Colorado Bills

For income tax years commencing on or after January 1, 2018, but prior to January 1, 2022, the bill creates a state income tax credit for a donation a taxpayer makes to a sponsor that is used solely for the costs associated with an employer-assisted eligible activity in a rural area. The bill defines 'sponsor' to mean the Colorado Housing and Finance Authority, a housing authority operated by a county or municipality, or a nonprofit corporation that has been designated as community development corporation under the federal tax code. The amount of the credit allowed by the bill is 20% of the approved amount of the donation as documented in a form and manner acceptable to the department of revenue (department); except that the aggregate amount of the credit awarded to any one taxpayer is limited to $400 in any one income tax year. If the amount of the credit allowed exceeds the amount of the taxpayer's income tax liability in the income tax year for which the credit is being claimed, the amount of the credit not used as an offset against income taxes in such income tax year is not allowed as a refund but may be carried forward and applied against the income tax due in each of the 5 succeeding income tax years, but must first be applied against the income tax due for the earliest of the income tax years possible. A taxpayer claiming the credit allowed by the bill is required to submit, maintain, and record any information that the department may require by rule regarding the taxpayer's donation to the sponsor, including the certificate received evidencing the donation. The bill specifies various verification procedures that the taxpayer and sponsor must follow for the taxpayer to be able to claim the credit. The bill requires each sponsor that has issued certificates evidencing donations in a calendar year in the cumulative amount of $10,000 or more to report to the general assembly by the deadlines specified in the bill on the overall economic activity, usage, and impact to the state from the employer-assisted eligible activity for which it has certified a donation eligible for a tax credit under the bill. The bill requires the department and the division of housing within the department of local affairs (division) to promulgate any rules necessary to facilitate the effective implementation of this tax credit. The department and the division may each develop policies and procedures necessary to facilitate the effective implementation of the tax credit. The bill prohibits a taxpayer from claiming the tax credit under the bill for a donation for which the taxpayer is claiming any other state tax credit or deduction. By the deadlines specified in the bill, the division is required to provide the department with an electronic report on the taxpayers who have received a tax credit under the bill for the calendar year that conforms to the income tax year for which the credit is allowed. The bill specifies information the report must contain. The statutory provisions created by the bill are repealed, effective July 1, 2031. (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

The bill requires a school district to distribute revenue it receives from ongoing local property tax mill levies equally, on a per-student basis, to the school district charter schools. Under specified circumstances, the school district may distribute the revenue using a different calculation. The bill does not require a school district to redistribute to charter schools any amount of the mill levy revenue that it distributed in budget years before the 2017-18 budget year. The requirement to distribute local property tax mill levy revenue to the district charter schools is phased in over 3 years starting in the 2018-19 budget year. In that year, a school district must calculate the per-student amount based on 33% of the amount of local property tax revenue collected. In the 2019-20 budget year, the per-student amount is calculated based on 66% of the amount of revenue collected. In the 2020-21 budget year and each budget year thereafter, the per-student amount is calculated based on 100% of the amount of revenue collected. But, if a school district in the 2016-17 budget year distributed to the district charter schools more than the amount required for the 2018-19 budget year or the 2019-20 budget year, it must continue distributing the higher amount in each of those budget years. A school district may place a question on the ballot in the next school district election after the bill passes asking the school district voters whether they want the school district to distribute to the district charter schools the amount of local property tax mill levy revenue that was approved before July 1, 2017, as required in the bill. If a majority votes 'no', the local school board may choose whether to distribute any portion of the local property tax mill levy revenue to the district charter schools. If a majority votes 'yes', then the local school board must distribute the local property tax mill levy revenue to the district charter schools as required in the bill. The election does not apply to any local property tax mill levies that are approved on or after July 1, 2017. The bill creates the mill levy equalization fund for charter schools authorized by the state charter school institute (institute charter schools). The general assembly chooses whether to appropriate money to the fund. The department of education is required to distribute any amount appropriated to the institute charter schools on a per-pupil basis in recognition of the institute charter schools' inability to access any amount of local property tax mill levy revenue. (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

