Rep. Donald Valdez

Effective January 1, 2021, the act transfers the function of issuing permits for the transportation of hazardous materials and nuclear materials by motor vehicle from the public utilities commission to the department of transportation. The act also reduces state fiscal year 2020-21 cash fund appropriations from the public utilities commission motor carrier fund to the public utilities commission for personal services and operating expenses by a total amount of $20,918. (Note: This summary applies to this bill as enacted.)

The act implements the recommendations of the department of regulatory agencies in its sunset review and report of the licensing of egg dealers by: Extending the program for 11 years, until September 1, 2031; Adding the regulation of non-chicken eggs from avian species and authorizing the commissioner of agriculture to adopt rules specifying how non-chicken eggs will be regulated; and Changing the fund where civil penalties are deposited from the inspection and consumer services cash fund to the general fund.(Note: This summary applies to this bill as enacted.)

Current law categorizes each county for purposes of establishing the salaries of elected county officers in the county. The statutory salary amounts are adjusted every 2 years for inflation and take effect for terms commencing after any change is made. The act modifies the categories of 2 counties with the accompanying percentage decrease in salary as follows: Alamosa county changes from category III-A to category III-B (7.7% decrease); and Yuma county changes from category IV-B to category IV-C (8.3% decrease).(Note: This summary applies to this bill as enacted.)

Current law provides 2 means by which veterans with qualifying disabilities may be exempted from paying vehicle ownership tax and registration fees: The first exemption is associated with the issuance of a disabled veteran license plate, but the second exemption is not specifically associated with the issuance of the disabled veteran license plate. The bill clarifies that a veteran who is disabled need not obtain the disabled veteran license plate to qualify for the second exemption.(Note: This summary applies to this bill as introduced.)

Statutory Revision Committee. Under current law, the income tax deduction for previously taxed income or gain for C corporations allows C corporations, when calculating their Colorado taxable income, to deduct from their federal taxable income any income or gain that was taxed by Colorado prior to 1965, to the extent that such income or gain is included in their current federal taxable income. The bill repeals this income tax deduction.(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

The bill specifies that motor vehicle investigators and criminal tax enforcement special agents are peace officers and must be certified by the peace officers standards and training board. (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

The act: Makes corrections to the penalty for a taxpayer's failure to pay the correct amount of sales taxes due or for a taxpayer's failure to account for sales taxes correctly so that the statute reads the way the department of revenue applies the law; Changes the penalty section for use tax collections so that it is the same as for sales tax collections; legislative history makes clear that the legislature has intended these sections to be the same, but over the years bills revising these sections did not successfully align the 2 sections; and Repeals a temporary partial sales tax rate reduction for a new or used commercial truck, truck tractor, tractor, semitrailer, or vehicle used in combination therewith that has a gross vehicle weight rating in excess of 26,000 pounds. While the rate reduction could still be used, it is preempted by a full rate reduction for low-emitting vehicles in another statutory section. Any vehicle that could qualify for the temporary partial rate reduction in a TABOR refund year already qualifies for the full exemption from sales or use tax under the other section, so the partial rate reduction is not used.(Note: This summary applies to this bill as enacted.)

The act: Repeals an income tax deduction for money earned on Colorado investment deposits issued by a qualified financial institution because the definition of "Colorado investment deposits" relies on the "Colorado Investment Deposit Act", which was repealed in 2004, so it is unlikely that there have been any new certificates of deposit issued since 2004; and there are also no known eligible certificates of deposit that still exist and thus there would be no allowable amount of interest earnings to subtract. Repeals 2 income tax deductions meant to correct for the difference between the standard deduction amounts for federal income tax filings that used to be called the "marriage penalty" approximately 15 years ago. The "marriage penalty" was addressed by Congress in 2003, so the deductions are no longer necessary. Repeals an income tax credit for estate taxes paid on the transfer of agricultural land. The Colorado estate tax is effectively zero because it is based on a federal credit in the provisions of the federal estate tax. The federal provision for the credit is not allowed for estates of decedents who passed away after December 31, 2004. Because the federal credit has not been extended, there is no state estate tax, and thus the income tax credit is not useable. Addresses some circular cross references within the statutory section. Corrects an issue in statute that erroneously requires nonresident beneficiaries to prepay income tax twice, once through estimated payments and again through tax withheld by the fiduciary.(Note: This summary applies to this bill as enacted.)

The act: Addresses an inconsistency in statute regarding section 39-21-113 (4), which prohibits the disclosure by the executive director of the department of revenue and his or her agents, clerks, and employees of information obtained during the course of investigations conducted by the department or disclosed in any document, report, or return filed in connection with the collection and payment of tax; various provisions of the section allow for exceptions to the prohibition, but not all of them are listed together and therefore the bill updates the section to reflect all the exceptions to the prohibition; Adds some missed mandatory electronic filing and payment requirements that didn't make it into the correct section of House Bill 19-1256, concerning electronic filing of certain taxes, which broadly authorized the department of revenue to promulgate rules requiring mandatory electronic filing and payment; and Fixes a conflict with regard to the tax threshold above which a taxpayer must remit estimated payments between 2 statutes that jointly impose payment requirements for severance tax on corporations.(Note: This summary applies to this bill as enacted.)

The act modifies the authority and duties of the county treasurer (treasurer) of each county. Treasurer's fees: The treasurer is required to charge and receive fees on all money received for town and city taxes. Current law also specifies that the fee for the collection of specific ownership taxes shall not be charged by the treasurer, as the fee is charged when the specific ownership tax is collected by the authorized agent. Section 1 of the act clarifies that the requirement to charge fees does not apply to the collection of specific ownership taxes. In addition, section 1 makes the fees that the treasurer is required to charge for research consistent with the fees charged pursuant to the "Colorado Open Records Act", and sections 1 and 14 make the fee charged for issuing an authentication of paid ad valorem taxes and a transportable manufactured home permit discretionary. Deputy treasurer: Current law authorizes a treasurer to appoint a deputy treasurer as necessary. Section 2 authorizes a treasurer to appoint a chief deputy and specifies that the chief deputy treasurer performs the duties of the treasurer if the treasurer is unable to perform such duties or if there is a vacancy in the treasurer's office. Receipts: Each treasurer is required to issue a receipt upon payment of any money to him or her. Sections 3 and 11 specify that if a person who has paid taxes wants a receipt for payment of taxes, the person shall request a receipt and the treasurer is required to issue such receipt upon request. Keeping a cash book: Current law requires each treasurer to keep a cash book with a record of every financial transaction in which the treasurer is involved. