In determining whether an applicant for a state-regulated occupation is qualified to be registered, certified, or licensed, the act allows the entity with regulatory authority concerning the occupation (regulator) to consider an applicant's conviction for a crime for a 3-year period beginning on the date of conviction or the end of incarceration, whichever date is later.

If an individual's conviction is directly related to the profession or occupation for which the individual has applied for registration, certification, or licensure, the regulator may consider the conviction after the 3-year period has passed.

A regulator may only deny or refuse to renew a registration, certification, or license if the regulator determines that the applicant has not been rehabilitated and is unable to perform the duties and responsibilities of the profession or occupation without creating an unreasonable risk to public safety. An applicant's conviction for a crime does not, in and of itself, disqualify the applicant from being issued a registration, certification, or license.

The act allows an individual to petition a regulator to determine whether a criminal conviction will preclude the individual from becoming registered, certified, or licensed prior to that individual completing any other requirements for such credentialing. If a regulator determines that an individual's conviction will likely be considered, the regulator shall advise the individual of any actions the individual may take to remedy the disqualification.

The act places the burden of proof for denial of an applicant on the regulator to demonstrate that denial based on the applicant's criminal conviction directly connects to potential performance in the profession or occupation for which the applicant seeks credentialing.

APPROVED by Governor June 4, 2024

EFFECTIVE August 7, 2024
(Note: This summary applies to this bill as enacted.)

The bill requires the division of labor standards and statistics in the department of labor and employment to create and make available to employers suicide prevention education posters and notices.

Starting July 1, 2025, employers are required to display the suicide prevention education posters in their workplaces and certain employers are required to include the suicide prevention education notices in documents provided to employees.

The office of suicide prevention within the department of public health and environment must create a website to provide information about workplace suicide prevention. The bill requires the suicide prevention education posters to include a quick response (QR) code and a website link to connect to the website.
(Note: This summary applies to this bill as introduced.)

The bill creates a state sales and use tax exemption commencing on July 1, 2024, for all sales, storage, use, and consumption of college textbooks. The bill allows a county or municipality to choose to adopt the exemption by express inclusion in its sales and use tax ordinance or resolution.

(Note: This summary applies to this bill as introduced.)

Section 1 of the bill creates, beginning on January 1, 2025, and continuing indefinitely, a state sales and use tax exemption for baby and toddler products. A "baby and toddler product" is defined to include a baby crib, playpen, or play yard; a baby stroller; a baby safety gate, cabinet lock or latch, or electrical socket cover; a baby monitor; a bicycle child carrier seat, or trailer, including an adaptor or accessory; a baby exerciser, jumper, bouncer seat, or swing; a breast pump, bottle sterilizer, bottle, or nipple, pacifier, or teething ring; baby wipes; a changing table or pad; and baby and toddler clothing. Section 1 also creates a time-limited state sales and use tax exemption, or sales and use tax holiday, for back-to-school items. The tax holiday applies for 14 days beginning on January 1, 2025, and for an additional 14 days beginning on July 24, 2025. A "back-to-school item" is defined to mean an article of clothing, a bag, a school supply, a learning aid, or a personal computer or personal computer-related accessory that is purchased primarily for use by an individual who is a minor. The exemption for each item is limited by cost as follows:

• $100 for an article of clothing or a bag;
• $50 for a school supply;
• $30 for a learning aid; and
• $1,500 for a personal computer or a personal computer-related accessory.

Section 2 permits a town, city, or county to create sales and use tax exemptions that are identical to the state exemptions.
(Note: This summary applies to this bill as introduced.)

The executive director of the department of revenue (executive director) has been authorized to permit taxpayers that remit sales and use tax to the department of revenue and whose monthly tax collected is less than $300 to make returns and pay taxes at quarterly intervals. The act increases this threshold amount from $300 to $600 for returns that must be filed on or after January 1, 2025, and allows the executive director to further increase the threshold amount by rule for returns that must be filed on or after January 1, 2026.

The act prohibits home rule cities, towns, and city and counties that collect their own sales and use taxes and do not use the electronic sales and use tax simplification system administered by the department of revenue from collecting sales and use tax from a retailer that does not have physical presence in the state unless the retailer elects to collect and remit sales and use tax or enters into a voluntary collection agreement with a home rule city, town, or city and county.

For the 2024-25 state fiscal year, $17,200 is appropriated from the general fund to the department of revenue for the implementation of the act.

APPROVED by Governor April 4, 2024

EFFECTIVE August 7, 2024
(Note: This summary applies to this bill as enacted.)

For income tax years commencing on and after January 1, 2025, the bill reduces both the individual and the corporate state income tax rates from 4.40% to 4.0%. The bill also exempts the rate reductions from the existing statutory requirements that tax expenditure legislation include a tax preference performance statement in a statutory legislative declaration and repeal after a specified period of tax years.

(Note: This summary applies to this bill as introduced.)

Effective September 1, 2024, the act makes changes to Colorado's occupational credential portability program (program) relating to the spouses and dependents of military members and other qualified servicemembers serving in the United States uniformed services, including:

• In addition to military spouses already covered by the program, allowing gold star military spouses, dependents of military members, and spouses and dependents of other qualified servicemembers who are licensed, certified, registered, or enrolled in a profession or occupation (credentialed) in good standing in another state or United States territory (current state) to be credentialed in Colorado by endorsement from the current state to practice the same profession or occupation in Colorado;
• Allowing an applicant to be credentialed under the program if the applicant committed an act that would have been grounds for discipline in this state, but for which the applicant remains in good standing in the current state because the act is not grounds for discipline in the current state;
• Removing the 3-year limitation and nonrenewal provision for a military spouse's credential and allowing military spouses, gold star military spouses, military dependents, and spouses and dependents of other qualified servicemembers to obtain a renewable 6-year credential while in Colorado;
• Waiving the application and renewal fee for Colorado credentials issued to military spouses, gold star military spouses, military dependents, and spouses and dependents of other qualified servicemembers; and
• Expanding eligibility for the program to spouses and dependents of Armed Forces Reserve, Ready Reserve, National Guard members in Colorado, and spouses and dependents of other qualified servicemembers.

APPROVED by Governor April 17, 2024

EFFECTIVE September 1, 2024
(Note: This summary applies to this bill as enacted.)

The act amends the "Colorado Privacy Act" to add protections for individuals' biometric data by requiring a person that controls or processes one or more biometric identifiers (controller) to adopt a written policy that:

• Establishes a retention schedule for biometric identifiers and biometric data;
• Includes a protocol for responding to a data security incident that may compromise the security of biometric identifiers or biometric data; and
• Includes guidelines that require the deletion of a biometric identifier on or before certain dates.

With certain exceptions, a controller must make its written policy available to the public.

The act also:

• Prohibits a controller from collecting a biometric identifier unless the controller first satisfies certain disclosure and consent requirements;
• Specifies certain prohibited acts and requirements for controllers that process biometric identifiers and biometric data;
• Requires a controller to disclose to a consumer certain information concerning the collection and use of the consumer's biometric identifier;
• Restricts an employer's permissible reasons for obtaining an employee's consent for the collection of biometric identifiers; and
• Authorizes the attorney general to promulgate rules to implement the act.

APPROVED by Governor May 31, 2024

EFFECTIVE July 1, 2025
(Note: This summary applies to this bill as enacted.)

The act modifies 2 existing state income tax credits for child care expenses.One of the credits can be claimed by an individual who claims the federal credit allowed for child and dependent care expenses (federal credit). The other credit can be claimed under the same parameters as the first credit but by an individual who does not meet the minimum income threshold to be able to claim the federal credit.

The act merges the 2 state income tax credits into one credit to be claimed for income tax years commencing on and after January 1, 2026, increases the amount of the credit from 50% of the federal credit to 70% of the federal credit, and allows the credit to be claimed by a resident individual whose federal adjusted gross income is less than or equal to $60,000, annually adjusted for inflation, without regard to income limitations imposed for claiming the federal credit. The act also clarifies that the credit is for expenses related to child care and dependent care, as such expenses are qualified under the federal credit.

The act increases the amount of the state earned income tax credit (EITC or credit) that can be claimed by an individual as a percentage of the individual's federal earned income tax credit (federal credit) amount as follows:

• For the income tax year commencing on January 1, 2024, from the current level of 38% to 50%;
• For the income tax year commencing on January 1, 2025, from the current level of 25% to 35%; and
• For income tax years commencing on or after January 1, 2026, from the current level of 20% to 25%.

Additionally, after income tax year 2024, the act allows for the amount of the credit to increase to a maximum of 50% based on an estimated adjustment factor which is calculated as the forecasted compound annual growth of state revenue that is otherwise nonexempt revenue in any fiscal year in relation to state fiscal year 2024-25. For income tax year 2025, the amount of credit may be claimed at 50% of the federal credit if the estimated adjustment factor is equal to or greater than 2%. For income tax year 2026 and all subsequent income tax years, the amount of credit is increased as follows:

• If the estimated adjustment factor is equal to or greater than 3% but less than 3.18%, the credit can be claimed at 30% of the federal credit;
• If the estimated adjustment factor is equal to or greater than 3.18% but less than 3.37%, the credit can be claimed at 35% of the federal credit;
• If the estimated adjustment factor is equal to or greater than 3.37% but less than 3.56%, the credit can be claimed at 40% of the federal credit;
• If the estimated adjustment factor is equal to or greater than 3.56% but less than 3.75%, the credit can be claimed at 45% of the federal credit; and
• If the estimated adjustment factor is equal to or greater than 3.75%, the credit can be claimed at 50% of the federal credit.

The act also makes the state's corporate income tax more uniform compared to other states by replacing the current combined reporting standard with the multistate tax commission's standard. In addition, these sections modify the computation of receipts factor to make it more congruent with the unitary business principle.

APPROVED by Governor May 14, 2024

EFFECTIVE August 7, 2024
(Note: This summary applies to this bill as enacted.)

For income tax years commencing before January 1, 2025, the law allowed any individual who was 65 years of age or older at the close of a taxable year to subtract the total amount of social security benefits that the individual received from the individual's federal taxable income, to the extent those benefits were included in federal taxable income, when determining the individual's state taxable income. The act expands this subtraction to any individual who is 55 years of age or older but less than 65 years of age and whose adjusted gross income for the applicable tax year is less than or equal to $75,000 if filing individually or $95,000 if filing jointly. The act requires the department of revenue, in consultation with the state auditor, to collect information necessary to measure the effectiveness of the income tax subtraction.

APPROVED by Governor June 6, 2024

EFFECTIVE August 7, 2024
(Note: This summary applies to this bill as enacted.)

The bill prohibits a person from advertising a price for a product, good, or service that does not include all mandatory or nondiscretionary fees or charges. A violation of this prohibition is a deceptive trade practice enforceable by the attorney general or a district attorney.

The bill exempts:

• Advertisements for which a person is required to provide disclosures in compliance with certain federal or state laws or regulations or rules promulgated pursuant to those federal or state laws;
• Advertisements made in connection with the provision of workers' compensation insurance;
• Advertisements made by a licensed real estate broker;
• Air carriers; and
• Certain professions regulated by the motor vehicle dealer board.

(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)

(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

The act creates the employee ownership office (office), which was originally created administratively by the governor in 2020 as a statutory entity within the office of economic development (OED).

The act also creates a refundable income tax credit for income tax years 2025 to 2029 for up to 50% of specified costs incurred by new employee-owned businesses, not to exceed $50,000. New employee-owned businesses are defined as businesses that have been employee-owned for 7 or fewer years. The tax credit is administered by the office, which may allocate up to $1.5 million in tax credits per year. The office is required to include information on the effectiveness of the tax credit in OED's annual report to the general assembly. The act also creates the employee ownership cash fund, which is to be used by the office for the administration of the tax credit and consists of fees collected from applications for the tax credit. The tax credit and cash fund are repealed on January 1, 2035.

For the 2024-25 state fiscal year, $145,847 is appropriated from the general fund to the office of the governor for use for the employee ownership office.

APPROVED by Governor June 4, 2024

EFFECTIVE August 7, 2024
(Note: This summary applies to this bill as enacted.)

The act modifies the "Property Tax/Rent/Heat Credit Rebate" (PTC),which is available to qualifying seniors and individuals with a disability who earn income below a threshold amount and who pay real property tax, or a tax equivalent through rent, or heat or fuel expenses, or an equivalent through rent, by:

• Merging the separate statutory sections that provide the PTC for assistance in the payment of real property tax and provide the PTC for assistance in the payment of heat or fuel expenses into a single statutory section;
• Updating certain dollar values used to calculate the PTC to their current levels; and
• For tax years commencing on or after January 1, 2025, allowing the PTC only to qualifying seniors.

Qualified individuals with a disability for tax years commencing on or after January 1, 2025, are allowed an income tax credit. Eligibility with respect to disability mirrors the eligibility as it exists under current law for the PTC. The income tax credit is allowed in the following amounts:

• $1,200 for a qualified individual filing a single return with federal adjusted gross income less than or equal to $10,000 or for 2 qualified individuals, or a qualified individual and a nonqualified individual, filing a joint return with federal adjusted gross income less than or equal to $16,000;
• $1,000 for a qualified individual filing a single return with federal adjusted gross income between $10,001 and $12,500 or for 2 qualified individuals, or a qualified individual and a nonqualified individual, filing a joint return with federal adjusted gross income between $16,001 and $20,000;
• $800 for a qualified individual filing a single return with federal adjusted gross income between $12,501 and $15,000 or for 2 qualified individuals, or a qualified individual and a nonqualified individual, filing a joint return with federal adjusted gross income between $20,001 and $24,000;
• $600 for a qualified individual filing a single return with federal adjusted gross income between $15,001 and $17,500 or for 2 qualified individuals, or a qualified individual and a nonqualified individual, filing a joint return with federal adjusted gross income between $24,001 and $28,000; and
• $400 for a qualified individual filing a single return with federal adjusted gross income between $17,501 and $20,000 or for 2 qualified individuals, or a qualified individual and a nonqualified individual, filing a joint return with federal adjusted gross income between $28,001 and $32,000.

The department of revenue must adjust the amounts of the credit and the amounts of adjusted gross income annually for inflation.

An individual who is both a qualifying senior and a qualified individual with a disability and meets the eligibility requirements to claim both the income tax credit and the PTC can only claim one or the other in the same income tax year.

APPROVED by Governor June 6, 2024

EFFECTIVE August 7, 2024
(Note: This summary applies to this bill as enacted.)

For income tax years commencing on and after January 1, 2024, but before January 1, 2034, the act creates a refundable, means-tested family affordability tax credit (credit) as follows:

• A taxpayer who files a single return is allowed a credit for each eligible child of the taxpayer who is 5 years of age or younger in a base amount of $3,200, adjusted for inflation and subject to reductions based on the taxpayer's income level and state economic conditions, and is allowed a credit for each eligible child of the taxpayer who is 6 years of age or older but less than 17 years of age in an amount that is 75% of the amount allowed for children 5 years of age or younger as adjusted and subject to reductions; and
• Two taxpayers who file a joint return are allowed a credit for each eligible child of the taxpayers who is 5 years of age or younger in a base amount of $3,200, adjusted for inflation and subject to reductions based on the taxpayers' income level and state economic conditions, and are allowed a credit for each eligible child of the taxpayers who is 6 years of age or older but less than 17 years of age in an amount that is 75% of the amount allowed for children 5 years of age or younger as adjusted and subject to reductions.

For income tax years commencing on and after January 1, 2024, but before January 1, 2025, the act reduces the $3,200 amount of the credit for a taxpayer filing a single return by 6.875% for each $5000 by which the taxpayer's adjusted gross income exceeds $15,000, and reduces the $3,200 amount of the credit for two taxpayers filing a joint return by 6.875% for each $5,000 by which the taxpayers' adjusted gross income exceeds $25,000.

For income tax years commencing on and after January 1, 2025, but before January 1, 2026, if the compound annual growth of the state's nonexempt revenue from the 2024-25 fiscal year to the 2025-2026 fiscal year is projected to be at a rate that is greater than or equal to 2%, then, for a taxpayer filing a single return, the act reduces the $3,200 amount of the credit by 6.875% for each $5,000 by which the taxpayer's adjusted gross income exceeds $15,000, and, for two taxpayers filing a joint return, reduces the $3,200 amount of the credit by 6.875% for each $5,000 by which the taxpayers' adjusted gross income exceeds $25,000. If, for income tax years commencing on and after January 1, 2025, but before January 1, 2026, the compound annual growth of the state's nonexempt revenue from the 2024-25 fiscal year to the 2025-2026 fiscal year is projected to be at a rate that is less than 2%, the credit is not allowed.

For income tax years commencing on and after January 1, 2026, but before January 1, 2034, if the compound annual growth of the state's nonexempt revenue from the 2024-25 fiscal year to the applicable fiscal year is projected to be at a rate that is greater than or equal to 3.75%, then, for a taxpayer filing a single return, the act reduces the $3,200 amount of the credit by 6.875% for each $5,000 by which the taxpayer's adjusted gross income exceeds $15,000, and, for two taxpayers filing a joint return, reduces the $3,200 amount of the credit by 6.875% for each $5,000 by which the taxpayers' adjusted gross income exceeds $25,000.

For income tax years commencing on and after January 1, 2026, but before January 1, 2034, if the compound annual growth of the state's nonexempt revenue from the 2024-25 fiscal year to the applicable fiscal year is projected to be at a rate that is greater than or equal to 3.56% but less than 3.75%, then, for a taxpayer filing a single return, the act reduces the $3,200 amount of the credit by 9.06% for each $5,000 by which the taxpayer's adjusted gross income exceeds $15,000, and, for two taxpayers filing a joint return, reduces the $3,200 amount of the credit by 9.06% for 2 taxpayers filing a joint return for each $5,000 by which the taxpayers' adjusted gross income exceeds $25,000.

For income tax years commencing on and after January 1, 2026, but before January 1, 2034, if the compound annual growth of the state's nonexempt revenue from the 2024-25 fiscal year to the applicable fiscal year is projected to be at a rate that is greater than or equal to 3.37% but less than 3.56%, then, for a taxpayer filing a single return, the act reduces the $3,200 amount of the credit by 13.59% for each $5,000 by which the taxpayer's adjusted gross income exceeds $15,000, and, for 2 taxpayers filing a joint return, reduces the $3,200 amount of the credit by 13.59% for each $5,000 by which the taxpayers' adjusted gross income exceeds $25,000.

For income tax years commencing on and after January 1, 2026, but before January 1, 2034, if the compound annual growth of the state's nonexempt revenue from the 2024-25 fiscal year to the applicable fiscal year is projected to be at a rate that is greater than or equal to 3.18% but less than 3.37%, then the act reduces the amount of the credit to $2,600, adjusted for inflation, and, for a taxpayer filing a single return, reduces that amount by 19.23% for each $5,000 by which the taxpayer's adjusted gross income exceeds $15,000, and, for 2 taxpayers filing a joint return, reduces the $2,600 amount by 19.23% for each $5,000 by which the taxpayers' adjusted gross income exceeds $25,000.