The bill contains a legislative declaration about the difficulties small businesses encounter when attempting to stay current with changing rules and new rules that affect their businesses. The bill identifies 4 specific actions that the executive branch could take to inform small businesses about proposed and new rules. The bill creates a system that gives state agencies discretion in imposing fines upon a business for a first-time offense of a minor violation. The agency's discretion applies to small businesses with 50 or fewer employees (business). Unless specifically stated otherwise in statute, a state agency has discretion to give the business an opportunity to cure the violation in 30 business days and to waive the penalties or fine if the minor violation is cured. If the business: Cures the minor violation within 30 days, the agency shall waive the penalties or fine or both; or Cures the minor violation after the 30-day cure period has run, the agency may reduce the penalties or fine in full or in part. The opportunity to cure a minor violation does not apply in cases where an agency is required by statute to assess a fine for noncompliance. The bill defines 'minor violation' as a violation that: Relates to operational or administrative matters such as record keeping, retention of data, or failing to file reports or forms; and Is enforced by a fine, either in total or in the aggregate, of $500 or less; and Meets one of the following conditions: The violation relates to a rule promulgated within the 12 months immediately preceding the alleged violation; or The violation relates to any rule and the business that has committed the minor violation has been operating as a business for less than 1 year prior to the violation. 'Minor violation' does not include: Any matter that places the safety of employees; other persons; or the public health, safety, or environment at risk; or Violations relating to: The issuance of or denial of benefits or compensation to employees; or Activities required by federal law. Each state agency shall conduct an analysis of noncompliance with its rules to identify rules with the greatest frequency of noncompliance, rules that generate the greatest amount of fines, how many first-time offenders were given the opportunity to cure a minor violation, and what factors contribute to noncompliance by regulated businesses. The agency shall consider and review what actions should be taken to address the issues identified. Any principal department that conducts an analysis of noncompliance with rules shall forward that analysis to the department of regulatory agencies, who shall compile and summarize those analyses into one combined analysis of noncompliance with rules. The department of regulatory agencies shall include that compiled analysis in its departmental presentation to the oversight legislative committee pursuant to the 'SMART Government Act'. (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

The bill requires: The state climate action plan to include specific, measurable goals, the achievement of which will both reduce Colorado's greenhouse gas emissions and increase Colorado's adaptive capability to respond to climate change, along with associated near-term, mid-term, and long-term deadlines to achieve the goals; and The annual climate report to the general assembly to include an analysis of the progress made in meeting the measurable goals and deadlines specified in the plan.(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

Members of the general assembly currently receive an annual salary of $30,000. For terms commencing on or after 2019, current law provides that the salary will be an amount equal to 25% of the total annual salary paid to the judges of the county court in a Class B county. For terms commencing on or after 2019 but prior to 2025, the bill establishes the salary for members of the general assembly at 25% of the amount of the total annual salary paid to judges of the county court in a Class B county as established in the 2016 long bill. (The 2016 long bill established the judges' salary at $152,466. Twenty-five percent of this amount would be $38,116.) Starting in 2025, the director of research of the legislative council would adjust this salary amount for inflation from 2019 through 2025, and then adjust the amount again every 2 years thereafter. (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

Section 2 of the bill requires an entity that services a student education loan pursuant to a contract with the federal government to be licensed by the administrator of the 'Uniform Consumer Credit Code'. 'Servicing' means receiving a scheduled periodic payment from a student loan borrower, applying the payments of principal and interest with respect to the amounts received from a student loan borrower, and similar administrative services. Section 4 makes the bill effective on September 1, 2018.(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

For income tax years commencing on or after January 1, 2019, but prior to January 1, 2022, the bill allows an individual taxpayer to claim an income tax credit for a contribution of money, securities, or property to an eligible endowment that is equal to 25% of the contribution. An 'eligible endowment fund' is defined in the bill as an endowment fund that is managed in accordance with the 'Uniform Prudent Management of Institutional Funds Act'. A Colorado charitable organization that receives the credit is required to provide a credit certificate to the taxpayer, who must submit the certificate to the department of revenue along with his or her tax return. The maximum credit an individual may claim for an income tax year is $25,000. Unused credits are not refunded but may be carried forward for up to 5 income tax years. A taxpayer may not claim the credit if he or she claims any other state income tax credit for the same charitable contribution. (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)