Bill Tracker

Current law requires an employer to provide its employees with an
annual statement showing the total compensation paid and the income tax
withheld for the preceding calendar year. The bill requires an employer
to also provide, within a week before or after providing the statement and
in the same manner as the statement is provided, written notice of the
availability of the federal and state earned income tax credits and the
federal and state child tax credits. The written notice must be in English
and any other language the employer uses to communicate with
employees and must include any additional content that the department
of revenue prescribes.

• March 09, 2023: Senate Business, Labor, & Technology Committee Report
• March 09, 2023: Senate Business, Labor, & Technology Committee Report
• January 26, 2023: L.001 House Business Affairs & Labor
• January 26, 2023: House Business Affairs & Labor Committee Report
• January 26, 2023: House Business Affairs & Labor Committee Report
• January 10, 2023: H_BUS_2023A_20230126_133045 Committee Report

League position on Income Assistance: Support income assistance programs, based on need, that provide decent, adequate standards for food, clothing, and shelter.

HB23-1008 extends the Community Food Access program, set to expire September 1, 2027, five years to September 1, 2031.

The bill authorizes $1M each year till until 2030 to allow Department of Public Health and Environment to partner with state-wide nonprofits to provide incentives for healthy eating among low-income populations.

It includes a tax credit to small retailers and farms who participate in the Community Food Access program equal to 75% of the cost of cold storage, scales, shelving and other capital equipment, 2024-2030.

Colorado will lose $53M in federal funding this year as Supplemental Nutrition Assistance Program (SNAP) temporary increases during the pandemic are set to expire now.

The cost of HB23-1008 will be subsidized for the most part by requiring that business meal expenses on federal itemized deductions be added to Colorado taxable income.

Fiscal Note: revenue in the out year is expected to be $4.4M.  Total expenditures $6.43M. General fund $954.548. Tabor refund:$4.4M.

All testimony (11) was in support. Lobbyist are all in support or monitoring, the exception being the Colorado Springs Chamber of Commerce and Economic Development Corporation.

Status: the bill passed 7-4 on to the Appropriations Committee. I would expect amendments that may change the funding source.

Section 2 of the bill requires the general assembly, for fiscal year
2023-24 through fiscal year 2030-31, to annually transfer $1 million to
the prevention services division (division) within the department of public
health and environment. The bill requires the division to use this money
to partner with a statewide nonprofit organization to provide healthy
eating program incentives among Colorado's low-income populations.
Section 3 requires individual taxpayers to add an amount of
federal taxable income equal to their federal deduction for business meals
to their state income tax liability for the 2024 through 2030 income tax
years. Section 4 requires the same of corporate taxpayers. Section 6
requires the general assembly to transfer the following amounts from the
general fund to the department of agriculture to implement the small
business recovery and resilience grant program (grant program):
  • For fiscal years 2023-24 and 2030-31, $2.5 million; and
  • For fiscal years 2024-25 through 2029-30, $5 million.
Section 6 also extends the repeal date of the grant program from
September 1, 2027 to September 1, 2031.
Section 5 creates a tax credit for small food retailers and small
family farms that purchase certain systems or equipment. The tax credit
is equal to 75% of the cost of those systems or equipment. Purchasers
may assign the tax credit to the seller who sells them the qualifying
systems or equipment. The tax credit is available for the 2024 through
2030 tax years.

• April 24, 2023: Senate Appropriations Committee Report
• April 04, 2023: Senate Finance Committee Report
• April 04, 2023: Senate Finance Committee Report
• March 17, 2023: House Appropriations Committee Report
• March 17, 2023: House Appropriations Committee Report
• February 13, 2023: House Finance Committee Report
• February 13, 2023: House Finance Committee Report
• February 13, 2023: HB23-1125 L.001 House Finance

Wildfire Matters Review Committee. The bill creates the timber,
forest health, and wildfire mitigation industries workforce development
program (program) in the state forest service. The program provides
partial reimbursement to timber businesses and forest health or wildfire
mitigation entities for the costs of hiring interns. The forest service must
adopt rules, policies, and procedures for the program, including criteria
for an internship to qualify, best practices for recruiting and selecting
interns to increase representation of historically underrrepresented
communities in the industries, the criteria to use in selecting qualified
interns, the required educational experience for an intern, and
administrative requirements for the program.
For income tax years beginning on or after January 1, 2023, but
before January 1, 2028, a business involved in forestry, logging, the
timber trade, the production of wood and secondary products, or forest
health and wildfire mitigation activities in Colorado may claim a credit
against state income tax for 20% of the cost incurred by the taxpayer in
purchasing certain equipment, vehicles, and equipment infrastructure. The
total aggregate credit in any one income tax year is limited to $10,000.
Any amount of the credit that exceeds the taxpayer's income tax liability
is not refundable but may be carried forward for up to 5 years.

• February 23, 2023: House Finance Committee Report
• February 23, 2023: House Finance Committee Report
• February 06, 2023: HB23-1018 L.001 House Agriculture, Water & Natural Resources
• February 06, 2023: House Agriculture, Water & Natural Resources Committee Report
• February 06, 2023: House Agriculture, Water & Natural Resources Committee Report

Current law allows a state income tax deduction for payments
made under a qualified state tuition program equal to a maximum of
$20,000 for a taxpayer who files an individual income tax return and
$30,000 for 2 married taxpayers who file a joint income tax return. The
bill increases to $40,000 the maximum deduction for married taxpayers
who file a joint income tax return.

• February 27, 2023: House Finance Committee Report
• February 27, 2023: House Finance Committee Report

Most real property is reassessed every odd-numbered year. The bill
establishes a one-time exception by making the reassessment cycle
beginning on January 1, 2021, a 4-year cycle so that the next reassessment
cycle will begin in 2025 instead of 2023.
Under current law, for the 2023 property tax year, the actual value
used for purposes of valuation for assessment is reduced for commercial
real property by $30,000 and for residential real property by $15,000. The
bill eliminates these reductions.
The bill also sets the assessment rates for nonresidential real
property and multi-family residential real property for the 2024 property
tax year, so that they are the same rates as for the 2023 property tax year.
Lastly, the bill ensures that the actual value of property used for
purposes of valuation for assessment does not increase by more than 5%
between 2022 and 2025, for property that does not have an unusual
condition which results in an increase or decrease in actual value.

• March 09, 2023: House Finance Committee Report
• March 09, 2023: House Finance Committee Report

For income tax years commencing on and after January 1, 2024,
the bill reduces both the individual and the corporate state income tax
rates from 4.40% to 3.5%.  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 a repeal after a specified period of tax years.

The League supports income as a major tax base in Colorado.  This measure would reduce state revenue from individual income taxes and corporate income taxes, for a 20% reduction in revenue from those sources.  Without enacting either offsetting sources of revenue or commensurate cuts in spending, this measure is irresponsible on its face.

For income tax years commencing on and after January 1, 2024,
the bill reduces both the individual and the corporate state income tax
rates from 4.40% to 3.5%. 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 a repeal after a specified period of tax years.

