First Regular Session
Sixty-second General Assembly
LLS NO. 99-0180.01 Jane Ard-Smith HOUSE BILL 99-1008
STATE OF COLORADO
BY REPRESENTATIVE Stengel;
also SENATOR Andrews.
FINANCE
A BILL FOR AN ACT
101 CONCERNING THE REDUCTION OF THE STATE INCOME TAX RATE.
Bill Summary
(Note: This summary applies to this bill as introduced and does
not necessarily reflect any amendments that may be subsequently
adopted.)
Lowers the state income tax rate imposed on individuals, estates,
trusts, domestic C corporations, and foreign C corporations doing
business in Colorado from 5% to 4«% for income tax years commencing
on or after January 1, 1999.
1 Be it enacted by the General Assembly of the State of Colorado:
2 SECTION 1. 39-22-104 (1), Colorado Revised Statutes, is
3 amended, and the said 39-22-104 is further amended BY THE
4 ADDITION OF A NEW SUBSECTION, to read:
5 39-22-104. Income tax imposed on individuals, estates, and
6 trusts - single rate. (1) Subject to subsection (2) of this section, with
7 respect to taxable years commencing on or after January 1, 1987, BUT
8 PRIOR TO JANUARY 1, 1999, a tax of five percent is imposed on the federal
9 taxable income, as determined pursuant to section 63 of the internal
10 revenue code, of every individual, estate, and trust.
11 (1.5) SUBJECT TO SUBSECTION (2) OF THIS SECTION, WITH RESPECT
[ ] denotes HOUSE amendment. { } denotes SENATE amendment.
Capital letters indicate new material to be added to existing statute.
Dashes through the words indicate material to be deleted from existing statute.
Page 2
1 TO TAXABLE YEARS COMMENCING ON OR AFTER JANUARY 1, 1999, A TAX
2 OF FOUR AND ONE-HALF PERCENT IS IMPOSED ON THE FEDERAL TAXABLE
3 INCOME, AS DETERMINED PURSUANT TO SECTION 63 OF THE INTERNAL
4 REVENUE CODE, OF EVERY INDIVIDUAL, ESTATE, AND TRUST.
5 SECTION 2. 39-22-301 (1) (d) (I) (G), Colorado Revised
6 Statutes, is amended, and the said 39-22-301 (1) (d) (I) is further amended
7 BY THE ADDITION OF A NEW SUB-SUBPARAGRAPH, to read:
8 39-22-301. Corporate tax imposed. (1) (d) (I) A tax is imposed
9 upon each domestic C corporation and foreign C corporation doing
10 business in Colorado annually in an amount of the net income of such C
11 corporation during the year derived from sources within Colorado as set
12 forth in the following schedule of rates:
13 (G) For income tax years commencing on or after July 1, 1993,
14 BUT PRIOR TO JANUARY 1, 1999, five percent of the Colorado net income.
15 (H) FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY
16 1, 1999, FOUR AND ONE-HALF PERCENT OF THE COLORADO NET INCOME.
17 SECTION 3. Effective date. This act shall take effect at 12:01
18 a.m. on the day following the expiration of the ninety-day period after
19 final adjournment of the general assembly that is allowed for submitting
20 a referendum petition pursuant to article V, section 1 (3) of the state
21 constitution; except that, if a referendum petition is filed against this act
22 or an item, section, or part of this act within such period, then the act,
23 item, section, or part, if approved by the people, shall take effect on the
24 date of the official declaration of the vote thereon by proclamation of the
25 governor.