Amendments for HB25-1296
House Journal, April 22
31 HB25-1296 be amended as follows, and as so amended, be referred to
32 the Committee on Appropriations with favorable
33 recommendation:
34
35 Amend printed bill, strike everything below the enacting clause and
36 substitute:
37
38 "SECTION 1. Legislative declaration. (1) The general
39 assembly finds and declares that:
40 (a) (I) House Bill 24-1314 substantially modified the tax credit for
41 qualified costs incurred in the preservation of historic structures by,
42 among other things, expanding the amount of the tax credit available to
43 taxpayers;
1314 44 (II) As part of modifying the tax expenditure, House Bill 24-
45 also removed the 5% increase in the percentage of rehabilitation expenses
46 incurred in a disaster area for the rehabilitation of a residential structure,
47 but not a commercial structure, that are considered in determining the
48 amount of the tax expenditure;
49 (III) This act further modifies the tax expenditure by removing the
50 5% increase in the percentage of rehabilitation expenses incurred in a
51 rehabilitation in a disaster area for the rehabilitation of a commercial
52 structure that are considered in determining the amount of the tax
53 expenditure;
54
1 (IV) The primary purpose of the modification of this tax
2 expenditure is to decrease administrative burden by aligning the treatment
3 of expenses incurred in rehabilitating residential and commercial historic
4 structures; and
5 (V) The modification of this tax expenditure will cause only a de
6 minimis revenue gain that is incidental to the primary purpose of
7 modifying the tax expenditure;
8 (b) (I) One of the five primary categories of sales that are subject
9 to state sales tax is intrastate telephone and telegraph services;
10 (II) Interstate telephone and telegraph services are not subject to
11 state sales tax;
12 (III) Unlike Colorado, twenty-eight states subject interstate
13 telephone and telegraph services to state sales tax if at least one of the
14 nodes of those services is in the state levying the sales tax;
15 (IV) Like the state, many home rule municipalities in Colorado
16 impose sales tax on intrastate telephone and telegraph services, meaning
17 that some telephone and telegraph services are taxed while others are not;
18 (V) The primary purpose of repealing this tax expenditure is to
19 further resolve taxpayer confusion and decrease administrative burden by
20 repealing the sales tax exemption to make it clear that all telephone and
21 telegraph services are subject to sales tax; and
22 (VI) The repeal of this tax expenditure will cause only a de
23 minimis revenue gain that is incidental to the primary purpose of
24 repealing the tax expenditure;
25 (c) (I) The purpose of the business personal property tax income
26 tax credit is to minimize the negative impact of the business personal
27 property tax on businesses;
2024 28 (II) As referenced in the office of the state auditor's
29 evaluation of the business personal property tax income tax credit,
30 Colorado also exempts businesses with business personal property below
31 a dollar threshold from filing and paying the tax altogether. That
32 threshold is currently $52,000. Only twelve other states have some type
33 of exemption for business personal property. Unlike Colorado, no state
34 has both an exemption and an income tax credit for business personal
35 property taxes paid.
36 (III) The office of the state auditor's 2024 evaluation of the
37 business personal property tax income tax credit indicated that less than
38 1% of business personal property taxpayers in the state claim the income
39 tax credit and many of those credits were claimed erroneously or were
40 miscalculated, suggesting that the cost of administering the income tax
41 credit is larger than its benefit to taxpayers;
42 (IV) Taxpayers can already deduct property taxes as ordinary and
43 necessary business expenses on their federal income tax returns, which
44 also reduces their state tax liability, meaning that the business personal
45 property tax income tax credit is partially duplicative; and
46 (V) Therefore, the purpose of repealing the business personal
47 property tax income tax credit is to reduce administrative burden and
48 increase administrative efficiency by removing a duplicative tax
49 expenditure that is rarely being claimed. The repeal of this tax
50 expenditure will only cause a de minimis revenue gain that is incidental
51 to the primary purpose of repealing the tax expenditure.
52 (d) (I) The purpose of the enterprise zone investment tax credit,
53 which awards a tax credit in proportion to the amount of a taxpayer's
54 investment within certain areas of Colorado, is to incentivize the
55 formation of businesses and the creation of jobs within economically
56 distressed parts of Colorado;
2020 1 (II) As referenced in the office of the state auditor's
2 evaluation on the enterprise zone investment tax credit, most businesses
3 that currently claim the enterprise zone investment tax credit are
4 inherently highly location-dependent and therefore are not as incentivized
5 or disincentivized by a tax expenditure that rewards investment within
6 certain areas of Colorado;
7 (III) The purpose of limiting the amount of, and who may qualify
8 for, the enterprise zone investment tax credit is to narrow the scope of the
9 tax expenditure so that it will achieve its original purpose of incentivizing
10 the formation of businesses and the creation of jobs within economically
11 distressed parts of Colorado; and
12 (IV) The modification of this enterprise zone investment tax credit
13 will cause only a de minimis revenue gain that is incidental to the primary
14 purpose of modifying the enterprise zone investment tax credit to better
15 achieve its original purpose; and
16 (e) Overall, the purpose of all of the modifications to tax
17 expenditures in this House Bill 25-1296 is to better align the tax
18 expenditures with the general assembly's intent in enacting these tax
19 expenditures, to improve administrative efficiency, to reduce
20 administrative burden, and to conform Colorado's tax code with
21 provisions commonly used in other states so that Colorado is less of an
22 outlier around the country in how taxpayers compute their taxes owed.
23 Any revenue gained through the modifications to tax expenditures in this
24 House Bill 25-1296, from modifications that narrow or expand tax
25 expenditures, is clearly de minimis and incidental.
26 (f) Therefore, consistent with the Colorado supreme court's
27 holding in TABOR Found. v. Reg'l Transp. Dist., 2018 CO 29, that
28 legislation that causes only an incidental and de minimis tax revenue
29 increase does not amount to a new tax or a tax policy change that requires
30 voter approval in advance under section 20 of article V of the state
31 constitution, the modifications to tax expenditures in this act are neither
32 new taxes nor tax policy changes that require voter approval.
33 SECTION 2. In Colorado Revised Statutes, 25-1.5-106, amend
34 (16)(a) as follows:
35 25-1.5-106. Medical marijuana program - powers and duties
36 of state health agency - rules - medical review board - medical
37 marijuana program cash fund - subaccount - created - "Ethan's
38 Law" - definitions - repeal. (16) Fees. (a) The state health agency may
39 collect fees from patients who, pursuant to section 14 of article XVIII of
40 the state constitution or subsection (9) of this section, apply to the medical
41 marijuana program for a registry identification card for the purpose of
42 offsetting the state health agency's direct and indirect costs of
43 administering the program. The amount of the fees shall be set by rule of
44 the state health agency. The amount of the fees set pursuant to this section
45 shall reflect the actual direct and indirect costs of the state licensing
46 authority in the administration and enforcement of this article so that the
47 fees avoid exceeding the statutory limit on uncommitted reserves in
48 administrative agency cash funds as set forth in section 24-75-402 (3).
49 The state health agency shall not assess a medical marijuana registry
50 application fee to an applicant who demonstrates, pursuant to a copy of
51 the applicant's state tax return certified by the department of revenue OR
52 A COPY OF THE APPLICANT'S FEDERAL TAX RETURN RECEIVED FROM THE
53 INTERNAL REVENUE SERVICE, that the applicant's income does not exceed
54 one hundred eighty-five percent of the federal poverty line, adjusted for
1 family size. All fees collected by the state health agency through the
2 medical marijuana program shall be transferred to the state treasurer who
3 shall credit the same to the medical marijuana program cash fund, which
4 fund is hereby created.
5 SECTION 3. In Colorado Revised Statutes, 10-3-209, add (6)(d)
6 as follows:
7 10-3-209. Tax on premiums collected - exemptions - penalties
8 - filing system - division to contract with third parties - rules - repeal.
9 (6) (d) IN SUBMITTING TAXES, PENALTIES, FINES, FEES, AND ASSOCIATED
10 FILINGS REQUIRED UNDER THIS SECTION TO THE DIVISION, AN INSURANCE
11 COMPANY SHALL IDENTIFY THE TOTAL ANNUAL DOLLAR AMOUNT OF
12 PREMIUMS COLLECTED OR CONTRACTED FOR ON POLICIES OR CONTRACTS
13 OF INSURANCE COVERING PROPERTY OR RISKS IN COLORADO DURING THE
14 PREVIOUS CALENDAR YEAR FROM ENTITIES THAT ARE EXEMPT FROM
15 TAXATION PURSUANT TO SECTION 10-3-209 (1)(d)(IV).
16 SECTION 4. In Colorado Revised Statutes, 39-21-113, add (37)
17 as follows:
18 39-21-113. Reports and returns - rule - repeal.