For income tax years commencing on and after January 1, 2026, but before January 1, 2034, if the compound annual growth of the state's nonexempt revenue from the 2024-25 fiscal year to the applicable fiscal year is projected to be at a rate that is greater than or equal to 3% but less than 3.18%, then the act reduces the amount of the credit to $1,650, adjusted for inflation, and, for a taxpayer filing a single return, reduces that amount by 30.30% for each $5,000 by which the taxpayer's adjusted gross income exceeds $15,000, and, for 2 taxpayers filing a joint return, reduces the $1,650 amount by 30.30% for each $5,000 by which the taxpayers' adjusted gross income exceeds $25,000.

For income tax years commencing on or after January 1, 2025, the department of revenue is required to adjust the federal adjusted gross income amounts set forth in the act to reflect inflation for each income tax year in which the credit is allowed if cumulative inflation since the last adjustment, when applied to the current limits, results in an increase of at least one thousand dollars when the adjusted limits are rounded to the nearest $1,000.

For income tax years commencing on and after January 1, 2026, but before January 1, 2034, if the compound annual growth of the state's nonexempt revenue from the 2024-25 fiscal year to the applicable fiscal year is projected to be at a rate that is less than 3%, the credit is not allowed.

The credit is not considered to be income or resources for the purpose of determining eligibility for the payment of public assistance benefits and medical assistance benefits authorized under state law or for a payment made under any other publicly funded programs. The department of revenue is authorized and encouraged to develop a means of refunding the credit in 12 equal monthly refunds rather than annually.

For the 2024-225 state fiscal year, $178,491 is appropriated from the general fund to the department of revenue for the implementation of the act.

APPROVED by Governor May 31, 2024

EFFECTIVE August 7, 2024
(Note: This summary applies to this bill as enacted.)

The act creates a refundable income tax credit (credit) that is available for income tax years commencing on or after January 1, 2025, but prior to January 1, 2029, for a qualifying resident individual (individual) working in the care workforce in the amount of $1,200 for a single filer and $2,400 for 2 joint filers.

To be eligible for the credit, an individual must:

• Have an adjusted gross income of no more than $75,000 as a single filer or $100,000 as a joint filer; and
• Be employed in the care workforce as a child care worker or a qualified direct care worker.

To further the administration of the credit, the act:

• Requires the department of health care policy and financing, on or before September 30, 2025, and each September 30 thereafter, to provide the department of revenue an electronic report of the name and federal employer identification number of every long-term care employer that employs one or more direct care workers and provides services in Colorado during the calendar year;
• Requires the department of early childhood, on or before January 31, 2026, and each January 31 thereafter, to provide the department of revenue with an electronic report of child care workers eligible for the credit for the preceding calendar year; and
• Requires, on or before January 31, 2026, and each January 31 thereafter, every long-term care employer, excluding a consumer-directed care employer for which the department of health care policy and financing is required to file the return, that employed one or more direct care workers to make an information return to the executive director of the department of revenue for the preceding calendar year and requires the information return to be filed electronically. The act imposes a penalty of $500 on long-term care employers who fail to file the return on or before January 31, unless reasonable cause is shown.

For the 2024-25 state fiscal year, $47,193 is appropriated from the general fund to the division of licensing and administration in the department of early childhood for the implementation of the act.

APPROVED by Governor May 31, 2024

EFFECTIVE August 7, 2024
(Note: This summary applies to this bill as enacted.)

The act creates a pilot program for an income tax credit for owners of qualified housing developments focused on rental housing for middle-income individuals and families. Middle-income individuals and families have an annual household income between 80% and 120% of the area median income of the households of the same size in the county in which the housing development is located; except that, for rural resort counties, the annual income is between 80% and 140% of the respective area median income.

During the calendar years commencing on January 1, 2025, and ending on December 31, 2029, the owner of a qualified housing development may be allocated a credit by the Colorado housing and finance authority (CHFA). The amount of the credit is determined by CHFA. The allocation of credits must follow CHFA's published allocation plan and the aggregate amount of credits allocated in one calendar year, not including any unallocated credits from preceding years that may be allocated, cannot exceed:

• $5 million for calendar year 2025;
• $5 million for calendar year 2026;
• $10 million for calendar year 2027;
• $10 million for calendar year 2028; and
• $10 million for calendar year 2029.

The aggregate amount of any unallocated credits remaining as of December 31, 2029, is added to the amount of credits that CHFA may allocate for the state affordable housing tax credit.

The allocated credit amount may be used to offset a qualified taxpayer's income taxes each year for a period of 5 years, beginning in the year that the qualified housing development is placed in service. Although the credit may only be claimed for a 5-year period, the owner is required to provide middle-income housing in the qualified housing development for 15 years. A portion of the credit may be recaptured under certain conditions, for instance when the owner reduces the number of units serving middle-income individuals and families. In addition, the credit is allowed against insurance premium taxes for eligible taxpayers that are not subject to income taxes. A governmental or quasi-governmental entity, including the middle-income housing authority, may be allocated a credit if it owns a qualified housing development. A credit allocated to a governmental or quasi-governmental entity is subject to the same conditions, allocation rights, and recapture as a credit allocated to a qualified owner; except that a governmental or quasi-governmental entity may also transfer credits to any qualified taxpayer.

The act also requires CHFA to annually report on the middle-income housing tax credit pilot program to the general assembly, to make the report publicly available, and, as part of CFHA's final annual report, to provide certain information summarizing the overall success of the pilot program.

The middle-income housing tax credit is repealed on January 1, 2055.

APPROVED by Governor May 30, 2024

EFFECTIVE May 30, 2024
(Note: This summary applies to this bill as enacted.)

The act creates a refundable state income tax credit (incentive) to encourage enrollment in institutions of higher education. For income tax years commencing on or after January 1, 2025, but prior to January 1, 2033, the incentive is available to an eligible student who has matriculated at any public Colorado institution of higher education, including an area technical college, Colorado mountain college, or AIMS community college (institution), in the amount equal to the amount paid by or for the benefit of the eligible student in tuition and fees minus any scholarships or grants with respect to the qualifying semesters, during which up to the first 65 academic credit hours or equivalent are accumulated at an institution, excluding credits earned through concurrent enrollment, advanced placement, the international baccalaureate program, military credits, and any other credits accumulated prior to matriculation at an institution. To qualify, an eligible student must:

• Matriculate at the institution within 2 years of completion of high school graduation or an equivalent in Colorado;
• Be designated as a degree or credential seeking student for the semester or term for which an incentive is claimed;
• Qualify for in-state tuition for the semester or term for which the incentive is claimed;
• Complete a free application for federal student aid (FAFSA) or Colorado application for state financial aid (CASFA) for the semester or term for which an incentive is claimed that indicates the student's household has an adjusted gross income that is $90,000 or less; and
• Earn at least 6 credit hours or equivalent with a grade point average of 2.5 or higher for the semester or term for which the incentive is claimed.

