The act requires the state treasurer to transfer $8,435,000 from the general fund to the department of state cash fund on July 1, 2022, for use by the department of state to offset the costs of reducing certain of the secretary of state's business-related fees during state fiscal year 2022-23. (Note: This summary applies to this bill as enacted.)
The act: Expands the definition of "service provider" in the employment support and job retention services program (program) to include faith-based organizations and churches, community centers, neighborhood organizations, food banks, outreach providers, and local entities that provide employment services to community members; Modifies the eligibility criteria for receiving services and the list of reimbursable services under the program; Appropriates $250,000 annually from the general fund to the employment support and job retention services program cash fund; Extends the program until September 1, 2029; and Modifies the current reporting requirements to require the division of employment and training in the department of labor and employment to report on the efficacy of the program during the department's presentations at the "State Measurement for Accountable, Responsive, and Transparent (SMART) Government Act" hearings.(Note: This summary applies to this bill as enacted.)
The act requires the state treasurer to transfer $3,900,000 from the general fund to the Colorado DRIVES vehicle services account in the highway users tax fund. This transfer allows the department to maintain the current driver license fee while supporting the solvency of the fund. (Note: This summary applies to this bill as enacted.)
The act appropriates $25 million from the affordable housing and home ownership cash fund, which money originates from the general fund, to the department of local affairs (DOLA) for expansion of the middle income access program created and administered by the Colorado housing and finance authority (CHFA). The act requires the division of housing within DOLA to contract with CHFA for administration of the money appropriated. (Note: This summary applies to this bill as enacted.)
The "SALT Parity Act" was enacted in 2021 and, for income tax years commencing on or after January 1, 2022, it allowed pass-through entities to elect to pay state income tax at the entity level, which allows the entity to claim an unlimited deduction at the federal level for state and local taxes paid. While this election reduces federal taxable income for the pass-through entity, it does not reduce or increase Colorado taxable income under current law based on additions and subtractions (deductions) to the state income tax. The act converts the state income tax deductions created to keep state revenue neutrality into a tax credit and makes provisions of the "SALT Parity Act" retroactive to January 1, 2018. An S corporation or a partnership must make the retroactive election on or after September 1, 2023, but before July 1, 2024, in a composite amended tax return for all of the years for which the election is made that is filed on behalf of the S corporation or partnership and the electing pass-through entity owners. (Note: This summary applies to this bill as enacted.)
Senate Bill 21-260, concerning the sustainability of the transportation system in Colorado: Created phased-in road usage fees on gasoline and diesel that increase from 2 cents per gallon for state fiscal year (FY) 2022-23, when they are first imposed, to 8 cents per gallon for FYs 2028-29 through 2031-32, and thereafter continue to increase to account for inflation; and Temporarily reduced the amount of the road safety surcharge, which is imposed annually when a motor vehicle is registered by $11.10 for registration periods beginning in 2022 and $5.55 for registration periods beginning in 2023. The act delays the initial imposition of the road usage fees from July 1, 2022, to April 1, 2023, and increases the amount of the reduction in the road safety surcharge for registration periods beginning in 2023 from $5.55 to $11.10. The act also requires transfers to be made on July 1, 2022, to hold the department of transportation, counties, and municipalities harmless from the reductions in road usage fee and road safety surcharge revenue as follows: $47.1 million from the general fund to the state highway fund; and $31.4 million from the general fund to the highway users tax fund. For implementation of the act, $5,850 is appropriated from the general fund to the department of revenue for use by the division of motor vehicles. (Note: This summary applies to this bill as enacted.)
