TITLE 39
Specific Taxes
ARTICLE 22. INCOME TAX
Part 5. Special Rules
39-22-124. Tax credit against state taxes - legislative declaration - hearing and appeals
Repealed 7/1/2010
39-22-537. Credit for personal property taxes paid - legislative declaration - definitions - repeal
(1) The
general assembly declares that the purpose of the tax expenditure in this
section is to assist small businesses in expanding their operations in Colorado.
(2) As used in this section, unless
the context otherwise requires:
(a) "Federal marginal income tax
rate" means the federal income tax rate at which an additional dollar of taxable
income would be taxed.
(b) "Inflation" means the annual
percentage change in the United States department of labor, bureau of labor
statistics, consumer price index for Denver-Aurora-Lakewood, all items and all
urban consumers, or its applicable predecessor or successor index.
(c) "Property tax" means the ad
valorem tax imposed pursuant to section 3 of article X of the state constitution
but does not include the graduated annual specific ownership tax imposed
pursuant to section 6 of article X of the state constitution.
(d) "Taxpayer" includes an
organization exempt from federal taxation pursuant to section 501 (c) of the
internal revenue code.
(3) (a) For any income tax year
commencing on or after January 1, 2015, but prior to January 1, 2019, a taxpayer
who qualifies under subsection (3)(b) of this section is allowed a credit
against the tax imposed by this article 22 that is equal to a percentage of the
property taxes paid for personal property in Colorado during the income tax
year. For a given income tax year, a taxpayer's percentage is equal to one
hundred percent minus the sum of the taxpayer's federal marginal income tax rate
for the year and the state income tax rate for the year; except that the
percentage is equal to one hundred percent for an organization that:
(I) Is exempt from federal taxation
pursuant to section 501 (c) of the internal revenue code; and
(II) Does not have business personal
property that is used in a trade or business on which the organization pays
unrelated business income tax.
(b) To qualify for a tax credit under
this section, a taxpayer must have fifteen thousand dollars or less worth of
personal property on which property taxes are paid in Colorado during an income
tax year commencing in 2015, or have less than an inflation-adjusted amount for
each income tax year thereafter. These annual limits are based on the total
actual value of the taxpayer's personal property.
(c) A taxpayer may not claim a tax
credit under this section for the payment of delinquent property taxes that were
owed for a prior property tax year.
(d) The amount of the credit under
this section that exceeds the taxpayer's income taxes due is refunded to the
taxpayer.
(4) To claim a credit under this
section, a taxpayer must submit to the department of revenue a copy of a
property tax statement described in section 39-10-103 for all of the taxpayer's
personal property for the property tax year for which the credit is claimed.
(5) The department of revenue shall
provide the joint budget committee with a copy of the portion of the 2017 tax
profile and expenditure report created pursuant to section 39-21-303 that
relates to the credit created in this section.
(6) This section is repealed,
effective July 1, 2021.
39-22-537.5. Credit for personal property taxes
paid - legislative declaration - definitions - repeal.
(1) The
general assembly declares that the purpose of the tax expenditure in this
section is to minimize the negative impact of the business personal property
tax on businesses.
(2) As
used in this section, unless the context otherwise requires:
(a)
"Property tax" means the ad valorem tax imposed pursuant to section 3 of
article X of the state constitution but does not include public utilities
assessed pursuant to section 39-4-102, and does not include the graduated
annual specific ownership tax imposed pursuant to section 6 of article X of
the state constitution.
(b)
"Taxpayer" includes an organization exempt from federal taxation pursuant to
section 501 (c) of the internal revenue code.
(3) (a)
For income tax years commencing on or after January 1, 2019, a Taxpayer is
allowed a credit against the tax imposed by this article 22 equal to the
property tax paid in Colorado during the income tax year on up to eighteen
thousand dollars of the total actual value of the taxpayer's personal
property.
(b) A
taxpayer may not claim a tax credit under this section for the payment of
delinquent property taxes that were owed for a prior property tax year.
(c) The
amount of the credit under this section that exceeds the taxpayer's income
taxes due is refunded to the taxpayer.
(4) To
claim a credit under this section, a taxpayer must submit to the department
of revenue a copy of a property tax statement described in section 39-10-103
for all of the taxpayer's personal property for the property tax year for
which the credit is claimed.
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