19 (37) NOTWITHSTANDING THE PROVISIONS OF THIS SECTION, THE
20 EXECUTIVE DIRECTOR MAY PROVIDE TO THE DEPARTMENT OF EARLY
21 CHILDHOOD SUCH DETAILED TAXPAYER INFORMATION PERTINENT TO A
22 CLAIM FOR AN INCOME TAX CREDIT FOR AN EARLY CHILDHOOD EDUCATOR
23 PURSUANT TO SECTION 39-22-547, AND SUCH DETAILED TAXPAYER
24 INFORMATION PERTINENT TO A CLAIM FOR AN INCOME TAX CREDIT FOR A
25 CARE WORKER PURSUANT TO SECTION 39-22-566. ANY INFORMATION
26 PROVIDED PURSUANT TO THIS SUBSECTION (37) MUST REMAIN
27 CONFIDENTIAL, AND ALL PERSONS ARE SUBJECT TO THE LIMITATIONS
28 SPECIFIED IN SUBSECTION (4) OF THIS SECTION AND THE PENALTIES
29 SPECIFIED IN SUBSECTION (6) OF THIS SECTION.
30 SECTION 5. In Colorado Revised Statutes, 39-22-104, amend
31 (3)(t); and add (3)(u) as follows:
32 39-22-104. Income tax imposed on individuals, estates, and
33 trusts - single rate - report - tax preference performance statement
34 - legislative declaration - definitions - repeal. (3) There shall be added
35 to the federal taxable income:
36 (t) For income tax years commencing on or after January 1, 2025,
37 an amount equal to the amount of employer contribution that an employee
38 forfeits pursuant to section 39-22-558 (3)(c) and that the taxpayer had
39 previously subtracted from the taxpayer's federal taxable income pursuant
40 to subsection (4)(bb) of this section; AND
41 (u) THE AMOUNT OF ANY OVERTIME COMPENSATION EXCLUDED OR
42 DEDUCTED FROM FEDERAL GROSS INCOME.
43 SECTION 6. In Colorado Revised Statutes, 39-22-509, amend
44 (2)(d) as follows:
45 39-22-509. Credit against tax - employer expenditures for
46 alternative transportation options for employees - legislative
47 declaration - definitions - repeal. (2) As used in this section, unless the
48 context otherwise requires:
49 (d) "Local government" means any home rule city, town, COUNTY
50 or city and county, or AND ANY statutory city, or town, OR COUNTY.
51 SECTION 7. In Colorado Revised Statutes, 39-22-514.5, amend
52 (8)(c)(III) introductory portion as follows:
53
1 39-22-514.5. Tax credit for qualified costs incurred in
2 preservation of historic structures - commercial historic preservation
3 tax credit program cash fund - tax preference performance statement
4 - legislative declaration - short title - definitions. (8) Deadline for
5 incurring specified amount of estimated costs of rehabilitation - proof
6 of compliance - audit of cost and expense certification - issuance of
7 tax credit certificate - commercial structures. (c) Notwithstanding
8 subsection (8)(b) of this section:
9 (III) FOR INCOME TAX YEARS COMMENCING PRIOR TO JANUARY 1,
10 2030, AND FOR APPLICATIONS SUBMITTED PURSUANT TO SUBSECTION (5)
11 OF THIS SECTION PRIOR TO JANUARY 1, 2026, with respect to a certified
12 historic structure that is a qualified commercial structure that is located
13 in an area that the president of the United States has determined to be a
14 major disaster area under section 102 (2) of the federal "Robert T.
15 Stafford Disaster Relief and Emergency Assistance Act", 42 U.S.C. sec.
16 5121 et seq., or that is located in an area that the governor has determined
17 to be a disaster area under the "Colorado Disaster Emergency Act", part
18 7 of article 33.5 of title 24, the tax credit amounts specified in subsections
19 (8)(b)(I) and (8)(b)(II) of this section must be increased as follows for an
20 application that is filed within six years after the disaster determination:
21 SECTION 8. In Colorado Revised Statutes, 39-22-517, amend
22 (1), (2), and (4) as follows:
23 39-22-517. Tax credit for child care center investments -
24 repeal. (1) With respect to taxable years commencing on or after January
25 1, 1992, and prior to January 1, 2026 JANUARY 1, 2029, there is allowed
26 to any person operating a child care center licensed pursuant to section
27 26-6-905 or 26.5-5-309, family child care home licensed pursuant to
28 section 26.5-5-309, or foster care home licensed pursuant to section
29 26-6-905 a credit against the tax imposed by this article 22 in the amount
30 of twenty percent of the taxpayer's annual investment in tangible personal
31 property to be used in such child care center, family child care home, or
32 foster care home.
