Colorado Legislative Council Staff

STATE

FISCAL IMPACT

Drafting Number:

Prime Sponsor(s):

LLS 99-0357

Rep. Leyba

Sen. Thiebaut

Date:

Bill Status:

Fiscal Analyst:

January 12, 1999

House Finance

Steve Tammeus (866-2756)

 

TITLE:            CONCERNING A PROHIBITION ON THE ABILITY OF A TAXPAYER THAT ENGAGES IN AN UNFAIR LABOR PRACTICE TO CLAIM A TAX BENEFIT PURSUANT TO THE "URBAN AND RURAL ENTERPRISE ZONE ACT".



Fiscal Impact Summary

FY 1999/2000

FY 2000/2001

State Revenues

General Fund


Income Tax Increase


Income Tax Increase

State Expenditures

General Fund

 


 

FTE Position Change

0.0 FTE

0.0 FTE

Other State Impact: TABOR

Effective Date: Upon signature of the Governor. Effective tax years commencing January 1, 2000.

Appropriation Summary for FY 1999-2000: None

Local Government Impact: None



Summary of Legislation


            This bill, for tax years commencing January 1, 2000, prohibits any taxpayer that has engaged in an unfair labor practice during the tax year from claiming enterprise zone income tax credits, exemptions, or incentive payments. The provisions of this bill will not apply to the amount of any credit claimed for contributions stipulated in an agreement executed prior to the effective date of the bill. The provisions of the bill do not apply to any employer who employed a total of 50 or fewer employees at all the taxpayer's locations at all times during the year.



State Revenues


            This bill will prohibit certain taxpayers from claiming enterprise zone credits which will increase General Fund income tax revenue. The Department of Revenue does not maintain data regarding businesses in enterprise zones that have engaged in an unfair labor practice. Therefore, the amount of any resulting revenue increase has not been estimated.



State Expenditures


            This bill will require the Department of Revenue audit staff to research whether a taxpayer was involved in fair labor standards issues at the time the enterprise zone credits were claimed. However, the department anticipates these additional minimal audit tasks can be absorbed within existing resources.



Other State Impacts


            The income tax revenue increase identified in this bill will mean an increase in the amount of state funds required to be refunded to taxpayers under the terms of TABOR.



State Appropriations


            This fiscal note would imply that no new state appropriations are required for FY 1999-2000.



Departments Contacted

 

            Local Affairs              Revenue