The act requires an institution, by January 15, 2026, and every January 15 thereafter through 2033, to electronically report each eligible student for any qualifying semester or term completed during the academic year completed during the prior calendar year in a format prescribed by the department of higher education (department) with the student's tax identification number or social security number and the amount of tuition and fees paid minus any scholarship or grants for that prior calendar year. The act requires an institution to provide each eligible student with a statement containing the student's eligibility and incentive amount. The department is required to electronically report the information received from the institutions, with any corrections and additions, to the department of revenue to allow administration of the incentive.

The department, in consultation with institutions, is required to determine each institution's average percentage of state and institutional financial aid allocated to the resident student population who have a family income of $90,000 or less in each year of the 3 years prior to 2025, and each Colorado public institution of higher education is required to maintain a percentage of state and institutional financial aid to resident students who have an adjusted gross household income of $90,000 or less that is equal to or greater than the average percentage calculated. An institution that does not maintain the percentage is required to notify the department and must include in the notification a description of changes to institutional finances or the student population that prevented the institution from maintaining the percentage. On or before June 30, 2027, and each year thereafter until 2037, the department is required to submit a report to the joint budget committee and the house of representatives and senate education committees, that includes among other data, for each institution, the average percentage of state and institutional financial aid allocated to the resident student population who have a family income of $90,000 or less in the academic years 2021-2022 through 2033-34.

For the 2024-25 state fiscal year, $101,756 is appropriated from the general fund to the department of higher education for use by the Colorado commission on higher education and higher education special purpose programs to implement the act.

APPROVED by Governor May 30, 2024

EFFECTIVE August 7, 2024
(Note: This summary applies to this bill as enacted.)

The act expands the authority of the energy and carbon management commission (commission) to include the regulation of activities performed for the purpose of engaging in the injection and underground sequestration of injection carbon dioxide in pore space (geologic storage operations).

The commission may:

• Reimpose any regulatory responsibility or financial assurance obligation imposed on a person that exercises the right to control the conduct of geologic storage operations (geologic storage operator) if the geologic storage operator makes a material misrepresentation or omission that causes the commission to approve a site closure; and
• Assess and collect regulatory and permitting fees from geologic storage operators.

Current law requires the commission to promulgate rules that evaluate and address the cumulative impacts of oil and gas operations by April 28, 2024. The act changes current law by extending the deadline for the rule-making to September 30, 2024, and requiring the evaluation of cumulative impacts to address impacts from all operations regulated by the commission. Wells drilled for the exclusive purpose of obtaining subsurface data or information to support operations are not subject to a cumulative impact analysis.

The act also allows the director of the commission to hire and designate employees of the commission as administrative law judges who have the authority to administer proceedings on behalf of the commission.

Current law provides a statute of limitations of one year after the date of an alleged violation of energy and carbon management laws (violation). The act changes this statute of limitations to 3 years after the discovery of the alleged violation and provides that the 3-year statute of limitations period does not apply if information regarding the alleged violation is knowingly or willfully concealed by the alleged violator.

The act also expands the following energy and carbon management law areas to include geologic storage operations:

• Enforcement and civil penalty procedures;
• Use of the energy and carbon management cash fund by the commission;
• Mitigation of adverse environmental impacts by the commission or an operator; and
• State agency and local government authority over oil and gas development.

The act also establishes that:

• Ownership of a portion of a pore space necessary for geologic storage (sequestration estate) is vested in the owner of the overlying surface estate if the sequestration estate has not been separately severed, conveyed, or reserved;
• Any conveyance of the ownership of an overlying surface estate also conveys the grantor's ownership of any sequestration estate except in certain circumstances; and
• A conveyance of the ownership of a mineral estate does not convey the grantor's ownership in the sequestration estate unless the conveyance instrument provides for the conveyance.

Upon application of any interested person, the commission must hold a hearing and enter an order (order) providing for the formation of a unit of one or more geologic storage resources (geologic storage unit) if the commission finds that the geologic storage unit is reasonably necessary to effectuate a geologic storage project. The order must include terms and conditions that are just and reasonable and establish a plan for operations of the geologic storage unit (plan). An order is effective only if the plan has been approved by those persons that collectively own at least 75% of the geologic storage resources included in the geologic storage unit area (required approval) and the commission makes a finding in the order of the required approval.

The act also allows a local government to request that the director of the commission appoint a technical review board to assist the local government in analyzing and answering any technical questions regarding the local government's land use regulations.

The act also requires the department of public health and environment (department) to develop carbon dioxide accounting procedures for geologic storage operations. The commission must compile relevant data to support the carbon dioxide accounting procedures and work collaboratively with the department in implementing the carbon dioxide accounting procedures. The commission and the department must also work collaboratively to address air emissions from geologic storage operations.

APPROVED by Governor May 21, 2024

EFFECTIVE May 21, 2024
(Note: This summary applies to this bill as enacted.)

For income tax years commencing on or after January 1, 2025, but before January 1, 2035, section 1 of the act creates a refundable state income tax credit (tax credit) that an employer may claim if the employer employs an apprentice for at least 6 months during an income tax year and either has a registered apprenticeship program or is an employer-partner of a registered apprenticeship program. The amount of the tax credit is up to $6,300 for 6 months of employment plus up to $1,050 for each additional month of employment, for a maximum of up to $12,600 per apprentice per income tax year. An employer may not claim a credit for:

• More than 10 apprentices per income tax year;
• The same apprentice for more than 24 consecutive months; and
• An apprentice for months when the apprentice did not receive wages from the employer.

To claim a tax credit, an employer must submit an application for the reservation of the tax credit and an application to receive an income tax credit certificate to the state apprenticeship agency (SAA) in the department of labor and employment (department). The SAA shall review the applications for specified criteria to determine whether the employer qualifies for the tax credit and tax credit certificate. An employer issued a tax credit certificate must file the certificate with the employer's state income tax return.

The SAA is required to submit certain information and reports, as applicable, regarding the tax credit to the state auditor and the department of revenue. The SAA must also conduct outreach and provide technical assistance to small businesses concerning awareness of and application for the tax credit.

Section 2 ends the state income tax credit for qualified investments made in a qualified school-to-career program for income tax years after December 31, 2024.