33 (2) With respect to taxable years commencing on or after July 1,
34 1992, and prior to January 1, 2026 JANUARY 1, 2029, there is allowed to
35 any sole proprietorship, partnership, limited liability corporation,
36 subchapter S corporation, or regular corporation that provides child care
37 facilities that are incidental to their business and are licensed pursuant to
38 section 26-6-905 or 26.5-5-309 for the use of its employees a credit
39 against the tax imposed by this article 22 in the amount of ten percent of
40 the taxpayer's annual investment in tangible personal property to be used
41 in such child care facilities.
2033 42 (4) This section is repealed, effective December 31,
43 DECEMBER 31, 2036.
44 SECTION 9. In Colorado Revised Statutes, 39-22-537.5, amend
45 (3)(a); and add (5) as follows:
46 39-22-537.5. Credit for personal property taxes paid -
47 legislative declaration - definitions - repeal. (3) (a) For income tax
48 years commencing on or after January 1, 2019, BUT BEFORE JANUARY 1,
49 2026, a taxpayer is allowed a credit against the tax imposed by this article
50 22 equal to the property tax paid in Colorado during the income tax year
51 on up to eighteen thousand dollars of the total actual value of the
52 taxpayer's personal property.
53 (5) THIS SECTION IS REPEALED, EFFECTIVE DECEMBER 31, 2036.
54
1 SECTION 10. In Colorado Revised Statutes, 39-22-544, amend
2 (4)(c) as follows:
3 39-22-544. Credit against tax - qualifying seniors - creation -
4 legislative declaration - definitions - repeal. (4) (c) (I) For the income
5 tax year commencing on January 1, 2022, notwithstanding subsections
6 (4)(a) and (4)(b) of this section, a taxpayer who also qualifies for a grant
7 under article 31 of this title 39 during calendar year 2022 is eligible to
8 receive the full credit without an income-based reduction that otherwise
9 applies for the taxpayer under subsection (4)(a) or (4)(b) of this section.
10 (II) THIS SUBSECTION (4)(c) IS REPEALED, EFFECTIVE DECEMBER
11 31, 2026.
12 SECTION 11. In Colorado Revised Statutes, 39-22-566, amend
13 (2)(j), (2)(k), and (2)(l) as follows:
14 39-22-566. Qualified care worker tax credit - tax preference
15 performance statement - legislative declaration - definitions - repeal.
16 (2) As used in this section, unless the context otherwise requires:
17 (j) "Informal family friend or neighbor child care worker" means
18 an individual described in section 26.5-5-304 (1)(f) who provides care for
19 children other than their own who are five years of age or younger,
20 EXCEPT THAT AN INFORMAL FAMILY FRIEND OR NEIGHBOR CHILD CARE
21 WORKER IS NOT REQUIRED TO PROVIDE CARE IN THE INDIVIDUAL'S
22 PERMANENT PLACE OF RESIDENCE.
23 (k) "Licensed early childhood education program" means an early
24 childhood education program, as defined in section 26.5-2-202 (3), that
25 held a valid license issued pursuant to part 3 of article 5 of title 26.5, for
26 at least six months during the income tax year.
27 (l) "Licensed family child care home" means a family child care
28 home, as defined in section 26.5-5-303 (7), that held a valid license issued
29 pursuant to part 3 of article 5 of title 26.5, for at least six months during
30 the income tax year.
31 SECTION 12. In Colorado Revised Statutes, 39-22-604, amend
32 (3)(a), (3)(b), (4)(b), (5), (6)(a), (8), (10), (13), (16)(a), (16)(b)(I), and
33 (20) as follows:
34 39-22-604. Withholding tax - requirement to withhold - tax
35 lien - exemption from lien - annual statement - notice - definitions -
36 repeal. (3) (a) (I) Every employer making payment of wages shall deduct
37 and withhold from wages an amount measured by a percentage or
38 percentages of the total amount required to be deducted and withheld by
39 an employer from wages of an employee for federal income tax purposes,
40 or measured by withholding tax tables promulgated by the executive
41 director, or by such other methods as the executive director may prescribe
42 if such percentage, percentages, tables, or other methods result in the
43 withholding from the employee's wages during each pay period an
44 amount which shall approximate as nearly as possible the income tax due
45 to the state of Colorado by such employee.