• February 09, 2023: House State, Civic, Military, & Veterans Affairs Committee Report
• February 09, 2023: House State, Civic, Military, & Veterans Affairs Committee Report

Under current law, a qualified business is allowed a tax credit in
the amount of 50% of the costs to convert the qualified business to a form
of employee ownership. The tax credit is capped at $25,000 for
converting a qualified business to a worker-owned cooperative or
employee ownership trust, and capped at $100,000 for converting a
qualified business to an employee stock ownership plan.
The bill:
  • Increases the cap for converting a qualified business to a
worker-owned cooperative or employee ownership trust
from $25,000 to $40,000, and increases the cap for
converting a qualified business to an employee stock
ownership plan from $100,000 to $150,000;
  • Expands the tax credit to include 50% of the costs of a
qualified employee-owned business expanding its
employee ownership by at least 20%, not to exceed
$25,000;
  • Expands the tax credit to include 50% of the costs of a
qualified business converting to or expanding an alternate
equity structure, not to exceed $25,000. An alternate equity
structure is a form of employee ownership where an
employer grants to employees an employee stock
ownership plan, LLC membership, phantom stock, profit
interest, profit sharing, restricted stock, stock appreciation
right, stock option, or synthetic equity.
  • Specifies that a qualified business or qualified
employee-owned business may apply for and claim only
one credit for the conversion or expansion costs per tax
year.

• May 04, 2023: Senate Appropriations Committee Report
• May 02, 2023: Senate Finance Committee Report
• April 18, 2023: House Appropriations Committee Report
• February 02, 2023: House Finance Committee Report
• February 02, 2023: House Finance Committee Report

A taxpayer who makes a monetary contribution to promote child
care in the state is allowed an income tax credit that is equal to 50% of the
total value of the contribution. This exemption is currently available for
income tax years that commence prior to January 1, 2025. The bill
extends the credit for 3 years and increases the types of contributions that
qualify for the tax credit to include in-kind donations of real property,
which include the value of leasing real property below market value, to
promote child care.
The bill adds a statutory legislative declaration to comply with an
existing statutory requirement that any bill that extends a tax expenditure
include a statutory legislative declaration. The bill also requires the state
auditor to prepare the tax expenditure evaluation report for the credit that
is periodically required by current law in the income tax year
commencing January 1, 2026.

• April 28, 2023: Senate Appropriations Committee Report
• April 25, 2023: Senate Finance Committee Report
• April 14, 2023: House Appropriations Committee Report
• February 02, 2023: House Finance Committee Report
• February 02, 2023: House Finance Committee Report

The bill requires the state treasurer to transfer 60% of the
severance taxes paid by an entity that are attributable to the developing,
processing, or energy conversion of minerals and mineral fuels subject to
taxation in a county in a given tax year to that same county. A county that
receives a transfer in accordance with the bill shall use the transferred
funds for building or improving roads, schools, or local infrastructure.

• February 13, 2023: House Finance Committee Report
• February 13, 2023: House Finance Committee Report

The state and federal Earned Income Tax Credit (EITC) and Child Tax Credit CTC) are a boon to low-income tax filers, especially to families with children. Both federal credits and the state child tax credit are refundable, meaning some eligible people can get checks back from both the feds and the state, even if they owe no tax. The state credits are a percent of the federal credit. This bil

1. Increases the state EITC from 25% to 40% of the federal credit
2. Increases the state CTC
3. Changes the child’s age cap for CTC from 5 to the federal limit of 16 (under 6 to under 17)

Because Colorado’s income tax rate is a flat rate for all, and our sales tax takes the largest share of income from those with the smallest earnings, our overall state tax system is regressive, hitting hardest those least able to pay. HB23-1112, by increasing tax credits for those with the lowest incomes, especially those families with children, helps make Colorado’s tax system more progressive.

The League has two studied positions pertinent to this bill:

1. The League supports policies and programs at all levels of the community and government that promote the well-being of children [Impact on Issues 2020-2022 p 15]
2. The League supports a tax system that is progressive, taking a larger share of income from the richest and the smallest share from those with lowest incomes. In evaluating specific tax preferences, the League will use the following criteria: whether the tax preference promotes equity and progressivity; whether the tax preference effectively furthers League of Women Voters program goals; whether the tax preference is the  most efficient means of achieving its purpose; whether the revenue loss from the tax preference is justifiable.  [Impact on Issues 2020-2022 pp 126-128]

This bill builds on HB21-1311, which doubled Colorado’s earned income tax credit (EITC) from 10% to 20% of the federal credit and funded the state child tax credit (CTC) for families with children under 6 years old at 30%, 15% or 5%, phasing out the CTC as income rises. 

HB23-1112 was recommended by the Legislative Oversight Committee Concerning Tax Policy (LOCCTP).  The three bill sponsors were 3 of the 6 members of the LOCCTP.

Legislative Oversight Committee Concerning Tax Policy. For
income tax years commencing on or after January 1, 2024, the bill
increases the earned income tax credit that a resident individual can claim
on their state income tax return to 40% of the federal credit claimed on
the resident individual's federal income tax return. For income tax years
commencing on or after January 1, 2024, the bill changes the definition
of eligible child to match the age of eligibility for the federal credit,
increases percentages of the federal credit that a resident individual can
claim for the child tax credit on their state income tax return by 20%,
10%, or 5% depending on the resident individual's income level, and
requires the department of revenue to adjust for inflation the income
levels set forth to determine eligibility for the credit.

• May 05, 2023: Senate Appropriations Committee Report
• May 04, 2023: Senate Finance Committee Report
• April 25, 2023: House Appropriations Committee Report
• March 27, 2023: House Finance Committee Report
• March 27, 2023: House Finance Committee Report

Legislative Oversight Committee Concerning Tax Policy. The
bill repeals the following infrequently used tax expenditures:
  • The crop hail insurance premium tax exemption (section 1
of the bill);
  • The in-state investment pre-1959 insurance premium tax
deduction (section 1);
  • The corporate condemnation capital gains income tax
deduction (section 2);
  • The oil shale excess percentage depletion income tax
deduction (section 2);
  • The mining and milling impact assistance corporate income
tax credit (section 3);
  • The oil shale equipment and machinery severance tax
deduction (section 4);
  • The oil shale processing severance tax deduction (section
4);
  • The oil shale severance tax rate reductions (section 4);
  • The oil shale noncommercial production severance tax
exemption (section 4); and
  • The mineral and mineral fuels impact assistance severance
tax credit (section 5).
Sections 6 and 7 make conforming amendments.

• March 07, 2023: Senate Finance Committee Report
• March 07, 2023: Senate Finance Committee Report
• February 09, 2023: House Finance Committee Report
• February 09, 2023: House Finance Committee Report

Legislative Oversight Committee Concerning Tax Policy. For
income tax years beginning January 1, 2024, the bill both:
  • Increases the amount of federal taxable income taxpayers
may have and still qualify for the state income tax credit for
purchasing long-term care insurance and annually adjusts
that amount of federal taxable income for inflation; and
  • Doubles the amount of the credit that a taxpayer may claim
and annually adjusts the credit for inflation.

• February 13, 2023: House Finance Committee Report
• February 13, 2023: House Finance Committee Report

Section 1 makes legislative findings and declarations concerning
the treatment of taxpayers filing individually versus those filing jointly
and clarifies that the intent of the bill is to eliminate barriers to certain tax
credits and deductions for married individuals.
Section 2 increases the maximum amount of the wildfire
mitigation measures tax deduction from $2,500 to $5,000 for married
taxpayers who file a joint income tax return.
Section 3 increases the qualifying maximum gross adjusted
income threshold for the child care expense tax credit from $60,000 to
$120,000 for married taxpayers who file a joint income tax return.
Section 4 raises the qualifying maximum income threshold for the
low-income child care expense tax credit from $25,000 to $50,000 for
married taxpayers who file a joint income tax return.