Section 4 creates the scale-up grant program in the department to start new registered apprenticeship programs or expand existing programs in Colorado. The scale-up grant program awards grants from the money in the scale-up grant fund, which is created in the act. Eligible grant recipients include employers or entities that operate an apprenticeship program and that:

• Plan to develop and register a new registered apprenticeship program; or
• Currently offer a registered apprenticeship program and plan to expand it.

The act requires the department to collect specified data regarding the scale-up grant program and submit a report to specified committees of the general assembly.

Section 4 also creates the qualified apprenticeship intermediary grant program in the department to support entities that demonstrate expertise in connecting employers or apprenticeship program participants to registered apprenticeship programs or in convening stakeholders to develop registered apprenticeship programs. The SAA must post a list of the types of entities eligible to apply to the grant program on the SAA's website. The qualified apprenticeship intermediary grant program awards grants from the money in the qualified apprenticeship intermediary grant fund, which is created in the act. An eligible grant recipient must be a qualified apprenticeship intermediary.

The act requires the department to collect specified data regarding the qualified apprenticeship intermediary grant program and submit a report to specified committees of the general assembly.

On July 1, 2024, the state treasurer shall transfer from the general fund $2 million to the scale-up grant fund and $2 million to the qualified apprenticeship intermediary grant fund.

For the 2024-25 state fiscal year, the following amounts are appropriated to the department for use by the office of future of work to implement the act:

• $103,515 from the general fund;
• $666,666 from the scale-up grant fund; and
• $666,667 from the qualified apprenticeship intermediary grant fund.

APPROVED by Governor May 10, 2024

EFFECTIVE May 10, 2024
(Note: This summary applies to this bill as enacted.)

The act alters the name, membership, and issues of study of the task force for the consideration of facial recognition services to establish the artificial intelligence impact task force (task force). The membership of the task force includes 26 members who, on or before August 1, 2024, will be appointed by the governor, the president of the senate, the minority leader of the senate, the speaker of the house of representatives, and the minority leader of the house of representatives. Members include individuals that represent various organizations, communities, governmental entities, academia, and businesses related to the artificial intelligence and biometric technology industry. There are 4 legislative members of the task force.

The issues of study for the task force are updated to include a broad approach to artificial intelligence technology, automated decision systems, and biometric technology. The task force shall consider issues related to:

• The definition of key terms, such as "artificial intelligence system" and "automated decision system" and types of artificial intelligence systems or automated decision systems that any state legislation or policy should cover;
• Establishing notice and disclosure requirements for companies that use artificial intelligence systems and automated decision systems;
• Creating a code of conduct or best practices for evaluating the ethical and equitable impact of using artificial intelligence systems and automated decision systems;
• Developing recommendations for how to protect disproportionately impacted communities and workers from algorithmic discrimination, including clear quantitative metrics by which to measure, assess, monitor, and prevent algorithmic discrimination;
• Developing recommendations for how the state can effectively govern artificial intelligence systems and automated decision systems; and
• Developing recommendations related to the use of facial recognition services and biometric technology.

On or before February 1, 2025, the task force must submit a report to the joint technology committee and the governor's office that summarizes the findings and policy recommendations related to the task force's issues of study. The task force must meet at least 5 times between September 1, 2024, and February 1, 2025, and may meet as necessary after the task force submits the report. The task force is repealed September 1, 2027, and the task force is scheduled for sunset review prior to repeal.

APPROVED by Governor June 6, 2024

EFFECTIVE June 6, 2024
(Note: This summary applies to this bill as enacted.)

A qualified intermediary is a charitable organization that collects charitable contributions from donors and forwards the contributions to charitable recipient organizations. The act authorizes a taxpayer to make a charitable contribution for which the taxpayer may claim a state income tax credit to a charitable recipient organization through a qualified intermediary that forwards the contribution to the charitable recipient organization, rather than making the contribution directly to the charitable recipient organization, without losing the right to claim the credit.

For the Colorado homeless contribution tax credit, the act requires a tax credit certificate to include a unique certificate identification number and the last 4 digits, rather than all digits, of the taxpayer's social security number or the taxpayer's full federal employer identification number.

For the 2024-25 state fiscal year, $41,769 is appropriated from the general fund to the department of revenue and $5,000 is appropriated from the general fund to the department of local affairs for implementation of the act.

APPROVED by Governor June 7, 2024

EFFECTIVE August 7, 2024
(Note: This summary applies to this bill as enacted.)

The act requires local taxing jurisdictions, which are limited to jurisdictions for which the department of revenue does not collect, administer, and enforce a local lodging tax, to apply the same reporting requirements or standards to an accommodation's intermediary as to a marketplace facilitator that is obligated to collect and remit a local lodging tax.

The act prohibits local taxing jurisdictions from requiring additional reporting information from an accommodation's intermediary. The act also prohibits a local taxing jurisdiction that has passed an applicable marketplace facilitator law from auditing a marketplace facilitator for sales facilitated by the marketplace at any time other than when the marketplace facilitator is filing tax returns with the local taxing jurisdiction.

The act does not prohibit a local taxing jurisdiction from requesting information maintained by an accommodation's intermediary that is in connection with an audit related to a local lodging tax or from requesting and obtaining additional information or data from a marketplace facilitator or accommodation's intermediary to be provided on a voluntary basis or prohibit a home rule municipality, for purposes unrelated to the administration of local taxes, from passing an ordinance regulating a marketplace facilitator or an accommodation's intermediary, including an ordinance governing the issuance of information or data by a marketplace facilitator or accommodation's intermediary to the home rule city.

APPROVED by Governor April 19, 2024

EFFECTIVE January 1, 2025
(Note: This summary applies to this bill as enacted.)

Under current law, the department of revenue (department) administers, collects, and enforces the local sales or use tax that a statutory local government or a special district imposes and, if requested, administers, collects, and enforces any such tax that a home rule jurisdiction imposes. The statutes that govern the administration, collection, and enforcement of these local sales or use taxes are located in multiple titles of the Colorado Revised Statutes. The act revises, modernizes, and harmonizes the separate statutes that govern the state administration of local sales or use tax by creating new parts 2 and 3 in article 2 of title 29. In general, the act makes clear that the department collects, administers, and enforces a local government sales or use tax in the same manner as it collects, administers, and enforces the state sales tax.