46 (II) IN ADDITION TO THE AMOUNT REQUIRED TO BE DEDUCTED AND
47 WITHHELD PURSUANT TO SUBSECTION (3)(a)(I) OF THIS SECTION, THE
48 EXECUTIVE DIRECTOR MAY REQUIRE EVERY EMPLOYER MAKING PAYMENT
49 OF COMPENSATION OTHER THAN WAGES TO DEDUCT AND WITHHOLD AN
50 AMOUNT MEASURED BY A PERCENTAGE OR PERCENTAGES, OR MEASURED
51 BY WITHHOLDING TAX TABLES ESTABLISHED BY THE EXECUTIVE
52 DIRECTOR, OR BY SUCH OTHER METHODS AS THE EXECUTIVE DIRECTOR
53 MAY PRESCRIBE IF SUCH PERCENTAGE, PERCENTAGES, TABLES, OR OTHER
54 METHODS RESULT IN THE WITHHOLDING FROM THE OTHER COMPENSATION
1 PAID TO AN EMPLOYEE DURING EACH PAY PERIOD AN AMOUNT WHICH
2 SHALL APPROXIMATE AS NEARLY AS POSSIBLE THE INCOME TAX DUE TO
3 THE STATE OF COLORADO BY SUCH EMPLOYEE ON SUCH OTHER
4 COMPENSATION.
5 (b) The executive director may, upon written application having
6 been made to him, approve a method of withholding in lieu of the method
7 provided in paragraph (a) of this subsection (3) SUBSECTION (3)(a) OF THIS
8 SECTION to authorize a withholding based upon a percentage fixed by the
9 executive director of the adjusted gross income, which percentage shall
10 approximate as nearly as possible the amount of income tax due to the
11 state of Colorado and as nearly as possible the amount so AMOUNTS
12 REQUIRED TO BE deducted and withheld in paragraph (a) of this subsection
13 (3) SUBSECTION (3)(a) OF THIS SECTION.
14 (4) (b) WHERE PRACTICABLE, the rules and regulations
15 promulgated pursuant to this section shall not prescribe filing or
16 INFORMATION REPORT, FILING, PAYMENT, OR withholding requirements
17 which are more frequent or more stringent than corresponding federal
18 requirements; EXCEPT THE EXECUTIVE DIRECTOR MAY PRESCRIBE
19 ADDITIONAL OR DIFFERENT REQUIREMENTS WHEN NECESSARY FOR THE
20 EFFICIENT ADMINISTRATION OF DIFFERENCES BETWEEN THE INTERNAL
21 REVENUE CODE AND THIS ARTICLE 22.
22 (5) All amounts deducted and withheld shall be considered as tax
23 collected under the provisions of this section and no employee shall have
24 any right of action against his AN employer in respect to any moneys so
25 AMOUNT deducted and withheld from his THE EMPLOYEE'S wages AND
26 OTHER COMPENSATION and paid over to the department in compliance or
27 in intended compliance with this section.
28 (6) (a) Every employer shall, in accordance with such rules as
29 shall be prescribed by the department of revenue, provide each employee
30 with a statement of the amounts of moneys deducted and withheld from
31 such employee's wages AND OTHER COMPENSATION in accordance with
32 the provisions of this section. Every employer shall also make an annual
33 statement for each employee to the department of revenue, on such forms
34 as are provided or approved by the department, a copy of which shall be
35 provided each employee, summarizing the total compensation paid and
36 the tax withheld for such employee during the preceding calendar year or
37 any portion thereof, and the said annual statement shall be filed on or
38 before the date established pursuant to section 6071 of the internal
39 revenue code for filing similar federal statements. Failure to file the
40 statements within the time prescribed therefor, unless shown to have been
41 due to reasonable cause, or the willful filing or furnishing of false or
42 fraudulent statements shall subject the employer to a penalty, at the
43 discretion of the executive director, of not less than five dollars nor more
44 than fifty dollars, which shall be in addition to any criminal penalty
45 otherwise provided for failure to file a return or for filing a false or
46 fraudulent return.