• March 06, 2023: House Finance Committee Report
• March 06, 2023: House Finance Committee Report

The bill establishes a state income tax credit for the purchase and
installation of a lifebuoy apparatus in a subdivision with a body of water
beginning January 1, 2023. The tax credit is for $1,500 per lifebuoy
apparatus purchased and installed in the subdivision by an eligible
purchaser. The tax credit may be claimed only once per lifebuoy
apparatus and is not refundable, but may be carried forward up to 5 years.
An eligible purchaser must certify to the department of revenue each
lifebuoy apparatus purchased and installed during each tax year for which
the credit is claimed.

• February 16, 2023: House Finance Committee Report
• February 16, 2023: House Finance Committee Report

Recall that TABOR prohibits the CO General Assembly from raising taxes. For years there were attempts to fund transportation infrastructure, including repairing Colorado’s many dangerous bridges. Finally, in 2021, the 163 pages of SB21-260 created many fees to improve transportation, including a number of retail delivery fees, that together will deliver over $200 million/year to preserve, improve, and expand existing transportation infrastructure and expand the electric vehicle charging network. HB23-1166 repeals most or all of the retail delivery fees of SB21-260, driving a tractor trailer through hard-won funding for transportation and the transition to electric vehicles.

One League of Women Voters principle is a belief that efficient and economical government requires adequate financing [Impact on Issues 2020-2022 p 10] . This bill makes financing less adequate.

A retail delivery is a retail sale of tangible personal property that
is subject to state sales tax by a retailer for delivery by a motor vehicle to
the purchaser at any location in the state. As authorized by current law,
retail delivery fees are imposed on each retail delivery by:
  • The state;
  • The community access enterprise;
  • The clean fleet enterprise;
  • The statewide bridge and tunnel enterprise;
  • The clean transit enterprise; and
  • The nonattainment area air pollution mitigation enterprise.
Effective July 1, 2023, the bill eliminates the retail delivery fees
by specifying that they may only be collected for the 2022-23 state fiscal
year.

• February 21, 2023: House Transportation, Housing & Local Government Committee Report
• February 21, 2023: House Transportation, Housing & Local Government Committee Report

The bill creates a state income tax credit for employers who make
a monetary contribution to an employee for use by the employee in
purchasing a primary residence. The amount of the credit allowed is 5%
of an employer's contribution to an employee, but the credit is capped at
$5,000 per employee per year and an employer cannot receive a credit of
more than $750,000 for all contributions made in a year to employees.
The employee must use the money contributed for eligible expenses
which include a down payment and closing costs, including fees for
appraisals, mortgage origination, and inspections. An employee may
authorize their employer to withhold a specified amount of the employee's
earnings as an employee contribution into the savings account established
by the employer that holds the employer contribution. If an employee
ends their employment with the employer or if the employee intends to
use the employee contribution in a manner that is not consistent with an
eligible expense, the employee forfeits any unexpended amount of the
employer contribution and the amount of the credit allowed to the
employer for the employer contribution is subject to recapture. In such an
occurrence, the employee is entitled to the employee contribution, plus
any interest earned. The credit is not refundable but may be carried
forward by the employer for a period of not more than 5 years. The
amount contributed by the employer may be subtracted by the employee
from the employee's federal taxable income for the purpose of
determining their state taxable income; except that, if an employee
forfeits the employer contribution, then the amount that the employee had
subtracted from their federal taxable income is added back to their federal
taxable income for the purpose of determining their state taxable income
for the subsequent tax year. The executive director of the department of
revenue may promulgate rules related to the implementation of the credit.

• May 05, 2023: Senate Appropriations Committee Report
• May 04, 2023: Senate Finance Committee Report
• April 28, 2023: House Appropriations Committee Report
• February 27, 2023: House Finance Committee Report
• February 27, 2023: House Finance Committee Report

For income tax years commencing on or after January 1, 2023, but
before January 1, 2027, the bill allows a refundable state income tax
credit, which is intended to offset the various expenses that licensed
teachers often incur throughout an academic year for classroom supplies,
professional development costs, supplemental educational materials, field
trips, and other items that improve the quality of the educational services
that they provide, to a licensed teacher who is employed as a teacher in
a public school on a full-time basis for at least one-half of an academic
year (eligible teacher) during the income tax year for which the credit is
claimed. The amount of the credit is $1,000 for an eligible teacher who
is employed for the equivalent of an entire academic year and $500 for a
teacher who is employed for one-half of an academic year. Two eligible
teachers who file a joint income tax return may each claim the credit.

• April 03, 2023: House Finance Committee Report
• April 03, 2023: House Finance Committee Report
• March 23, 2023: House Education Committee Report
• March 23, 2023: House Education Committee Report

Section 1 of the bill creates a state sales and use tax exemption for
construction and building materials purchased on or after January 1, 2020,
but before July 1, 2025, to be used directly in rebuilding or repairing a
residential structure damaged or destroyed by a declared wildfire disaster
in calendar year 2020, 2021, or 2022 (wildfire rebuild exemption).
A homeowner, or a contractor employed by a homeowner, may
obtain a wildfire rebuild exemption certificate from the local government
authorized to issue a building permit in the area in which the residential
structure to be repaired or rebuilt is located. To be qualified, a
homeowner must certify that:
  • The homeowner was the owner of each residential structure
to be repaired or rebuilt at the time the structure was
damaged or destroyed by the declared wildfire disaster; and
  • The replacement cost for each residential structure to be
repaired or rebuilt exceeds the homeowner's coverage
under any homeowner's insurance policy associated with
the structure.
To claim the exemption, the qualified homeowner, or contractor
employed by such homeowner, must provide a copy of the wildfire
rebuild exemption certificate to each retailer from which the homeowner
or contractor purchases exempt construction or building materials. If a
qualified homeowner, or contractor employed by such homeowner, has
paid state sales or use tax on the purchase of exempt construction or
building materials on or after January 1, 2020, but before July 1, 2025,
then the person who made the purchase may apply to the department of
revenue for a refund pursuant to existing sales and use tax refund
procedures. Alternatively, if the purchaser-contractor has not been
granted a refund, the homeowner for whom the exempt materials were
purchased may apply for a refund by establishing certain existing
statutory requirements are met.
Sections 2 and 3 include the wildfire rebuild exemption among
other exemptions available to state-collected and administered local sales
and use tax jurisdictions, including statutory cities and counties, for
adoption at their discretion.

