First Regular Session
Sixty-second General Assembly
LLS NO. 99-0375.01 Jane Ard-Smith HOUSE BILL 99-1205
STATE OF COLORADO
BY REPRESENTATIVE Gordon
AGRICULTURE, LIVESTOCK, & NATURAL RESOURCES
A BILL FOR AN ACT
101 CONCERNING THE CREATION OF AN INCOME TAX CREDIT TO REFUND
102 EXCESS STATE REVENUES TO TAXPAYERS WHO DONATE FUNDS TO
103 QUALIFIED NONPROFIT ORGANIZATIONS THAT PURCHASE OPEN
104 SPACE.
Bill Summary
(Note: This summary applies to this bill as introduced and does
not necessarily reflect any amendments that may be subsequently
adopted.)
For income tax years commencing on or after January 1, 2000,
creates an income tax credit for taxpayers who donate funds to a qualified
nonprofit organization for the acquisition of open space if the amount of
state revenues exceeded the limitation on state fiscal year spending in a
given fiscal year and the voters statewide did not authorize the state to
retain and spend such excess. Defines "qualified nonprofit organization"
as an organization that is exempt from taxation under section 501 (c) (3)
of the federal internal revenue code and that is organized and operated for
the purpose of acquiring land to be used as open space for use by the
public.
Establishes the amount of the income tax credit allowed per
income tax year at 50% of the amount donated by the taxpayer but not to
exceed $10,000. Allows a taxpayer to claim one tax credit per income tax
year, but does not allow the income tax credit to be carried forward to
succeeding income tax years. Disallows the income tax credit if the
taxpayer claims a charitable contribution deduction under the federal
internal revenue code for the amount of funds donated to a qualified
nonprofit organization.
Requires qualified nonprofit organizations that receive donations
to provide taxpayers a receipt specifying the amount of the donation and
[ ] 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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the name and address of the organization.
1 Be it enacted by the General Assembly of the State of Colorado:
2 SECTION 1. Part 5 of article 22 of title 39, Colorado Revised
3 Statutes, is amended BY THE ADDITION OF A NEW SECTION to
4 read:
5 39-22-522. Credit against tax - definitions - donations to
6 qualified programs that purchase open space. (1) AS USED IN THIS
7 SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES:
8 (a) "QUALIFIED NONPROFIT ORGANIZATION" MEANS ANY
9 ORGANIZATION THAT IS EXEMPT FROM TAXATION UNDER SECTION 501
10 (3) OF THE INTERNAL REVENUE CODE AND THAT IS ORGANIZED AND
11 OPERATED FOR THE PURPOSE OF ACQUIRING LAND TO BE USED AS OPEN
12 SPACE FOR USE BY THE PUBLIC.
13 (b) "TAXPAYER" MEANS A RESIDENT INDIVIDUAL SUBJECT TO PART
14 1 OF THIS ARTICLE OR A DOMESTIC OR FOREIGN CORPORATION SUBJECT TO
15 THE PROVISIONS OF PART 3 OF THIS ARTICLE.
16 (2) FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY
17 1, 2000, IF THE AMOUNT OF STATE REVENUES FOR THE STATE FISCAL YEAR
18 ENDING IN THE IMMEDIATELY PRECEDING INCOME TAX YEAR EXCEEDED
19 THE LIMITATION ON STATE FISCAL YEAR SPENDING IMPOSED BY SECTION 20
20 (7) (a) OF ARTICLE X OF THE STATE CONSTITUTION AND THE VOTERS
21 STATEWIDE DID NOT AUTHORIZE THE STATE TO RETAIN AND SPEND ALL OF
22 THE EXCESS STATE REVENUES FOR THAT STATE FISCAL YEAR, THEN there
23 shall be allowed a credit with respect to the income taxes
24 imposed by this article to each taxpayer who donates funds to a
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1 qualified nonprofit organization for the purpose of acquiring
2 land to be used as open space for the benefit of the public. The
3 credit allowed pursuant to this subsection (2) SHALL BE AN
4 AMOUNT EQUAL TO FIFTY PERCENT OF THE AMOUNT DONATED BY THE
5 TAXPAYER TO A QUALIFIED NONPROFIT ORGANIZATION BUT SHALL NOT
6 EXCEED TEN THOUSAND DOLLARS PER INCOME TAX YEAR.
7 (3) IF THE AMOUNT OF THE CREDIT PROVIDED FOR PURSUANT TO
8 SUBSECTION (2) OF THIS SECTION EXCEEDS THE AMOUNT OF INCOME TAXES
9 OTHERWISE DUE ON THE TAXPAYER'S INCOME IN THE INCOME TAX YEAR
10 FOR WHICH THE CREDIT IS BEING CLAIMED, THE AMOUNT OF THE CREDIT
11 NOT USED AS AN OFFSET AGAINST INCOME TAXES IN SAID INCOME TAX
12 YEAR MAY NOT BE CARRIED FORWARD AS A CREDIT AGAINST SUBSEQUENT
13 YEARS' INCOME TAX LIABILITY AND SHALL NOT BE REFUNDABLE.
14 (4) A TAXPAYER MAY CLAIM ONLY ONE TAX CREDIT UNDER THIS
15 SECTION PER INCOME TAX YEAR. AN INCOME TAX CREDIT UNDER THIS
16 SECTION SHALL NOT BE ALLOWED TO A TAXPAYER WHO HAS CLAIMED A
17 CHARITABLE CONTRIBUTION DEDUCTION PURSUANT TO SECTION 170 OF
18 THE FEDERAL INTERNAL REVENUE CODE FOR THE AMOUNT OF FUNDS
19 DONATED TO A QUALIFIED NONPROFIT ORGANIZATION.
20 (5) UPON THE DONATION OF FUNDS, THE QUALIFIED NONPROFIT
21 ORGANIZATION SHALL PROVIDE TO THE DONATING TAXPAYER A RECEIPT
22 SPECIFYING THE AMOUNT OF THE DONATION AND THE NAME AND ADDRESS
23 OF THE QUALIFIED NONPROFIT ORGANIZATION.
24 SECTION 2. Effective date. This act shall take effect at 12:01
25 a.m. on the day following the expiration of the ninety-day period after
26 final adjournment of the general assembly that is allowed for submitting
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1 a referendum petition pursuant to article V, section 1 (3) of the state
2 constitution; except that, if a referendum petition is filed against this act
3 or an item, section, or part of this act within such period, then the act,
4 item, section, or part, if approved by the people, shall take effect on the
5 date of the official declaration of the vote thereon by proclamation of the
6 governor.