First Regular Session
Sixty-second General Assembly
LLS NO. 99-0371.01 Bob Lackner HOUSE BILL 99-1154
STATE OF COLORADO
BY REPRESENTATIVE Young;
also SENATOR Dennis.
FINANCE
A BILL FOR AN ACT
101 CONCERNING A CREDIT AGAINST COLORADO INCOME TAX FOR THE TOTAL
102 AMOUNT OF THE STATE ESTATE TAX LEVIED UPON THE SHARE OF
103 THE GROSS ESTATE THAT IS ATTRIBUTABLE TO AGRICULTURAL
104 ASSETS.
Bill Summary
(Note: This summary applies to this bill as introduced and does
not necessarily reflect any amendments that may be subsequently
adopted.)
Subject to certain limitations, provides that, for income tax years
commencing on or after January 1, 2001, the total amount of the tax
levied on the gross estate that is attributable to agricultural land,
agricultural equipment, agricultural residential improvements, and
livestock is credited against a resident estate's state income tax
obligations.
Provides that, if the credit exceeds the amount of income tax due
for the taxable year, the excess amount may be carried forward as a tax
credit against subsequent years' income tax liability for a period not
exceeding 5 years and shall be applied first to the earliest years possible.
Requires documentation of the value of the agricultural land,
agricultural equipment, agricultural residential improvements, and
livestock for which such credit is claimed.
1 Be it enacted by the General Assembly of the State of Colorado:
2 SECTION 1. Part 4 of article 22 of title 39, Colorado Revised
3 Statutes, is amended BY THE ADDITION OF A NEW SECTION to read:
[ ] 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.
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1 39-22-408. Credit for estate tax payment attributable to
2 agricultural land, equipment, residential improvements, and livestock
3 - definitions. (1) AS USED IN THIS SECTION, UNLESS THE CONTEXT
4 OTHERWISE REQUIRES:
5 (a) "AGRICULTURAL EQUIPMENT" HAS THE SAME MEANING AS
6 "AGRICULTURAL EQUIPMENT WHICH IS USED ON THE FARM OR RANCH IN THE
7 PRODUCTION OF AGRICULTURAL PRODUCTS" AS DEFINED IN SECTION
8 39-1-102 (1.3).
9 (b) "AGRICULTURAL LAND" HAS THE SAME MEANING AS SET FORTH
10 IN SECTION 39-1-102 (1.6).
11 (c) "AGRICULTURAL RESIDENTIAL IMPROVEMENTS" HAS THE SAME
12 MEANING AS "RESIDENTIAL IMPROVEMENTS", AS DEFINED IN SECTION
13 39-1-102 (14.3), THAT ARE LOCATED ON AGRICULTURAL LAND.
14 (d) "EFFECTIVE TAX RATE" MEANS THE TAXPAYER'S COLORADO
15 ESTATE TAX LIABILITY DIVIDED BY THE TAXPAYER'S GROSS ESTATE AS
16 DETERMINED IN ACCORDANCE WITH ARTICLE 23.5 OF THIS TITLE.
17 (e) "GROSS ESTATE" HAS THE SAME MEANING AS SET FORTH IN
18 SECTION 39-23.5-102 (9).
19 (f) "LIVESTOCK" HAS THE SAME MEANING AS SET FORTH IN SECTION
20 35-1-102 (6), C.R.S.
21 (g) "RESIDENT ESTATE" HAS THE SAME MEANING AS SET FORTH IN
22 SECTION 39-22-103 (7).
23 (h) "TAXPAYER" MEANS A RESIDENT ESTATE.
24 (2) FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY
25 1, 2001, THERE SHALL BE ALLOWED TO EACH RESIDENT ESTATE AS A CREDIT
26 AGAINST THE TAX IMPOSED BY THIS ARTICLE AN AMOUNT EQUAL TO THE
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1 PRODUCT OF THE TAXPAYER'S EFFECTIVE TAX RATE MULTIPLIED BY THE
2 VALUE OF THAT PORTION OF THE TAXPAYER'S GROSS ESTATE THAT IS
3 ATTRIBUTABLE TO AGRICULTURAL LAND, AGRICULTURAL EQUIPMENT,
4 AGRICULTURAL RESIDENTIAL IMPROVEMENTS, AND LIVESTOCK.
5 (3) IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SECTION
6 EXCEEDS THE AMOUNT OF THE INCOME TAX OTHERWISE DUE ON THE
7 CLAIMANT'S INCOME, THE AMOUNT OF THE CREDIT NOT USED AS AN OFFSET
8 AGAINST INCOME TAXES MAY BE CARRIED FORWARD AS A TAX CREDIT
9 AGAINST SUBSEQUENT YEAR'S INCOME TAX LIABILITY FOR A PERIOD NOT
10 EXCEEDING FIVE YEARS AND SHALL BE APPLIED FIRST TO THE EARLIEST
11 YEARS POSSIBLE.
12 (4) ANY INCOME TAX RETURN FILED WITH THE DEPARTMENT OF
13 REVENUE FOR THE PURPOSE OF CLAIMING THE CREDIT ALLOWED BY THIS
14 SECTION SHALL BE ACCOMPANIED BY COPIES OF SUCH DOCUMENTATION AS
15 REQUIRED BY THE DEPARTMENT TO ESTABLISH THE VALUE OF THE
16 AGRICULTURAL LAND, AGRICULTURAL EQUIPMENT, AGRICULTURAL
17 RESIDENTIAL IMPROVEMENTS, AND LIVESTOCK FOR WHICH THE CREDIT IS
18 CLAIMED.
19 SECTION 2. Effective date. This act shall take effect at 12:01
20 a.m. on the day following the expiration of the ninety-day period after
21 final adjournment of the general assembly that is allowed for submitting
22 a referendum petition pursuant to article V, section 1 (3) of the state
23 constitution; except that, if a referendum petition is filed against this act
24 or an item, section, or part of this act within such period, then the act,
25 item, section, or part, if approved by the people, shall take effect on the
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1 date of the official declaration of the vote thereon by proclamation of the
2 governor.