANT TO SECTION 39­26­123 (2) OR (3), DIVIDED BY THE NUMBER OF QUALIFIED INDIVIDUALS, AS ESTIMATED BY THE EXECUTIVE DIRECTOR, WHO WILL CLAIM SUCH REFUND FOR SUCH TAX YEAR.

(b)  IN THE EVENT THAT THE TOTAL AMOUNT OF MONEYS ACTUALLY REFUNDED PURSUANT TO THIS SECTION FOR ANY PREVIOUS TAXABLE YEAR DOES NOT EQUAL THE AMOUNT OF INCREASED REVENUES REQUIRED TO BE REFUNDED FOR THAT TAXABLE YEAR PURSUANT TO SECTION 39­26­123 (2) OR (3), AS APPLICABLE, THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF REVENUE SHALL ADJUST THE AMOUNT OF THE CREDIT MADE IN THE SUBSEQUENT TAX YEAR BY INCREASING OR DECREASING THE AMOUNT OF THE CREDIT AS NEEDED TO ENSURE THAT THE REQUIRED AMOUNTS ARE BEING REFUNDED TO QUALIFIED INDIVIDUALS AS SOON AS PRACTICABLE.

(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 AN INCOME TAX RETURN WITH THE DEPARTMENT OF REVENUE IN COMPLIANCE WITH THE PROVISIONS OF THIS ARTICLE. THE DEPARTMENT OF REVENUE SHALL NOT ALLOW SAID CREDIT CLAIMED ON ANY 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 INCOME TAX RETURN BE ALLOWED IF SAID RETURN IS FILED AFTER OCTOBER 15 OF THE YEAR FOLLOWING THE TAXABLE YEAR FOR WHICH THE CREDIT IS 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 AN INCOME TAX RETURN WITH THE DEPARTMENT OF REVENUE NO LATER THAN APRIL 15 OF THE YEAR FOLLOWING THE TAXABLE YEAR FOR WHICH THE CREDIT IS 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 INCOME TAX RETURN FILED WITH THE DEPARTMENT OF REVENUE AFTER APRIL 15 OF THE YEAR FOLLOWING THE TAXABLE YEAR FOR WHICH THE CREDIT IS CLAIMED.

(6)  IF THE CREDIT ALLOWED UNDER THIS SECTION EXCEEDS THE INCOME TAXES OTHERWISE DUE ON THE CLAIMANT'S INCOME, THE AMOUNT OF THE CREDIT NOT USED AS AN OFFSET AGAINST INCOME TAXES MAY NOT BE CARRIED FORWARD AS A TAX CREDIT AGAINST SUBSEQUENT YEARS' INCOME TAX LIABILITY AND SHALL BE REFUNDED TO THE CLAIMANT.

(7)  IN ADDITION TO ANY OTHER PENALTIES ALLOWED BY LAW, ANY PERSON WHO CLAIMS BUT IS NOT ELIGIBLE TO CLAIM THE CREDIT ALLOWED PURSUANT TO THIS SECTION SHALL BE SUBJECT TO THE CRIMINAL PENALTIES IMPOSED PURSUANT TO SECTION 39­21­118, AS APPLICABLE.

SECTION 5.  Repeal.  24­32­1307, Colorado Revised Statutes, is repealed.

SECTION 6.  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.