For the 2023 property tax year: Section 1 of the act reduces the valuation for assessment of nonresidential property, excluding agricultural and renewable energy production nonresidential property, from 29% of the actual value of the property to 27.9% of the actual value of the property; Section 2 reduces the valuation for assessment of residential property, including multi-family residential property, to 6.765% of the actual value of the property; and Sections 1 and 3 reduce the actual value used for purposes of the valuation for assessment of commercial real property by $30,000 and of residential real property by $15,000, but in either case to no less than $1,000. For the 2024 property tax year: Section 1 continues the valuation for assessment of real and personal property that is classified as agricultural property or renewable energy production property at 26.4% of the actual value of the property; Section 2 establishes the valuation for assessment for all residential real property other than multi-family residential real property as the percentage of the actual value of such property determined by a calculation made by the property tax administrator as required by section 4; and Section 2 also establishes the valuation for assessment for multi-family residential real property as 6.8% of the actual value of the property. Section 4 requires the adjustment of the ratio of valuation for assessment for all residential real property other than multi-family residential real property for the 2024 property tax year so that the aggregate decrease in local government property tax revenue during the 2023 and 2024 property tax years, as a result of the act, equals $700 million. Section 5 requires the state treasurer to reimburse counties for the reduction in property tax revenue resulting from the act during the 2023 property tax year and requires the property tax administrator, using information provided by each county treasurer, to report this amount to the general assembly. The state treasurer is required to fully reimburse any county that: Had an increase of less than 10% in assessed value of real property between the 2022 and 2023 property tax years; and Has a population of 300,000 or fewer. The state treasurer is also required to reimburse a county 90% of the amount of the reduction if the county: Had an increase of 10% or more in assessed value of real property between the 2022 and 2023 property tax years; and Has a population of 300,000 or fewer. Lastly, the state treasurer is also required to reimburse any county that does not qualify for full or 90% reimbursement 65% of the amount of the reduction excluding the aggregate decrease in local government property tax revenue during the 2023 and 2024 property tax years, as a result of the act for municipalities, fire districts, health services districts, water districts, sanitation districts, school districts, and library districts in those counties. If municipalities, fire districts, health services districts, water districts, sanitation districts, and library districts in those counties had an increase of less than 10 % in assessed value of real property between the 2022 and 2023 property tax years, the state treasurer is required to reimburse the entire amount of the aggregate decrease in local government property tax revenue for those local governmental entities during the 2023 property tax years, as a result of the act. If municipalities, fire districts, health services districts, water districts sanitation districts, and library districts in those counties had an increase of 10% or more in assessed value of real property between the 2022 and 2023 property tax years, the state treasurer is required to reimburse 90% of the aggregate decrease in local government property tax revenue for those local governmental entities during the 2023 property tax years, as a result of the act. County treasurers must then distribute these reimbursements to the local governmental entities, excluding school districts, within the treasurer's county as if the revenue had been regularly paid as property tax. The lesser of $240 million of reimbursement or the amount of reimbursement that can be paid from such excess state revenues must be paid as a refund of state fiscal year 2022-23 excess state revenues that are not being refunded through specified existing refund mechanisms, and the rest of the reimbursement must be paid from the general fund. For school districts, section 6 requires the state treasurer to transfer $200 million from the general fund to the state public school fund to offset school district property tax revenue reductions. Section 5 also requires the property tax administrator to prepare a report that identifies the aggregate reduction in local government property tax revenue during the 2023 property tax year resulting from the act. (Note: This summary applies to this bill as enacted.)
The act permits a retailer with total taxable sales in the amount of $100,000 or less for any filing period to retain 5.3% of the sales tax reported as compensation for the retailer's expenses incurred in collecting and remitting the tax (vendor fee) for sales made in 2023, rather than retaining a 4% vendor fee, which is what current law allows. The act also clarifies that the calculation of the amount that is credited to the housing development grant fund is only based on the changes to the vendor fee from House Bill 19-1245, and not on any subsequent modifications, including the changes made in the act. The act allows the executive director of the department of revenue to deduct processing costs from the electronic payment of taxes and fees in lieu of imposing a convenience fee. (Note: This summary applies to this bill as enacted.)
