TITLE: CONCERNING THE CREATION OF AN INCOME TAX CREDIT TO REFUND EXCESS STATE REVENUES TO TAXPAYERS WHO DONATE FUNDS TO QUALIFIED NONPROFIT ORGANIZATIONS THAT PURCHASE OPEN SPACE.

Fiscal Impact Summary	FY 1999/2000	FY 2000/2001
State Revenues General Fund	Income Tax Revenue Reduction
State Expenditures General Fund
FTE Position Change	0.0 FTE	0.0 FTE
Other State Impact: TABOR
Effective Date: 90 days after adjournment, unless a referendum petition is filed. Effective for income tax years beginning January 1, 2000.
Appropriation Summary for FY 1999-2000: None
Local Government Impact: None

This bill, for income tax years beginning January 1, 2000, creates an income tax credit for taxpayers who donate funds to a qualified nonprofit organization for the acquisition of open space, subject to voters not authorizing the state to retain excess revenues in a given fiscal year. The bill defines "qualified nonprofit organization".

The amount of the credit is established at 50 percent of the amount donated, not to exceed $10,000 per tax year. Any unused portions of the income tax credit are to not be carried forward. A taxpayer is allowed to claim one such credit per year, and no credit is to be allowed to any taxpayer who has claimed a charitable contribution deduction pursuant to section 170 of the federal internal revenue code for the amount donated to a qualified nonprofit organization.

The bill creates an income tax credit which will reduce annual state General Fund revenue beginning January 1, 2000, subject to voters not authorizing the state to retain excess revenues in a given fiscal year. The number of taxpayers who will claim the credit and the amount of the credits to be claimed have not been estimated.

This bill does not require the Department of Revenue to maintain data for this tax credit. Additionally, the number of entities to claim this credit is anticipated to be minimal. Therefore, this bill will not affect state expenditures.

1) The income tax revenue reduction identified in this bill will mean a reduction in the amount of state funds required to be refunded to taxpayers under the terms of TABOR, and less state funds available for capital construction needs.

2) A state income tax reduction will increase a taxpayer's federal income tax obligation.

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