47 (8) The entire amount of income from wages AND OTHER
48 COMPENSATION upon which tax was deducted and withheld shall be
49 included in the gross income of the income tax return required to be made
50 by the employee, the recipient of the wages AND OTHER COMPENSATION,
51 without exclusion of such amounts deducted and withheld under this
52 section, and any tax so deducted and withheld shall be credited against the
53 total income tax, as computed in the employee's return, made in
54 accordance with the provisions of this section.
1 (10) In the event the excess tax deducted and withheld is one
2 dollar or less, no refund shall be made, unless a specific claim for refund
3 is filed by the taxpayer at the time the return is filed. The excess, subject
4 to being refunded, shall in no event and under no condition be allowed as
5 a credit against any tax accruing on a return filed for a year subsequent to
6 the year during which the wages OR OTHER COMPENSATION were received,
7 and can only be credited against a tax accruing upon a return of wages OR
8 OTHER COMPENSATION from which such excess was deducted and
9 withheld.
10 (13) The department is empowered to make rules and regulations
11 for the enforcement of the provisions of this section, including rules and
12 regulations for determining the amount, up to but not exceeding the
13 amount limited in this section, to be deducted and withheld by employers
14 from wages of AND OTHER COMPENSATION PAID TO nonresident
15 employees, only a part of whose wages OR OTHER COMPENSATION are
16 paid for services performed within the state of Colorado.
17 (16) (a) On or before the date of the commencement of
18 employment with an employer, the employee shall furnish the employer
19 with a signed withholding certificate. EXCEPT AS PROVIDED BY RULES
20 ESTABLISHED BY THE EXECUTIVE DIRECTOR PURSUANT TO THIS SECTION,
21 a comparable withholding certificate filed pursuant to the internal revenue
22 code shall be deemed to satisfy the filing requirement under this
23 subsection (16). Where necessary to cause the proper amount to be
24 withheld, the executive director may adjust the employee's withholding
25 to the amount properly allowable under the internal revenue code OR THIS
26 SECTION.
27 (b) (I) To enforce the provisions of this section, the executive
28 director may file with the employer a withholding certificate on behalf of
29 the employee. Prior to the filing of such certificate, the executive director
30 shall first notify the employee that the certificate previously filed by the
31 employee is being examined and that the employee may submit
32 satisfactory evidence pursuant to the internal revenue code within ten
33 days of receipt of said notice as to the correct number of withholding
34 exemptions and allowances. Should the executive director, after
35 reviewing any evidence so submitted, find the certificate filed by the
36 employee to be defective, the employer shall accept the certificate filed
37 by the director in lieu of any certificate previously filed by the employee,
38 and such certificate filed by the executive director shall thereafter form
39 the basis for withholding FROM wages AND OTHER COMPENSATION as
40 required by this section. The executive director may also require from the
41 employer a copy of any withholding certificate signed by the employee.
42 (20) No amount is required to be deducted and withheld from an
43 employee's wages OR OTHER COMPENSATION pursuant to this section for
44 income tax due to the state if the employee's withholding certificate
45 indicates that the compensation is eligible to be subtracted from federal
46 taxable income pursuant to section 39-22-104 (4)(u).
47 SECTION 13. In Colorado Revised Statutes, 39-26-102, amend
48 (19)(g) as follows:
49 39-26-102. Definitions - repeal. As used in this article 26, unless
50 the context otherwise requires:
51 (19) (g) (I) (A) For purposes of this subsection (19), BEFORE JULY
52 1, 2025, "agricultural commodities" does not include products regulated
53 under article 10 of title 44.
54
1 (B) THIS SUBSECTION (19)(g)(I) IS REPEALED, EFFECTIVE JULY 1,
2 2026.
3 (II) FOR PURPOSES OF THIS SUBSECTION (19), ON OR AFER JULY1,
4 2025, "AGRICULTURAL COMMODITIES" INCLUDES PRODUCTS REGULATED
5 UNDER ARTICLE 10 OF TITLE 44.
6 SECTION 14. In Colorado Revised Statutes, 39-26-104, add
7 (1)(c.5) as follows:
8 39-26-104. Property and services taxed - definitions. (1) There
9 is levied and there shall be collected and paid a tax in the amount stated
10 in section 39-26-106 as follows:
11 (c.5) (I) BEGINNING JULY 1, 2025, UPON TELEPHONE AND
12 TELEGRAPH SERVICES, WHETHER FURNISHED BY PUBLIC OR PRIVATE
13 CORPORATIONS OR ENTERPRISES FOR INTERSTATE TELEPHONE AND
14 TELEGRAPH SERVICE, IF THE TELEPHONE AND TELEGRAPH SERVICE
15 ORIGINATES OR TERMINATES IN THE STATE AND IS CHARGED TO A
16 COLORADO ADDRESS.
17 (II) IN ACCORDANCE WITH THE FEDERAL "MOBILE
18 TELECOMMUNICATIONS SOURCING ACT", 4 U.S.C. SECS. 116 TO 126, AS
19 AMENDED, MOBILE TELECOMMUNICATION SERVICE PROVIDED TO A
20 CUSTOMER WHOSE PLACE OF PRIMARY USE IS OUTSIDE OF THE BORDERS OF
21 THE STATE OF COLORADO IS EXEMPT FROM THE TAX IMPOSED BY THIS
22 SECTION.
23 (III) A TAXPAYER WHO PAYS A TAX LEGALLY IMPOSED BY
24 ANOTHER STATE ON A TELEPHONE OR TELEGRAPH SERVICE THAT IS
25 TAXABLE PURSUANT TO THIS SUBSECTION (1)(c.5) IS ALLOWED A CREDIT
26 AGAINST THE TAX IMPOSED BY THIS SECTION IN AN AMOUNT EQUAL TO THE
27 AMOUNT OF THE TAX IMPOSED ON A TELEPHONE OR TELEGRAPH SERVICE
28 BY THE OTHER STATE. A CREDIT ALLOWED PURSUANT TO THIS SUBSECTION
29 (1)(c.5)(III) SHALL NOT EXCEED THE TAX IMPOSED ON A TELEPHONE OR
30 TELEGRAPH SERVICE PURSUANT TO THIS SECTION.
726 31 SECTION 15. In Colorado Revised Statutes, amend 39-26-
32 as follows:
33 39-26-726. Medical marijuana - debilitating conditions and
34 ability to purchase. (1) All sales of medical marijuana to a patient who
35 is determined to be indigent for purposes of waiving the fee required by
36 section 25-1.5-106 C.R.S., shall be ARE exempt from taxation under part
37 1 of this article ARTICLE 26. If the patient is determined to be indigent, the
38 state health agency shall mark his or her THE PATIENT'S registry
39 identification card as such and the patient shall present the card to the
40 licensed medical marijuana center to receive the tax exemption.
41 (2) ON OR AFTER JULY 1, 2025, ALL SALES OF MEDICAL MARIJUANA
42 TO AN INDIVIDUAL WHO PRESENTS A VALID ELECTRONIC BENEFITS
43 TRANSFER CARD OR OTHER FORM OF IDENTIFICATION USED TO RECEIVE
44 STATE OR FEDERAL BENEFITS AT THE TIME OF SALE TO A LICENSED
45 MEDICAL MARIJUANA CENTER ARE EXEMPT FROM TAXATION UNDER PART
46 1 OF THIS ARTICLE 26.
47 SECTION 16. In Colorado Revised Statutes, 39-30-104, amend
48 (1)(a), (2)(c)(I) introductory portion, (2)(c)(I)(B), (2)(c)(III), and
49 (2)(c)(IV); repeal (2)(b); and repeal and reenact, with amendments,
50 (2.5) as follows:
51 39-30-104. Credit against tax - investment in certain property
52 - definitions. (1) (a) (I) There shall be IS allowed to any person as a
53 credit against the tax imposed by article 22 of this title 39, for income tax
54 years commencing on or after January 1, 1986, an amount equal to the
1 total of three percent of the total qualified investment, as determined
2 under section 46 (c)(2) of the federal "Internal Revenue Code of 1986",
3 as amended, in such taxable year in qualified property as defined in
4 section 48 of the internal revenue code to the extent that such investment
5 is in property that is used solely and exclusively in an enterprise zone for
46 6 at least one year. The references in this subsection (1) to sections
48 7 (c)(2) and 48 of the internal revenue code mean sections 46 (c)(2) and
8 of the internal revenue code as they existed immediately prior to the
9 enactment of the federal "Revenue Reconciliation Act of 1990".