The property tax administrator is required by law, after consultation with the advisory committee to the property tax administrator and subject to the approval of the state board of equalization, to prepare and publish manuals, appraisal procedures, instructions, and guidelines (property tax materials) concerning the administration of property tax. Beginning January 1, 2023, section 1 of the act requires the administrator to conduct a public hearing on a proposed change to the property tax materials before submitting the proposed change to the advisory committee to the property tax administrator. The administrator must publish notice of the hearing and mail notice to those people who so request. At the hearing, interested persons may submit information and the administrator is required to consider any submissions. Any interested person may also file a written petition to the administrator for the issuance, amendment, or repeal of any property tax materials. Currently, a taxpayer who wishes to protest the valuation of their taxable real property must file a notice of their objection and protest with the assessor by June 1. Sections 3 and 4 extend this deadline to June 8. Section 4 also requires an assessor who discovers any error that impacts the valuation of a class or subclass of property to recommend to the county board of equalization an adjustment to the class or subclass of property to correct the error. Section 5 requires the state board of assessment appeals to advance an appeal concerning the valuation of rent-producing commercial real property on the board of assessment appeals' calendar when the taxpayer provides certain relevant information and requests an advancement on or before July 15 of the same calendar year. The board of assessment appeals may charge a fee to a taxpayer, if the board of assessment appeals advances the taxpayer's appeal. Section 6 places a 5% cap on the amount by which a valuation of property set by a county board of equalization can be increased on appeal. $2000 is appropriated from the general fund to the department of local affairs for use by the board of assessment appeals for implementation of the act. (Note: This summary applies to this bill as enacted.)
The act updates the "Victim Rights Act" (act). The purpose of the act is to ensure all victims of crimes are protected by law enforcement agencies, prosecutors, and judges. The act updates include: Allowing a victim or the victim's designees to appear in court proceedings in person, by phone, or virtually by audio or video, or similar technology; Establishing for victims the right to receive a free copy of the initial incident report from the investigating law enforcement agency that includes, at a minimum, the victim's name, the offender's name, the date of the crime, the charges, and a summary of the incident. The investigating law enforcement agency is required to notify the district attorney of the information the victim received in the incident report and when it was provided to the victim. The district attorney is required to provide this information to any defendant involved in the case through the discovery process. Requiring defendants to attend sentencing hearings in person, by phone, or virtually by audio or video, or similar technology, to hear the victim's impact statement, unless the court excludes the defendant; Clarifying that the prosecutor shall explain the defendant's sentencing terms to the victim; Requiring the court to provide the victim or the victim's designee with translation or interpretation services as needed during all critical stages of the hearing; Requiring a court to order a bond hearing in any case that falls under the act; Clarifying that a designee or designees may represent the interests of a victim who is deceased or incapacitated; Clarifying that a party issuing a subpoena pursuant to Rule 17 of the Colorado rules of criminal procedure for the production of a victim's privileged records or a subpoena requesting a victim's compensation records shall file specific information with the court and serve that information to any opposing party; and Clarifying that the court shall quash any subpoena and not receive any records protected by privilege, unless the court finds, based on evidence, that the victim expressly or impliedly waived the statutory privilege. The act outlines when the court shall determine whether to receive and release any records relating to the victim.(Note: This summary applies to this bill as enacted.)
In 2021, the general assembly enacted legislation, SB 21-262, concerning transparency for special districts, that, among other things, required the disclosure of property tax information to purchasers of newly constructed residences within the boundaries of metropolitan districts. As part of this required disclosure, SB 21-262 required the owner of the property to provide to the seller a copy of the most current county assessor's property tax certificate. The county assessors do not issue tax certificates. The tax certificate is issued by the county treasurer. The act corrects this incorrect statutory reference by requiring that each owner of real property that sells real property that includes a newly constructed residence, concurrently with or prior to the execution of a contract to sell the property, provide to the purchaser of the property a copy of the most current certificate of taxes due or tax statement issued by the county treasurer that is applicable to the property as an estimate of the sum of additional mill levies levied by other taxing entities that overlap the property in which the newly constructed residence is located. (Note: This summary applies to this bill as enacted.)
The act prohibits a prepaid inpatient health plan from: Requiring prior authorization for outpatient psychotherapy services; Retroactively recovering provider payments if a recipient was initially determined to be eligible for medical benefits or the prepaid inpatient health plan makes an error processing the claim but the claim is otherwise accurately submitted by the provider; and Retroactively recovering provider payments after 12 months from the date a claim was paid, except in certain circumstances. If a prepaid inpatient health plan retroactively recovers a provider payment that is equal to or greater than $1,000, the act requires the prepaid inpatient health plan to work with the provider to develop a payment plan if the provider requests a payment plan. (Note: This summary applies to this bill as enacted.)