• May 04, 2023: Senate Appropriations Committee Report
• May 02, 2023: Senate Finance Committee Report
• April 18, 2023: House Appropriations Committee Report
• March 20, 2023: House Finance Committee Report
• March 20, 2023: House Finance Committee Report

The bill creates new and modifies existing state tax incentives to
maximize federal government funding for taxpayers engaged in
semiconductor and advanced manufacturing in Colorado. Section 1 of the
bill creates a refund mechanism, available from fiscal year 2023-24
through fiscal year 2028-29, that allows a taxpayer engaged in
semiconductor or advanced manufacturing to apply for conditional
approval of one or more types of income tax credits based on a specified
project in the state and includes the maximum amount of credit for which
the taxpayer may claim a refund of 80% . The income tax credit types that
may be the basis for such a refund are:
  • The three enterprise zone credits for qualified investments,
business facility employees, and expenditures for research
and experimental activities;
  • The Colorado job growth incentive income tax credit; and
  • Three semiconductor manufacturing zone (CHIPS zone)
credits for qualified investments, business facility
employees, and expenditures for research and experimental
activities, which zones are created in Section 5.
Semiconductor and advanced manufacturers must apply to the Colorado
economic development commission (commission) for a refund certificate
approving their project and setting the maximum amount of income tax
credits that the manufacturer may claim as a refund in connection with the
project. Approved projects must timely commence and credits must be
earned within twelve years of approval by the commission. In reviewing
applications, the commission must prioritize taxpayers engaged in
semiconductor or advanced manufacturing that have received or applied
to receive matching funds under the American Rescue Plan Act of
2021, the Creating Helpful Incentives to Produce Semiconductors and
Science Act of 2022 (CHIPS Act), or other similar federal legislation.
The total amount of all refund certificates approved by the
commission cannot exceed $15 million per fiscal year; except that, if less
than $15 million is approved at the end of any fiscal year, the remaining
amount is available for approval in the next fiscal year. The total amount
of all refund certificates approved by the commission for all fiscal years
from July 1, 2023, through June 30, 2029, cannot exceed $75 million.
Section 2 creates, within the office of economic development
(office), a temporary task force comprised of state legislators,
representatives of the office, and citizens with industry experience to
study the effectiveness of financial incentives and other resources
intended to attract and promote the development of advanced
manufacturing and other science, technology, engineering, or math
(STEM) companies in Colorado during the 2023 legislative interim. The
task force is required to report its findings to the general assembly and the
governor by a specified date.
Sections 3 through 5 amend the enterprise zone income tax
credits for qualified investments, business facility employees, and
research and experimental activities to incorporate the refund mechanism
created in section 1.
Section 6 creates the CHIPS zone tax credit program. Similar to
the enterprise zone tax credit program, a local government may propose
an area for designation as a CHIPS zone, which designation may promote
the local economy through incentivizing businesses to locate in the area.
A taxpayer located in a CHIPS zone may be eligible to claim an income
tax credit under existing enterprise zone statutes for the taxpayer's
qualified investments, business facility employees, or research and
experimental activities. However, the tax benefits of CHIPS zones are
only available to taxpayers engaged in semiconductor manufacturing, as
that term is defined under the CHIPS Act.
All CHIPS zone tax credits must be precertified by the CHIPS
zone administrator. All such credits may be used to offset a taxpayer's
liability or carried forward for a period not to exceed 12 years. Or, if the
credits are included in a refund certificate approved by the commission
pursuant to section 1, they may be used to claim a refund of 80% of the
total amount of the credits.
CHIPS zones may be modified or terminated in the discretion of
the commission between income tax years 2023 and 2040; however, all
CHIPS zones will terminate as a matter of law on December 31, 2040.
Section 7 modifies the Colorado job growth incentive tax credit to
provide for an award of credit to taxpayers engaged in an advanced
manufacturing or semiconductor manufacturing project that brings a net
job growth of a least 20 jobs with an average yearly wage of at least 75%
of the average yearly wage of the county in which the taxpayer is located.
Such taxpayers are the only subset of recipients of the Colorado job
growth incentive tax credit that may pursue a refund in accordance with
section 1.

• May 05, 2023: Senate Appropriations Committee Report
• May 04, 2023: Senate Finance Committee Report
• April 18, 2023: House Appropriations Committee Report
• April 03, 2023: House Finance Committee Report
• April 03, 2023: House Finance Committee Report