10 (II) (A) NOTWITHSTANDING SUBSECTION (1)(a)(I) OF THIS
11 SECTION, FOR CREDITS ALLOWED BEGINNING IN INCOME TAX YEARS
12 COMMENCING ON OR AFTER JANUARY 1, 2026, A TAXPAYER IS NOT
13 ALLOWED A TOTAL CREDIT AMOUNT AGAINST THE TAX IMPOSED BY
14 ARTICLE 22 OF THIS TITLE 39 PURSUANT TO SUBSECTION (1)(a)(I) OF THIS
15 SECTION IN EXCESS OF TWO MILLION DOLLARS AND A TAXPAYER MAY NOT
16 CLAIM A CREDIT PURSUANT TO THIS SUBSECTION (1)(a) IF THE QUALIFIED
17 PROPERTY IS DIRECTLY USED IN: THE RETAIL SALE OF GASOLINE OR DIESEL
18 FUEL FOR USE IN MOTOR VEHICLES OR A WIRELESS TELECOMMUNICATIONS
19 FACILITY.
20 (B) A TAXPAYER MAY SEEK A WAIVER OF THE LIMITATION ON THE
21 AMOUNT OF CREDIT ESTABLISHED IN SUBSECTION (1)(a)(II)(A) OF THIS
22 SECTION BY COMPLETING A WRITTEN APPLICATION TO THE COLORADO
23 ECONOMIC DEVELOPMENT COMMISSION FOR PERMISSION TO BE ALLOWED
24 A CREDIT IN EXCESS OF THAT LIMITATION FOR THE INCOME TAX YEAR IN
25 WHICH THE TOTAL QUALIFIED INVESTMENT IS MADE. THE APPLICATION
26 MUST INCLUDE IDENTIFICATION OF THE SUBSTANTIAL POSITIVE IMPACT
27 THAT THE WAIVER OF THE LIMITATION WOULD HAVE ON INVESTMENTS AND
28 ON WELL-PAYING JOBS IN THE ENTERPRISE ZONE, DOCUMENTATION THAT
29 DEMONSTRATES THAT WITHOUT THE WAIVER OF THE LIMITATION THE
30 SUBSTANTIAL POSITIVE IMPACT ON INVESTMENTS AND ON WELL-PAYING
31 JOBS IN THE ENTERPRISE ZONE IS NOT LIKELY TO OCCUR, AND
32 INFORMATION THAT THE WAIVER OF THE LIMITATION IS A SUBSTANTIAL
33 FACTOR IN THE TAXPAYER'S DECISION TO MAKE A QUALIFIED INVESTMENT
34 IN THE START-UP, RETENTION, EXPANSION, OR RELOCATION OF THE
35 TAXPAYER'S BUSINESS, SUCH THAT WITHOUT THE WAIVER THE TAXPAYER
36 IS NOT LIKELY TO MAKE THE QUALIFIED INVESTMENT. IN DECIDING
37 WHETHER TO GRANT THE WAIVER OF THE LIMITATION, THE COMMISSION
38 MUST CONSIDER THE OVERALL ECONOMIC HEALTH OF THIS STATE AND THE
39 ECONOMIC VIABILITY OF THE ARGUMENTS MADE BY THE TAXPAYER IN
40 SUPPORT OF THE TAXPAYER'S APPLICATION. THE COLORADO ECONOMIC
41 DEVELOPMENT COMMISSION MAY REQUIRE THE TAXPAYER TO PROVIDE AN
42 INDEPENDENT ANALYSIS, AT THE TAXPAYER'S EXPENSE, THAT
43 SUBSTANTIATES THE TAXPAYER'S ARGUMENTS IN SUPPORT OF THE
44 APPLICATION. THE TAXPAYER'S APPLICATION MUST BE CONSIDERED AT A
45 REGULARLY SCHEDULED MEETING OF THE COLORADO ECONOMIC
46 DEVELOPMENT COMMISSION AT WHICH THE PUBLIC IS ALLOWED TO
47 COMMENT.
48 (C) THE COLORADO ECONOMIC DEVELOP
House Journal, April 25
15 Amendment No. 1, Finance Report, dated April 21, 2025, and placed in
16 member’s bill file; Report also printed in House Journal, April 22, 2025.
17
18 Amendment No. 2, by Representative Garcia:
19
20 Amend the Finance Committee Report, dated April 21, 2025, page 15,
21 after line 24 insert:
22
23 "SECTION 17. Effective date - applicability. This act takes
24 effect upon passage; except that section 5 takes effect January 1, 2026.".
25
26 Renumber succeeding section accordingly.
27
28 As amended, ordered engrossed and placed on the Calendar for Third
29 Reading and Final Passage.
30