Second Regular Session
Sixty-first General Assembly
LLS NO. 980901.01D DLC
HOUSE BILL 981412
STATE OF COLORADO
BY REPRESENTATIVES George, Anderson, and Saliman;
also SENATORS Norton and Powers.
FINANCE
A BILL FOR AN ACT
CONCERNING THE REFUNDING OF STATE REVENUES IN EXCESS
OF THE CONSTITUTIONAL LIMITATION ON STATE FISCAL YEAR SPENDING
FOR ANY GIVEN FISCAL YEAR.
Bill Summary
(Note: This summary applies to this bill as introduced
and does not necessarily reflect any amendments that may be subsequently
adopted.)
Requires that a specified percentage of state excess revenues for any given fiscal year commencing on or after July 1, 1997, be refunded through a state income tax credit with the amount of the credit depending on the taxpayer's federal adjusted gross income.
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 excess state revenues for any given fiscal year.
Specifies that a person is not eligible for the credit if they are serving a sentence in a correctional facility at the time of filing an income tax return.
Requires the executive director of the department of revenue to calculate the amounts of the tax credit if excess revenues exist that are required to be refunded. Provides for publication of the amounts of the credit in rules promulgated by the director.
Based upon the financial statement prepared to ascertain
compliance with section 20 of article X of the state constitution,
requires the state controller to certify the amount of state revenues
in excess of the constitutional limitation on state fiscal year
spending for a given fiscal year by a specified date. Requires
the state auditor to conduct an audit of the certified amount
of excess state revenues by a specified date.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. Article 77 of title 24, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SECTION to read:
2477103.5. Excess revenues refund. IF, FOR ANY STATE FISCAL YEAR COMMENCING ON OR AFTER JULY 1, 1997, THE AMOUNT OF STATE REVENUES EXCEEDS THE LIMITATION ON STATE FISCAL YEAR SPENDING IMPOSED BY SECTION 20 (7) (a) OF ARTICLE X OF THE STATE CONSTITUTION AND VOTERS STATEWIDE HAVE NOT AUTHORIZED THE STATE TO RETAIN AND SPEND ALL OR ANY PORTION OF THE EXCESS STATE REVENUES FOR THAT FISCAL YEAR, AN AMOUNT EQUAL TO FIFTYFIVE PERCENT OF ALL EXCESS REVENUES REQUIRED TO BE REFUNDED FOR THAT FISCAL YEAR SHALL BE REFUNDED IN THE NEXT FISCAL YEAR PURSUANT TO SECTION 3922120, C.R.S.
SECTION 2. 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 ANY GIVEN
FISCAL YEAR in compliance with section 20 of article X of the
state constitution IF THERE ARE STATE EXCESS REVENUES FOR THAT
FISCAL YEAR;
(i) It is the considered judgment of the general assembly that:
(I) The
State excess revenues, IF ANY, for the
199697 fiscal year are ANY
GIVEN FISCAL YEAR 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 ANY GIVEN FISCAL YEAR due to the impossibility of identifying
or returning prior payments;
(III) It is reasonable and fair to refund
A PORTION OF state excess revenues, for
the 199697 fiscal year IF ANY,
FOR ANY GIVEN FISCAL YEAR 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 A PORTION OF state excess
revenues, for the 199697 fiscal
year IF ANY, FOR ANY GIVEN FISCAL
YEAR 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) ONE OF the most costeffective
and expeditious method of refunding state excess revenues, for
the 199697 fiscal year IF ANY,
FOR ANY GIVEN FISCAL YEAR 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) (a) As used in this section, "qualified individual" means:
(a) (I) A
natural person who is domiciled in this state for the entire taxable
year commencing on January 1 1997,
and ending ON 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) (II) Any
natural person who is domiciled in this state for the entire taxable
year commencing on January 1 1997,
and ending ON 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.
(b) "QUALIFIED INDIVIDUAL" DOES NOT INCLUDE ANY NATURAL PERSON SERVING A SENTENCE OF CONFINEMENT IN A CORRECTIONAL FACILITY UNDER THE SUPERVISION OF THE DEPARTMENT OF CORRECTIONS OR THE UNITED STATES GOVERNMENT AS A RESULT OF CONVICTION OF A CRIME AT THE TIME OF FILING A COLORADO INDIVIDUAL INCOME TAX RETURN, REGARDLESS OF WHETHER SUCH PERSON MEETS THE QUALIFICATIONS IN PARAGRAPH (a) OF THIS SUBSECTION (2).