Section 2 of the bill extends the innovative motor vehicles income
tax credit for the purchase or lease of electric motor vehicles and plug-in
hybrid electric motor vehicles that weigh 8,500 pounds or less through tax
year 2028 and adjusts the amount of the credit that may be claimed,
including with certain allowances for additional credit amounts for
vehicles purchased or leased at a location that allows the credit to be
assigned and is assigned to a motor vehicle dealer or financing entity and
for vehicles that have a manufacturer's suggested retail price below
$30,000.
However, the credit cannot be claimed for vans, sport utility
vehicles, and pickup trucks that have a manufacturer's suggested retail
price of $80,000 or more or for any other vehicle that has a
manufacturer's suggested retail price of $55,000 or more. Additionally,
if for any one of the state fiscal years 2025-26, 2026-27, or 2027-28, the
state is not projected to exceed the state fiscal year spending limit
imposed by section 20 of article X of the state constitution by 5% then for
any income tax year commencing in the calendar year that begins in that
fiscal year, the amount of the credit is reduced by 50%, and if the amount
of the reduced credit is at or below $500, then no credit is allowed for
such a tax year.
Section 3 extends the income tax credit for the purchase or lease
of an innovative truck through tax year 2028 and adjusts the amount of
the credit that may be claimed. However, for light-duty trucks, if for any
one of the state fiscal years 2025-26, 2026-27, or 2027-28, the state is not
projected to exceed the state fiscal year spending limit imposed by section
20 of article X of the state constitution by 5% then for any income tax
year commencing in the calendar year that begins in that fiscal year, the
amount of the credit is reduced by 50%, and if the amount of the reduced
credit is at or below $500, then no credit is allowed for such a tax year.
Additionally, under current law, the innovative motor vehicles tax
credit and the innovative trucks tax credit may be assigned by a purchaser
to the entity that finances the purchase or lease of the vehicle. Sections 1
and 2 expand the purchaser's ability to assign the credits to a motor
vehicle dealer in addition to a financing entity. For income tax years
commencing on or after January 1, 2024, sections 1 and 2 also allow a tax
exempt person or political subdivision of the state to claim or assign the
tax credit.
Section 4 terminates an existing heat pump tax credit so that it is
allowed only for income tax years beginning on and after January 1, 2023,
but before January 1, 2024.
Section 5 creates a refundable income tax credit allowable in tax
years commencing on or after January 1, 2024, but before January 1,
2033, for the owner of an industrial facility that undertakes a industrial
study (study) or puts greenhouse gas emissions reduction improvements
(improvements) into service. The credit is administered by the Colorado
energy office (office). The amount of credit that can be claimed for an
industrial study is 30% of the costs paid for completing the study up to $1
million.
The amount of credit that can be claimed for improvements is 30%
of the capital costs paid by the owner, not including the cost for design;
except that for certain improvements that have the potential to
significantly reduce greenhouse gas emissions but are not yet
commercially available, the office may approve a higher percentage to be
claimed of up to 50%. Owners must apply semi-annually for the credit to
the office and the office reviews applications and awards a reservation of
credits based on a merit-based review. Upon completion of a study or
upon putting the improvements into service, the office issues the owner
a tax credit certificate to claim the credit in the amount reserved to the
owner. The availability of the credit is subject to an aggregate cap each
application period. If the aggregate maximum amount is not claimed in
a tax year, the aggregate maximum amount in the next income tax year is
increased by an amount equal to the excess amount.
Section 6 creates a refundable tax credit for an expenditure an
eligible taxpayer makes in connection with a geothermal energy project,
which is a project in the state that is intended to evaluate and develop a
geothermal resource for the purpose of electricity production. The office
is required to approve geothermal energy projects that can receive a
qualified expenditure made by an eligible taxpayer. The office sets the
amount of credit an eligible taxpayer may receive and reserves the
amount of credit for the income tax year in which the eligible taxpayer
anticipates making the expenditure. Subject to specified limits on the
maximum amount of credits that the office may approve and that an
eligible taxpayer may receive, the office issues a tax credit certificate in
the reserved amount of tax credit after an eligible taxpayer submits a cost
certification of the qualified expenditure.
Section 7 creates a refundable tax credit for income tax years
beginning on or after January 1, 2024, but before January 1, 2033, that is
administered by the office and is available to a person subject to income
tax or a person or political subdivision of the state exempt from income
tax that produces geothermal electricity for sale or for the person or
political subdivision's own use. The credit amount is equal to $0.003 per
kilowatt hour of geothermal electricity that is produced in the state in the
tax year, up to a maximum amount of $1 million.
Section 8 creates a new refundable income tax credit for heat
pump technology for income tax years commencing on or after January
1, 2024, but before January 1, 2033. The office is responsible for
maintaining a list of eligible taxpayers who meet certain industry criteria
and who are allowed the credit for the installation of heat pump
technology or a thermal energy network if the eligible taxpayer provides
a discount from the amount charged for installation, unless the eligible
taxpayer installs their own heat pump technology or thermal energy
network. The amount of the tax credit is calculated based on the
applicable percentage, set annually by the office, of a flat dollar amount
which depends on the type of heat pump technology installed and the year
the credit is claimed. The calculation of the amount of allowable credit
may be modified depending on whether the heat pump technology is
installed at a multifamily property, at a nonresidential building, or for a
thermal energy network. However, for heat pump technology that is
installed in an existing residential building or nonresidential building, if
for any one of the state fiscal years 2025-26 through 2032-33, the state is
not projected to exceed the state fiscal year spending limit imposed by
section 20 of article X of the state constitution by 5% then for any income
tax year commencing in the calendar year that begins in that fiscal year,
the amount of the credit is reduced by 50%, and if the amount of the
reduced credit is at or below $250, then no credit is allowed for such a tax
year.
Section 9 creates a refundable income tax credit for income tax
years commencing on or after January 1, 2024, but before January 1,
2033, for the sale of new qualifying electric bicycles in the state. The
credit is allowed in the amount of $800 to a qualified retailer who sells a
qualifying electric bicycle to a resident of the state and offers a discount
equal to the lesser of $700 or the purchase price. However, if for any one
of the state fiscal years 2025-26 through 2032-33, the state is not
projected to exceed the state fiscal year spending limit imposed by section
20 of article X of the state constitution by 5% then for any income tax
year commencing in the calendar year that begins in that fiscal year, the
amount of the credit is reduced by 50%.
Section 10 creates a refundable income tax credit for income tax
years commencing on or after January 1, 2024, but before January 1,
2033, for a percentage of the actual costs incurred to construct,
reconstruct, or erect a sustainable aviation fuel production facility in the
state. The credit can be claimed by an aviation business, a sustainable
aviation fuel producer, or an airport for the income tax year in which the
production facility is put in service and is subject to aggregate caps for
each income tax year for which the credit can be claimed. Additionally,
the credit is subject to recapture if the sustainable aviation fuel production
of a facility comprises less than 60% of the total fuel production of the
facility in any of the 5 taxable years immediately following the taxable
year in which the facility was placed in service.
Section 11 creates a mechanism to allow for advance payment of
income tax credits to a motor vehicle dealer or financing entity that has
been assigned the innovative motor vehicle tax credit or innovative truck
tax credit, or to a qualified retailer for the electric bicycle tax credit.
Section 12 creates a sales and use tax exemption for a fleet vehicle
that is a heavy-duty truck or a medium-duty truck. For tax years
commencing on or after January 1, 2024, but before January 1, 2028, the
exemption amount is equal to 50% of the purchase price of the vehicle,
and for tax years commencing on or after January 1, 2028, but before
January 1, 2033, the exemption amount is equal to 60% of the purchase
price of the vehicle.
Section 13 terminates an existing sales and use tax exemption for
heat pump systems and heat pump water heaters used in commercial or
residential buildings so that it is allowed only for income tax years
beginning on or after January 1, 2023, but before January 1, 2024.
Section 14 creates a sales and use tax exemption for all sales to an
eligible taxpayer of heat pump technology and equipment necessary for
the proper functioning of a thermal energy network and for the storage
and use of the same for income tax years commencing on or after January
1, 2024, but before January 1, 2033.
Section 15 reduces the severance tax credit allowed for oil and gas
production. Under current law, the amount of credit allowed is calculated
by applying rate of 87.5% of all ad valorem taxes assessed during the
taxable year for accrual basis taxpayers or paid during the taxable year by
cash basis taxpayers upon oil and gas, oil and gas leaseholds and
leasehold interests, and oil and gas royalties and royalty interests. The bill
reduces the rate to 75% for 2024 and 2025. For tax years beginning on
and after January 1, 2026, the bill modifies the calculation for the oil and
gas tax that otherwise would have been implemented in tax year 2025 by
making a parallel downward adjustment so that the amount of credit is
derived by multiplying 65.625% of the gross income of the well by the
mill levy fixed in the prior calendar year.
Section 16 requires that for state fiscal years 2024-25 through
2032-33, the revenue collected that is equal to the amount attributable to
the decreased amount of severance tax credit allowed for oil and gas
production is credited to the general fund; except that on July 1, 2025, the
revenue must first be credited to the cash funds used for state fiscal years
2023-24 and 2024-25 by the office for the administration of the tax
credits created by the bill and the remaining money is credited to the state
general fund. Additionally, the stakeholder group that was required to
convene pursuant to HB22-1391 is required to additionally consider
long-term changes for the severance tax credit for oil and gas production.
Section 17 creates a partial, temporary, and specific ownership tax
exemption for new class A or class B personal property that is a fleet
vehicle and meets the definition of a category 7 truck for purposes of the
innovative truck tax credit.
Section 18 and section 19 allow for cities and counties to opt out
of the sales and use tax exemption created for sales of category 7 fleet
vehicles that are heavy-duty trucks or medium-duty electric trucks, sales
to an eligible taxpayer of heat pump technology and equipment necessary
for a proper functioning of a thermal energy network, and for the storage
and use of the same for income tax years commencing on or after January
1, 2024, but before January 1, 2033.
Section 20 gives the office the authority to expend money from the
industrial and manufacturing operations clean air grant program cash fund
for state fiscal years 2023-24 and 2024-25 to administer and implement
the industrial clean energy tax credit that is created in section 5.
Section 21 gives the office the authority to expend money from the
geothermal energy grant fund for state fiscal years 2023-24 and 2024-25
to administer and implement the tax credit for expenditure made in
connection with a geothermal energy project that is created in section 6
and the geothermal electricity generation production tax credit that is
created in section 7.
Section 22 gives the office the authority to expend money from the
community access to electric bicycles cash fund for state fiscal years
2023-24 and 2024-25 to administer and implement the electric bicycle tax
credit created in section 9 for state fiscal years 2023-24 and 2024-25.
Section 23 gives the office the authority to expend money from the
electrifying school buses grant program cash fund for state fiscal years
2023-24 and 2024-25 to administer and implement the changes made to
the innovative motor vehicles and innovative trucks tax credits set forth
in sections 2 and 3.