The act:

• Requires a statutory local government, special district, or requesting home rule jurisdiction that imposes a new sales or use tax, makes a change to its existing sales or use tax, or changes its geographical boundaries by ordinance, resolution, or election to provide the department written notice within specified deadlines and establishes the applicability dates for such events;
• Requires each statutory local government, special district, and requesting home rule jurisdiction to designate one or more liaisons to coordinate with the department regarding the collection of its sales or use tax;
• Establishes a dispute resolution process when the local sales or use tax that is administered, collected, and enforced by the department is paid erroneously to the state or to the wrong statutory local government, special district, or home rule jurisdiction;
• Makes clear that a vendor who uses the department's geographic information system (GIS) database to determine the jurisdictions to which statutory local government, special district, or requesting home rule jurisdiction tax is owed is held harmless for any tax, charge, or fee liability that would otherwise be due solely as a result of an error or omission in the GIS database data;
• Clarifies that a statutory local government, special district, or requesting home rule jurisdiction may allow a retailer that collects and remits its sales or use tax to retain a percentage of the amount remitted to cover the vendors' expenses in collecting and remitting the statutory local government, special district, or requesting home rule jurisdiction's sales or use tax, but specifies that the statutory local government, special district, or requesting home rule jurisdiction may not impose a limit on the amount retained;
• Modifies the relief available under the provisions for local dispute resolution for sales or use taxes asserted by the local government to reflect the availability of the department's GIS database for accurately sourcing sales; and
• Makes conforming amendments for the collection, administration, enforcement, and distribution of statutory local government, special district, and requesting home rule jurisdiction sales or use taxes.

APPROVED by Governor May 1, 2024

EFFECTIVE July 1, 2025
(Note: This summary applies to this bill as enacted.)

Current law requires the department of higher education (department) and higher education institutions to develop a framework for evaluating the quality of nondegree credentials. The act formally recognizes the resulting quality and in-demand nondegree credentials framework (framework) as the primary tool for assessing the quality of nondegree credentials offered in the state.

The act requires the department to collaborate with various agencies to ensure the effective integration of the framework within the state's education and workforce systems. Beginning January 1, 2026, and annually thereafter, the act requires the department to evaluate nondegree credentials offered through state-recognized programs to ensure the credentials meet the framework's quality standards. Beginning January 1, 2026, and annually thereafter, the department shall supply a list of nondegree credential programs that meet the framework's quality standards for inclusion in the Colorado talent report and in a credential registry endorsed by the state.

The department shall engage state agencies, educational institutions, international organizations, industry associations, and other stakeholders to study and make recommendations about the adoption of the international standard classification of education (ISCED) as the state's standard framework for classifying nondegree credentials and ISCED's wider application in the state's education and workforce systems. The recommendations must include a process for assigning ISCED equivalency levels to nondegree credentials included in stackable credential pathways and apprenticeship programs. The act requires the department to report its findings and recommendations on or before July 31, 2025.

Current law requires the department to create stackable credential pathways in growing industries. The act requires the department to assign appropriate ISCED equivalency levels to the stackable credential pathways on or before July 31, 2025.

Beginning January 1, 2026, and annually thereafter, the act requires the office of future of work to coordinate with various agencies to determine ISCED equivalency levels for each apprenticeship program registered on and after July 31, 2025. The office of future of work shall then determine ISCED equivalency levels for each apprenticeship program registered before July 31, 2025.

For the 2024-25 state fiscal year, the act appropriates $124,287 from the general fund to the department of higher education for use by the Colorado commission on higher education and higher education special purpose programs. For the 2024-25 state fiscal year, the act appropriates $30,000 from the general fund to the department of labor and employment for use by the office of future of work.

APPROVED by Governor May 10, 2024

EFFECTIVE August 7, 2024
(Note: This summary applies to this bill as enacted.)

On and after February 1, 2026, the act requires a developer of a high-risk artificial intelligence system (high-risk system) to use reasonable care to protect consumers from any known or reasonably foreseeable risks of algorithmic discrimination in the high-risk system. There is a rebuttable presumption that a developer used reasonable care if the developer complied with specified provisions in the act, including:

• Making available to a deployer of the high-risk system a statement disclosing specified information about the high-risk system;
• Making available to a deployer of the high-risk system information and documentation necessary to complete an impact assessment of the high-risk system;
• Making a publicly available statement summarizing the types of high-risk systems that the developer has developed or intentionally and substantially modified and currently makes available to a deployer or other developer and how the developer manages any known or reasonably foreseeable risks of algorithmic discrimination that may arise from the development or intentional and substantial modification of each of these high-risk systems; and
• Disclosing to the attorney general and known deployers or other developers of the high-risk system any known or reasonably foreseeable risks of algorithmic discrimination, within 90 days after the discovery or receipt of a credible report from the deployer, that the high-risk system has caused or is reasonably likely to have caused.

The act also, on and after February 1, 2026, requires a deployer of a high-risk system to use reasonable care to protect consumers from any known or reasonably foreseeable risks of algorithmic discrimination in the high-risk system. There is a rebuttable presumption that a deployer used reasonable care if the deployer complied with specified provisions in the act, including:

• Implementing a risk management policy and program for the high-risk system;
• Completing an impact assessment of the high-risk system;
• Annually reviewing the deployment of each high-risk system deployed by the deployer to ensure that the high-risk system is not causing algorithmic discrimination;
• Notifying a consumer of specified items if the high-risk system makes, or will be a substantial factor in making, a consequential decision concerning the consumer;
• Providing a consumer with an opportunity to correct any incorrect personal data that a high-risk system processed in making a consequential decision;
• Providing a consumer with an opportunity to appeal, via human review if technically feasible, an adverse consequential decision concerning the consumer arising from the deployment of a high-risk system;
• Making a publicly available statement summarizing the types of high-risk systems that the deployer currently deploys, how the deployer manages any known or reasonably foreseeable risks of algorithmic discrimination that may arise from deployment of each of these high-risk systems, and the nature, source, and extent of the information collected and used by the deployer; and
• Disclosing to the attorney general the discovery of algorithmic discrimination, within 90 days after the discovery, that the high-risk system has caused.

A person doing business in this state, including a deployer or other developer, that deploys or makes available an artificial intelligence system that is intended to interact with consumers must ensure disclosure to each consumer who interacts with the artificial intelligence system that the consumer is interacting with an artificial intelligence system.

The act does not restrict a developer's, deployer's, or other person's ability to engage in specified activities, including:

• Complying with federal, state, or municipal laws, ordinances, or regulations;
• Cooperating with and conducting specified investigations;
• Taking immediate steps to protect an interest that is essential for the life or physical safety of a consumer;
• Conducting and engaging in specified research activities; and
• Effectuating a product recall or repairing technical errors that impair product functionality.

