First Regular Session
Sixty-second General Assembly
LLS NO. 99-0669.01 Gregg Fraser SENATE BILL 99-126
STATE OF COLORADO
BY SENATOR Reeves
FINANCE
APPROPRIATIONS
A BILL FOR AN ACT
101 CONCERNING THE STATE INCOME TAX, AND, IN CONNECTION THEREWITH,
102 PROVIDING A COLORADO EARNED INCOME TAX CREDIT, CREATING
103 A SENIOR CITIZEN INCOME TAX CREDIT, AND TEMPORARILY
104 REDUCING 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.)
Establishes a temporary Colorado earned income tax credit. Bases
the amount of the credit upon the amount of the federal earned income tax
credit claimed by a resident individual.
Creates a temporary senior citizen income tax credit for resident
individuals above a specified age.
Allows a Colorado earned income tax credit and senior citizen
income tax credit to be refunded to a resident individual if the resident
individual does not have a tax liability against which to offset all or part
of the credit.
Temporarily reduces the state income tax rate to a specified rate
for specified tax years.
1 Be it enacted by the General Assembly of the State of Colorado:
2 SECTION 1. Part 1 of article 22 of title 39, Colorado Revised
3 Statutes, is amended BY THE ADDITION OF THE FOLLOWING NEW
4 SECTIONS 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 39-22-122. Colorado earned income tax credit - repeal.
2 (1) FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY 1, 1999,
3 BUT PRIOR TO JANUARY 1, 2004, IF A RESIDENT INDIVIDUAL CLAIMS AN
4 EARNED INCOME TAX CREDIT ON THE RESIDENT INDIVIDUAL'S FEDERAL TAX
5 RETURN, THE RESIDENT INDIVIDUAL SHALL BE ALLOWED AN EARNED
6 INCOME TAX CREDIT AGAINST THE INCOME TAXES DUE ON THE RESIDENT
7 INDIVIDUAL'S INCOME UNDER THIS ARTICLE. THE AMOUNT OF THE CREDIT
8 SHALL BE AN AMOUNT EQUAL TO THIRTY PERCENT OF THE AMOUNT OF THE
9 FEDERAL CREDIT CLAIMED ON THE RESIDENT INDIVIDUAL'S FEDERAL TAX
10 RETURN.
11 (2) IF THE CREDIT ALLOWED UNDER SUBSECTION (1) OF THIS
12 SECTION EXCEEDS ANY INCOME TAXES OTHERWISE DUE ON THE RESIDENT
13 INDIVIDUAL'S INCOME, THE AMOUNT OF THE CREDIT NOT USED TO OFFSET
14 INCOME TAXES SHALL NOT BE CARRIED FORWARD AS A TAX CREDIT
15 AGAINST THE RESIDENT INDIVIDUAL'S SUBSEQUENT YEARS' INCOME TAX
16 LIABILITY AND SHALL BE REFUNDED TO THE RESIDENT INDIVIDUAL.
17 (3) THIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2005.
18 39-22-123. Colorado senior citizen income tax credit - repeal.
19 (1) FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY 1, 1999,
20 BUT PRIOR TO JANUARY 1, 2004, A RESIDENT INDIVIDUAL WHO IS AT LEAST
21 SIXTY-FIVE YEARS OF AGE ON ANY DAY DURING SUCH TAX YEAR SHALL BE
22 ALLOWED A CREDIT AGAINST THE INCOME TAXES DUE ON THE RESIDENT
23 INDIVIDUAL'S INCOME UNDER THIS ARTICLE. THE AMOUNT OF THE CREDIT
24 SHALL BE AS FOLLOWS:
25 (a) FOR A RESIDENT INDIVIDUAL FILING A SINGLE RETURN OR A
26 MARRIED FILING SEPARATE RETURN FOR SUCH TAX YEAR, THE CREDIT
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1 SHALL BE IN THE AMOUNT OF ONE HUNDRED DOLLARS.
2 (b) FOR TWO RESIDENT INDIVIDUALS FILING A JOINT RETURN OR A
3 RESIDENT INDIVIDUAL FILING AS A SURVIVING SPOUSE, THE CREDIT SHALL
4 BE IN THE AMOUNT OF TWO HUNDRED DOLLARS.
5 (2) IF THE CREDIT ALLOWED UNDER SUBSECTION (1) OF THIS
6 SECTION EXCEEDS ANY INCOME TAXES OTHERWISE DUE ON THE RESIDENT
7 INDIVIDUAL'S INCOME, THE AMOUNT OF THE CREDIT NOT USED TO OFFSET
8 INCOME TAXES SHALL NOT BE CARRIED FORWARD AS A TAX CREDIT
9 AGAINST THE RESIDENT INDIVIDUAL'S SUBSEQUENT YEARS' INCOME TAX
10 LIABILITY AND SHALL BE REFUNDED TO THE RESIDENT INDIVIDUAL.
11 (3) THIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2005.
12 SECTION 2. 39-22-104 (1), Colorado Revised Statutes, is
13 amended to read:
14 39-22-104. Income tax imposed on individuals, estates, and
15 trusts - single rate. (1) (a) Subject to subsection (2) of this section, with
16 respect to taxable years commencing on or after January 1, 1987, a tax of
17 five percent is imposed on the federal taxable income, as determined
18 pursuant to section 63 of the internal revenue code, of every individual,
19 estate, and trust. SUCH TAX SHALL BE IMPOSED AT THE RATE SPECIFIED IN
20 PARAGRAPH (b) OF THIS SUBSECTION (1).
21 (b) (I) FOR INCOME TAX YEARS COMMENCING ON OR AFTER
22 JANUARY 1, 1987, BUT PRIOR TO JANUARY 1, 1999, THE RATE OF TAX
23 SHALL BE FIVE PERCENT.
24 (II) FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY
25 1, 1999, BUT PRIOR TO JANUARY 1, 2004, THE RATE OF TAX SHALL BE FOUR
26 AND SEVENTY-FIVE ONE-HUNDREDTHS OF ONE PERCENT.
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1 (III) FOR INCOME TAX YEARS COMMENCING ON AND AFTER
2 JANUARY 1, 2004, THE RATE OF TAX SHALL BE FIVE PERCENT.
3 SECTION 3. 39-22-301 (1) (d) (I) (G), Colorado Revised
4 Statutes, is amended, and the said 39-22-301 (1) (d) (I) is further amended
5 BY THE ADDITION OF THE FOLLOWING NEW
6 SUB-SUBPARAGRAPHS, to read:
7 39-22-301. Corporate tax imposed. (1) (d) (I) A tax is imposed
8 upon each domestic C corporation and foreign C corporation doing
9 business in Colorado annually in an amount of the net income of such C
10 corporation during the year derived from sources within Colorado as set
11 forth in the following schedule of rates:
12 (G) For income tax years commencing on or after July 1, 1993,
13 BUT PRIOR TO JANUARY 1, 1999, five percent of the Colorado net income;
14 (H) FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY
15 1, 1999, BUT PRIOR TO JANUARY 1, 2004, FOUR AND SEVENTY-FIVE
16 ONE-HUNDREDTHS OF ONE PERCENT OF THE COLORADO NET INCOME;
17 (I) FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY
18 1, 2004, FIVE PERCENT OF THE COLORADO NET INCOME.
19 SECTION 4. Safety clause. The general assembly hereby finds,
20 determines, and declares that this act is necessary for the immediate
21 preservation of the public peace, health, and safety.