• April 28, 2023: Senate Appropriations Committee Report
• April 27, 2023: Senate Finance Committee Report
• April 21, 2023: House Appropriations Committee Report
• April 13, 2023: House Finance Committee Report
• April 06, 2023: House Energy & Environment Committee Report
• April 06, 2023: House Energy & Environment Committee Report

Transportation Legislation Review Committee. For 10 income
tax years, section 1 of the bill creates a refundable income tax credit for
purchasing driver education and training for a minor. The amount of the
credit is the amount spent on driver education and training, but cannot
exceed $1,000 per student. To claim a credit, an individual must provide
the department of revenue (department) with a receipt for the amount paid
if the department requests the receipt.
Currently, a minor who is under 18 years of age may be issued a
driver's license or temporary driver's license if the minor has held an
instruction permit for 12 months and has completed 50 hours of
supervised driving, including 10 hours of night driving. Section 2 adds
the requirements that the applicant must:
  • Complete a 30-hour driver education course, which may
include an online course, approved by the department; and
  • Receive at least 6 hours of behind-the-wheel driving
training with a driving instructor or, for minors who live in
rural areas of the state, 12 hours of behind-the-wheel
training with a parent, a legal guardian, or an alternate
permit supervisor.
Additionally, section 2 eliminates the current instructional
requirements for minors under 16 and one-half years of age to hold an
instruction permit for 12 months, complete 50 hours of supervised
driving, including 10 hours of night driving, and receive 6 hours of
behind-the-wheel driving training with a driving instructor or, if the
minor lives more than 30 miles from a business offering driving
instruction, at least 12 hours of training from a parent, legal guardian, or
responsible adult to be eligible for issuance of a driver's license.
Section 2 also adds a requirement that a minor who is 18 years of
age or older and under 21 years of age must successfully complete a
4-hour prequalification driver awareness program approved by the
department to be issued a driver's license or temporary driver's license.
Current law authorizes the department to issue an instruction
permit to a minor if the minor meets one of the following conditions:
  • A minor who is 16 years of age or older need not complete
a driver education course;
  • A minor who is at least 15 and one-half years of age but
under 16 years of age must have completed a driver
education course or a 4-hour driver awareness course; or
  • A minor who is 15 years of age or older but under 15 and
one-half years of age must have completed a driver
education course.
Sections 2 and 3 eliminate the tiered system and require all minors
who are under 18 years of age to complete a 30-hour driver education
course and minors who are 18 years of age or older but under 21 years of
age to complete a 4-hour driver awareness course.
Section 5 prohibits a person who has been convicted of certain
violent or sexual crimes from providing behind-the-wheel driving
instruction to minors. A commercial driving school is prohibited from
employing such a driving instructor to provide behind-the-wheel driving
instruction to minors. Each instructor employed by a commercial driving
school must obtain a fingerprint-based criminal history record check to
verify that the instructor has not committed a disqualifying crime.

• February 02, 2023: Senate Finance Committee Report
• February 02, 2023: SB23-011 L.002 Senate Finance
• February 02, 2023: Senate Finance Committee Report
• January 23, 2023: Senate Transportation & Energy Committee Report
• January 23, 2023: Senate Transportation & Energy Committee Report

For property tax years commencing on or after January 1, 2023, the
bill specifies that a senior is deemed to be a 10-year owner-occupier of a
primary residence that the senior has owned and occupied for less than 10
years and therefore qualifies for the senior property tax exemption for the
residence if:
  • The senior would have qualified for the senior property tax
exemption for the senior's former primary residence but a
medical necessity required the senior to stop occupying the
former primary residence;
  • The senior has not previously received the exemption for a
former primary residence on the basis of medical necessity;
and
  • The senior has not owned and occupied another primary
residence since the senior first stopped occupying the
senior's former primary residence due to medical necessity.
Medical necessity is defined as one or more medical conditions
of a senior that a physician licensed to practice medicine in Colorado has
certified on a form developed by the state property tax administrator as
having required the senior to stop occupying the senior's prior primary
residence.
When applying for an exemption on the basis of medical necessity,
a senior must provide the form establishing proof of medical necessity.
For property tax years commencing on or after January 1, 2023,
but before January 1, 2028, the bill increases the maximum amount of
actual value of the owner-occupied residence of a qualifying senior or
veteran with a disability that is exempt from property taxation from
$200,000 to $300,000.
For property tax years commencing on or after January 1, 2028, the
bill increases the maximum amount of actual value of the owner-occupied
residence of a qualifying senior or veteran with a disability that is exempt
from property taxation from $300,000 to $500,000.

• February 09, 2023: Senate State, Veterans, & Military Affairs Committee Report
• February 09, 2023: Senate State, Veterans, & Military Affairs Committee Report

In 2021, the 163 pages of SB21-260 created many fees to improve transportation, including a number of retail delivery fees, that together will deliver over $200 million/year to preserve, improve, and expand existing transportation infrastructure and expand the electric vehicle charging network. SB23-143 modifies SB21-260 by exempting businesses with under $500,000 in sales and new businesses (until they’ve made $500,000 in sales) from the retail delivery fee. Currently the retail delivery fee must be shown separately, just like sales tax. This would let the retailer include the fee, twenty seven cents ($.27) per delivery, in the delivery price or charge, or continue to show it separately.

The League believes in progressive personal and business taxes, grounds for supporting this bill’s exemption from the retail delivery fees for small businesses. [LWVCO 2022-2023 Impact on Issues p 30]

The Fiscal Note assumes retailers with sales under $500,000 will remain constant at 1.5 of total retail delivery fees collected, resulting in a $1.4M decrease in state revenue in 2023-24 and an estimated

Status: on 2/21/22 the Finance referred the bill to Appropriations on a vote of 7-0.

The Revenue Team recommends an amendment: that out-of-state retailers with less than $100,000 in Colorado sales be exempt from collecting Colorado’s retail delivery fee, to be consistent with their exemption to collect sales tax if their sales are less than $100,000.

Currently, the state and several state enterprises impose fees on
retail sales of taxable tangible personal property delivered by motor
vehicle to a location in the state. These fees are collectively known as the
retail delivery fee (RDF), and a retailer who makes a retail delivery is
required to add the RDF to the price of the retail delivery, collect it from
the purchaser, and pay the RDF revenue to the department of revenue
(department), which distributes the revenue to the appropriate cash funds.
The department generally administers the RDF in the same manner
as the state sales and use tax. The bill modifies this administration by
permitting a retailer to pay the RDF on behalf of the purchaser. If the
retailer elects to pay the RDF, then the retailer is:
  • Not required to add the RDF to the price of the retail
delivery, separately itemize the RDF, or collect the RDF
from the purchaser, who is not liable for the amount nor
eligible for a refund of an erroneously paid RDF; and
  • Required to remit the RDF on the date that would be
required if the RDF had been received from the purchaser
on the date of the retail delivery.
The department is required to waive any processing costs for a
retailer's electronic payment by automated clearing house (ACH) debit of
the RDF if the charges would exceed the amount of the RDF revenue
being remitted.
The bill creates an exemption from the RDF for a retail delivery
by a qualified business, which is a business that has $500,000 or less of
retail sales in the prior year or is new, that applies retroactively to when
RDFs were first imposed. A purchaser is not eligible for a refund of any
RDF that is collected and remitted to the department by a qualified
business prior to the effective date of the bill.
The bill also creates a primary definition for retail delivery that
is cross-referenced in other RDF provisions, and related to this change,
a definition of retail sale is repealed where the cross reference makes
it unnecessary.