The act provides an affirmative defense for a developer, deployer, or other person if:

• The developer, deployer, or other person involved in a potential violation is in compliance with a nationally or internationally recognized risk management framework for artificial intelligence systems that the act or the attorney general designates; and
• The developer, deployer, or other person takes specified measures to discover and correct violations of the act.

An insurer, a fraternal benefit society, or a developer of an artificial intelligence system used by an insurer is in full compliance with the act if the entity is subject to specified laws governing insurers' use of external consumer data and information sources, algorithms, and predictive models and rules adopted by the commissioner of insurance.

A bank, out-of-state bank, credit union chartered by the state of Colorado, federal credit union, out-of-state credit union, or any affiliate or subsidiary thereof, is in full compliance with the act if the entity is subject to examination by a state or federal prudential regulator under any published guidance or regulations that apply to the use of high-risk systems and the guidance or regulations meet criteria specified in the act.

The act grants the attorney general rule-making authority to implement, and exclusive authority to enforce, the requirements of the act. A person who violates the act engages in a deceptive trade practice pursuant to the "Colorado Consumer Protection Act".

APPROVED by Governor May 17, 2024

EFFECTIVE May 17, 2024
(Note: This summary applies to this bill as enacted.)

If the state exceeds its constitutional fiscal year spending limit, it is required by the Taxpayer's Bill of Rights (TABOR) to refund the excess state revenues (TABOR refunds). The act concerns the 4 TABOR refund mechanisms: a reimbursement to counties for lost property tax revenue, an income tax rate reduction, a sales and use tax rate reduction, and a sales tax refund.

The first mechanism through which excess state revenues are refunded is a reimbursement paid to counties for allocation to local governments to offset the reduction in property taxes resulting from property tax exemptions for qualifying seniors, veterans with disabilities, and spouses of veterans who died in the line of duty or as a result of a service-related injury or disease (homestead exemptions). Additionally, for property tax years commencing on or after January 1, 2024, the reimbursement to local governments to offset the reduction in property taxes resulting from the newly reduced valuation for assessment of qualified-senior primary residences created in Senate Bill 24-111, concerning a reduction in the valuation for assessment of qualified-senior primary residence real property, joins the homestead exemptions reimbursement as the first TABOR refund mechanism.

The temporary income tax rate reduction is active for income tax years 2024 through 2034. To refund excess state revenues from fiscal year 2023-24, the income tax rate for income tax year 2024 is temporarily reduced from 4.40% to 4.25%. After that year, if the amount of excess state revenues exceeds the projected total amount of TABOR refunds issued as reimbursement to counties for the homestead exemptions and the qualified-senior primary residence valuation reductions, then the state individual income tax rate is temporarily reduced by the following percentages according to the total amount of excess state revenues remaining after the homestead exemptions reimbursement and the qualified-senior primary residence reimbursement are paid (remaining excess state revenues):

• If the remaining excess state revenues are above $300 million but less than or equal to $500 million, the income tax rate is temporarily reduced by 0.04%;
• If the remaining excess state revenues are above $500 million but less than or equal to $600 million, the income tax rate is temporarily reduced by 0.07%;
• If the remaining excess state revenues are above $600 million but less than or equal to $700 million, the income tax rate is temporarily reduced by 0.09%;
• If the remaining excess state revenues are above $700 million but less than or equal to $800 million, the income tax rate is temporarily reduced by 0.11%;
• If the remaining excess state revenues are above $800 million but less than or equal to $1 billion, the income tax rate is temporarily reduced by 0.12%;
• If the remaining excess state revenues are above $1 billion but less than or equal to $1.5 billion, the income tax rate is temporarily reduced by 0.13%; and
• If the remaining excess state revenues are above $1.5 billion, the income tax rate is temporarily reduced by 0.15%.

The sales and use tax rate reduction refund mechanism is active for fiscal years 2024-25 to 2033-34. Under this mechanism, if the amount of remaining excess state revenues is greater than $1.5 billion, as annually adjusted by a percentage equal to the percentage of allowable increase in state fiscal year spending, and exceeds the projected total amount of TABOR refunds issued as reimbursement to counties for the homestead exemptions and the qualified-senior primary residence valuation reductions, plus refunds issued through the temporary income tax rate reduction, then the state sales and use tax rates are temporarily reduced by 0.13%.

Under the sales tax refund mechanism, all qualified individuals receive an identical refund amount unless the amount of excess state revenues to be refunded would make that identical refund exceed a certain threshold, in which case the excess state revenues are instead refunded through a 6-tier refund mechanism based on the qualified individual's adjusted gross income. The identical refund amount above which the 6-tier mechanism is triggered is tied to annual federal internal revenue service calculations of sales tax paid in the state by family size and income level; except that, if, by September 1 of any year, the executive director of the department of revenue has not received advice from the internal revenue service that such an identical refund is regarded as a refund of sales tax and not as an accession to wealth, the identical refund threshold remains the existing rate of $15. An individual may claim the sales tax refund by filing an income tax return or a specified assistance grant application by October 15 of the calendar year following the taxable year for which the refund is being claimed.

Whether the TABOR refund mechanisms are triggered and, if so, how many of the mechanisms are triggered depends on the amount of excess state revenues remaining after reimbursement to counties for the homestead exemptions and the qualified-senior primary residence valuation reductions as follows:

• If remaining excess state revenues are less than or equal to $300 million, TABOR refunds are distributed only through the tiered or flat sales tax refund mechanism;
• If remaining excess state revenues are greater than $300 million but less than or equal to $1.5 billion, TABOR refunds are distributed first through the income tax rate reduction and then through the tiered or flat sales tax refund mechanism; and
• If remaining excess state revenues are greater than $1.5 billion, TABOR refunds are distributed first through the income tax rate reduction, next through the sales and use tax rate reduction, and finally through the tiered or flat sales tax refund mechanism.

If there are not sufficient excess state revenues to pay the full amount of an income tax rate reduction refund mechanism or the sales and use tax rate reduction refund mechanism, then the affected refund mechanism is not triggered.

The act also repeals statutory sections related to TABOR refund mechanisms that are no longer applicable, including the 4-tier sales tax refund mechanism to refund excess revenues from fiscal year 1997-98.

For the 2024-25 state fiscal year, $59,443 is appropriated from the general fund to the department of revenue for personal services and tax administration IT system support.

APPROVED by Governor May 14, 2024

PORTIONS EFFECTIVE May 14, 2024

PORTIONS EFFECTIVE August 7, 2024
(Note: This summary applies to this bill as enacted.)