(3) With respect to the taxable year commencing
on January 1, 1997
1998, and ending December 31, 1997
1998, AND EACH SUBSEQUENT TAXABLE YEAR, 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 THAT ARE REQUIRED TO BE REFUNDED PURSUANT TO SECTION
2477103.5, C.R.S.
(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 2477103.5, 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
2477103.5, 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 2477103.5, 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 CREDIT 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 CREDIT 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 CREDIT 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 SUBPARAGRAPH (I) OF 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 SUBPARAGRAPH (I) OF 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)
SUBPARAGRAPH (II) OF PARAGRAPH (a) 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) SUBPARAGRAPH (II) OF PARAGRAPH
(a) 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 IT IS CERTIFIED IN ACCORDANCE WITH THE PROVISIONS OF SECTION 2477106.5, C.R.S., THAT STATE REVENUES EXCEED THE LIMITATION ON STATE FISCAL YEAR SPENDING IMPOSED BY SECTION 20 (7) (a) OF ARTICLE X OF THE STATE CONSTITUTION FOR THE FISCAL YEAR ENDING IN THAT CALENDAR YEAR THAT ARE REQUIRED TO BE REFUNDED PURSUANT TO SECTION 2477103.5, C.R.S.:
(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 DURING 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) IF ONE OR MORE BALLOT QUESTIONS ARE SUBMITTED TO THE VOTERS AT A STATEWIDE ELECTION TO BE HELD IN NOVEMBER OF ANY GIVEN CALENDAR YEAR THAT SEEK AUTHORIZATION FOR THE STATE TO RETAIN AND SPEND ALL OR ANY PORTION OF THE AMOUNTS OF EXCESS STATE REVENUES FOR THE FISCAL YEAR ENDING DURING SAID CALENDAR YEAR, THE EXECUTIVE DIRECTOR SHALL NOT CALCULATE THE AMOUNTS OF THE CREDIT UNTIL THE RESULTS OF SAID ELECTION ARE KNOWN SO THAT THE CREDIT MAY BE CALCULATED TO REFLECT THE IMPACT OF THE RESULTS OF SAID ELECTION ON THE AMOUNT OF EXCESS STATE REVENUES REQUIRED TO BE REFUNDED.
(c) 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, 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 (c), 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 3. 2477106.5, Colorado Revised Statutes, is amended to read:
2477106.5. Annual financial report certification of state excess revenues. (1) (a) For each fiscal year, the controller shall prepare a financial report for the state for purposes of ascertaining compliance with the provisions of this article. Any financial report prepared pursuant to this section shall include, but shall not be limited to, state fiscal year spending, reserves, revenues, and debt.
(b) BASED UPON THE FINANCIAL STATEMENT PREPARED IN ACCORDANCE WITH PARAGRAPH (a) OF THIS SUBSECTION (1) FOR ANY FISCAL YEAR COMMENCING ON OR AFTER JULY 1, 1997, THE CONTROLLER SHALL CERTIFY TO THE GOVERNOR, THE GENERAL ASSEMBLY, AND THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF REVENUE NO LATER THAN SEPTEMBER 1 FOLLOWING THE END OF A FISCAL YEAR THE AMOUNT OF STATE REVENUES IN EXCESS OF THE LIMITATION ON STATE FISCAL YEAR SPENDING IMPOSED BY SECTION 20 (7) (a) OF ARTICLE X OF THE STATE CONSTITUTION, IF ANY, FOR SUCH FISCAL YEAR.
(2) Such
ANY financial report PREPARED AND CERTIFICATION OF STATE EXCESS
REVENUES MADE PURSUANT TO SUBSECTION (1) OF THIS SECTION shall
be audited by the state auditor. NO LATER THAN SEPTEMBER 15 FOLLOWING
THE CERTIFICATION MADE BY THE STATE CONTROLLER FOR ANY GIVEN FISCAL
YEAR, THE STATE AUDITOR SHALL REPORT AND TRANSMIT TO THE GOVERNOR,
THE GENERAL ASSEMBLY, AND THE EXECUTIVE DIRECTOR OF THE DEPARTMENT
OF REVENUE THE RESULTS OF ANY AUDIT CONDUCTED IN ACCORDANCE WITH
THIS SUBSECTION (2).
SECTION 4. 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.