• April 14, 2023: House Appropriations Committee Report
• March 20, 2023: House Finance Committee Report
• March 20, 2023: House Finance Committee Report
• March 03, 2023: Senate Appropriations Committee Report
• March 03, 2023: Senate Appropriations Committee Report
• February 21, 2023: Senate Finance Committee Report
• February 21, 2023: Senate Finance Committee Report

Currently, the governing body of any municipality in the state may,
with voter approval, establish a downtown development authority
(authority) to assist the municipality in the development and
redevelopment of its central business district. An authority may, if
approved by the voters, use tax increment financing (TIF) to generate
capital by dedicating growth in property tax or sales tax revenue to
finance projects within the boundaries of the authority. The tax increment
is the amount of additional tax revenue represented by the difference
between the actual amount of tax revenue collected after the TIF is
established and the base year tax revenue within the boundaries of the
authority. The revenue that is attributed to the growing tax base is the
incremental revenue used to finance the redevelopment projects within
the boundaries of the authority (incremental revenue).
Currently, an authority may use a TIF arrangement for a period of
30 years with the option for one 20-year extension. For property tax
revenue only, the bill creates automatic and recurring additional 20-year
extension periods during which an authority may use a TIF arrangement,
unless the governing body of the municipality opts out of the extensions.
The first additional extension period begins upon the expiration of the
original 50-year period.
During the 20-year extension period allowed pursuant to current
law, 50% of the incremental revenue is allocated to a special fund of the
municipality that created the authority (special fund), to be used to
finance projects within the boundaries of the authority. The other 50% of
the incremental revenue is allocated to the other governmental entities
that levy property taxes within the boundaries of the authority, unless the
municipality and all of the other governmental entities reach an
alternative agreement. For the automatic and recurring 20-year extension
periods, the bill continues the default split of the incremental revenue
unless the municipality and all of the other governmental entities reach an
alternative agreement.
During the last 10 years of a 20-year extension allowed pursuant
to current law, the base year revenue for the TIF is recalculated every
year. For an automatic and recurring 20-year extension period, the bill
requires the base year revenue to be recalculated every year.
Pursuant to current law, the governing body of a municipality must
incur any debt to be used to finance the projects of the authority. The bill
allows a municipality and an authority to enter into an intergovernmental
agreement through which the municipality may delegate to the board of
the authority the power to incur debt and to pledge money in a special
fund of the municipality for the payment of the debt. The bonds issued by
the board must be authorized by a resolution of the board and must be
issued by the authority acting on behalf of the municipality.
1

• April 17, 2023: House Finance Committee Report
• March 23, 2023: Senate Finance Committee Report
• March 23, 2023: Senate Finance Committee Report

The bill allows a data center business or a data center operator (taxpayer) to claim a refund of all state sales and use tax that the taxpayer paid for construction materials or data center equipment that is for the construction or operation of an eligible data center.  The bill does require 10 employees and an investment of $25 million to qualify.

Purpose: This bill is a proposal to essentially expand the state manufacturing exemption to the data centers, but also exempt the costs of the physical building from sales and use tax.  

 Fiscal Note

 The fiscal note for SB23-207 has not yet been produced.

League position:

The League of Women Voters believes responsible government should maintain an equitable and flexible system of taxation, with minimal tax preferences. LWVUS Impact on Issues 2022-2024 pp 134-135

LWVCO has supported simplified tax codes that still require as many people as possible to participate in funding state needs, commensurate with ability to pay.

Reasons For Opposing:

This bill dilutes the tax base.  While there is no fiscal note yet on this bill, we do know how the statute that it is attempting to imitate, diluted the tax base. When the manufacturing exemption bill was passed, it was projected to cost the first year, one million dollars.  It actually cost ten million dollars and the costs have climbed vertical since that time.  This bill will be very expensive, because of the minimum investment of $25 million dollars; each $25 million invested in a data center will lose well over a quarter million from state revenue.

LWVCO Opposes this bill.

For the state fiscal year beginning July 1, 2025, and for each state
fiscal year thereafter through the state fiscal year beginning July 1, 2034,
the bill allows a data center business or a data center operator (taxpayer)
to claim a refund of all state sales and use tax that the taxpayer paid for
construction materials or data center equipment that is for the
construction or operation of an eligible data center.
To be eligible to claim a sales and use tax refund, the taxpayer is
required to obtain certification from the Colorado office of economic
development (office) stating that the data center is an eligible data center
and that the taxpayer may claim a refund of state sales and use tax
(certification). An eligible data center is defined as a data center that
creates a specified number of jobs, generates a specified amount of
revenue, and requires a specified amount of power. The sales and use tax
refund is allowed only for the sale, storage, or use of construction
materials or data center equipment that occurs on or after the date that the
taxpayer obtains certification from the office.
When a taxpayer believes that the data center that will be identified
in a sales and use tax refund application satisfies the criteria to be an
eligible data center, the taxpayer may apply to the office for the
certification. The taxpayer must demonstrate in the certification
application that the data center is an eligible data center and the taxpayer
is required to submit any documentation or proof that the office deems
necessary to determine whether a data center satisfies the criteria to be an
eligible data center.
If, based on the information provided to the office and after
consultation with the economic development commission, the office
determines that a data center satisfies the criteria to be an eligible data
center, the office is required to notify the department of revenue
(department) and issue a certification to the taxpayer.
To claim a sales and use tax refund, a taxpayer must submit a
refund application and a copy of the certification from the office to the
department. A taxpayer is required to submit certain documentation with
the application.
The bill allows a taxpayer to assign a certification to specified
types of parties after it is awarded.
The bill requires the office and the department to prepare an
annual report including information regarding eligible data centers and
state sales and use tax refunds allowed. The office is required to submit
the report to the finance committees of the house of representatives and
senate.

• April 11, 2023: Senate Finance Committee Report

Section 3 of the bill requires the secretary of state to refer a ballot
issue to voters at the November 2023 election that asks voters whether
property taxes should be reduced and that seeks voter approval to retain
and spend excess state revenues that will be used to backfill some of the
reduced property tax revenue. Most of the bill only becomes effective if
the voters approve the ballot issue.
Local government property tax revenue limit. Beginning with
the 2023 property tax year, section 6 establishes a limit on specified
property tax revenue for local governments, excluding those that are
home rule and school districts, that is equal to inflation above the property
tax revenue from the prior property tax year (limit). A local government
may establish a temporary property tax credit, which does not change the
gross mill levy, that is up to the number of mills necessary to prevent the
local government's property tax revenue from exceeding the limit.
Alternatively, the governing board may approve a mill levy that would
cause the local government to exceed the limit, if the governing board
approves the mill levy at a public meeting that meets certain criteria.
Valuation changes. The valuation for assessment (valuation) of
nonresidential real and personal property, excluding producing mines and
lands or leaseholds producing oil or gas, is based on an assessment rate
of 29% of actual value, but currently, there are temporary reductions in
the valuation for certain subclasses of property. Section 8 creates the
additional temporary reductions. For the 2023 property tax year:
  • For lodging property, property listed under any improved
commercial subclass code, and all other nonresidential
property, excluding agricultural property and renewable
energy production property, the assessment rate is reduced
from 27.9% to 27.85%;
  • For renewable energy agricultural land, which is a newly
created subclass of agricultural property that is valued
under section 7, the assessment rate is reduced from 26.4%
to 21.9%.
Thereafter, the assessment rate for lodging property and all
nonresidential property, excluding agricultural property and renewable
energy production property and property that is not under a vacant land
subclass, is reduced from 29% to:
  • 27.85% for the 2024 through 2026 property tax years;
  • 27.65% for the 2027 and 2028 property tax years;
  • 26.9% for the 2029 and 2030 property tax years; and
  • 25.9% or 26.9% for the 2031 and 2032 property tax years,
depending on the increase in the valuation in the 32
counties with the smallest increases from the 2030 to 2031
property tax years (revenue increases).
The assessment rate for agricultural property, excluding renewable
energy agricultural land, and renewable energy property is reduced from
29% to:
  • 26.4% for the 2025 through 2030 property tax years; and
  • 25.9% or 26.4% for the 2031 and 2032 property tax years,
depending on the increase in the valuation in the 32
counties with the smallest revenue increases.
The assessment rate for renewable energy agricultural land is
reduced from 29% to 21.9% for the 2024 through 2032 property tax
years.
Beginning with the 2033 property tax year, all of the temporary
valuation reductions expire and the valuation of all nonresidential real
property is 29% of the actual value of the property.
The valuation of residential real property is based on an
assessment rate of 7.15% of actual value, but currently, there are
temporary reductions in the valuation. Section 9 further reduces the
valuation of residential real property. For the 2023 property tax year, the
valuation is reduced from 6.765% of the amount equal to the actual value
minus the lesser of $15,000 or the amount that causes the valuation to be
$1,000 (alternate amount) to 6.7% of the amount equal to the actual value
minus the lesser of $40,000 or the alternate amount.
For the 2024 property tax year, the valuation is reduced as follows:
  • For multi-family residential real property, the valuation is
reduced from 6.8% of the actual value to 6.7% of the
amount equal to the actual value minus the lesser of
$40,000 or the alternate amount; and
  • For all other residential real property, the valuation is
reduced from an estimate of 6.98% of the actual value to
6.7% of the amount equal to the actual value minus the
lesser of $40,000 or the alternate amount.
For the 2025 through 2032 property tax years:
  • For multi-family residential real property and primary
residence real property, including multi-family primary
residence real property, the valuation is reduced from
7.15% of the actual value to 6.7% of the actual value minus
the lesser of $40,000 or the alternate amount;
  • For qualified-senior primary residence real property,
including multi-family qualified-senior primary residence
real property, the valuation is reduced from 7.15% of the
actual value to 6.7% of the amount equal to the actual value
minus $140,000 or the alternate amount; and
  • For all other residential real property, the assessment rate
is reduced from 7.15% to 7.1%.
Beginning with the 2033 property tax year, all of the temporary
valuation reductions expire and the valuation of all residential real
property is 7.15% of the actual value of the property.
The bill also establishes that all of the temporary reductions in
valuation for residential and nonresidential property created in the bill are
contingent on the state's ability to retain and spend state surplus up to the
proposition HH cap. If, for any reason, excluding a legislative enactment
by the general assembly, the state is not permitted to retain and spend this
money, then the temporary reductions in the bill do not apply.
Section 11 creates the residential subclass of primary residence
real property for owner-occupiers and establishes administrative
procedures related to the classification that are based on the procedures
for the homestead exemption, with those procedures expanded to treat
civil union partners like spouses. Section 11 also creates the residential
subclass of qualified-senior primary residence real property, which is a
property with an owner-occupier who previously qualified for the senior
homestead exemption for a different property and who does not qualify
for the exemption for the current property tax year.
Sections 1, 12, 13, 15, and 16 delay deadlines as necessary due to
the valuation changes for the 2023 property tax year.
The state is currently required to reimburse local governmental
entities for property tax revenue lost as a result of the reductions in
valuation enacted in Senate Bill 22-238. Section 14 modifies this backfill
mechanism by:
  • Specifying that the amount of revenue lost for a property
tax year is based on a local governmental entity's mill levy
for the 2022 property tax year, excluding specified mills;
  • Including the additional property tax revenue reductions
that result from the bill in the backfill for the 2023 property
tax year;
  • Eliminating the maximum amount of the backfill for the
2023 property tax year that is a refund of excess state
revenues;
  • Extending the backfill for the 2024 through 2032 property
tax years for the valuation reductions in the bill, but making
a local governmental entity that has an increase in real
property total valuation of 20% or more from the 2022
property tax year ineligible for the backfill;
  • Creating the local government backfill cash fund, which
includes a $128 million general fund transfer, and requiring
the money from the fund to be used to backfill revenue to
local governments beginning with the 2024 property tax
year; and
  • Beginning with the 2024 property tax year, proportionally
reducing the amount that each eligible local government
receives, if necessary to avoid exceeding the total amount
that is available for the backfills statewide.
Section 14 also modifies the backfill mechanism to treat cities and
counties as counties instead of municipalities, and this change is not
contingent on voter-approval of the ballot issue. Section 18 requires the
department of revenue to calculate the amount of excess state revenues
that will be refunded for the fiscal year 2022-23 with and without the
changes from the bill.
Voter-approved revenue change. If the voters approve the
referred ballot issue, then the state will be authorized to retain and spend
revenues up to the proposition HH cap, created in section 3. For the
2023-24 fiscal year, the proposition HH cap is equal to the excess state
revenues cap for the prior fiscal year, adjusted for inflation plus 1% and
population changes. Thereafter, the proposition HH cap is equal to the
proposition HH cap for the prior fiscal year, adjusted for inflation plus
1% and population changes. The proposition HH cap is also annually
adjusted for the qualification or disqualification of enterprises and debt
service changes.
If the general assembly does not enact assessment rates for the
2033 property tax year that are the same or lower than the assessment
rates for the 2032 property tax year described above, then the proposition
HH cap is reduced to be equal to the excess state revenues cap, and the
state will retain $0 under this authority beginning with the 2031-32 fiscal
year. Thereafter, the general assembly may partially or wholly restore the
proposition HH cap without additional voter approval if the general
assembly enacts valuation reductions equal to or greater than those for the
2032 property tax year.
The amount retained under this authority is first used in the
following fiscal year to backfill certain local governments for the reduced
property tax revenue as a result of the property tax changes in the bill and
Senate Bill 22-238, and the remainder is transferred to the state education
fund to offset the revenue that school districts lose as a result of the
property tax changes. Section 5 requires the state controller to include the
new voter-approved revenue change in the annual report on TABOR
revenues.
Sections 2, 4, 10, and 17 make conforming amendments related
to the valuation changes and related procedures and the voter-approved
revenue changes.

• May 06, 2023: House Appropriations Committee Report

Section 1 of the bill specifies that when a property tax assessor
values real property, the property tax assessor must consider:
  • The current use;
  • Existing zoning and other governmental land use or
environmental regulations and restrictions;
  • Multi-year leases or other arrangements affecting the use of
or income from real property;
  • Easements and reservations of record; and
  • Covenants, conditions, and restrictions of record.
Beginning January 1, 2024, section 2 requires certain counties to
use an alternative procedure to determine objections and protests of
property tax valuations in any year of general reassessment of real
property that is valued biennially.
Currently, at the request of a taxpayer, a property tax assessor is
required to provide the taxpayer with certain data that the assessor used
to determine the value of the taxpayer's property. Section 3 clarifies that
the data the assessor is required to provide must include the primary
method and rates the assessor used to value the property.

• May 05, 2023: House Finance Committee Report
• May 02, 2023: Senate Finance Committee Report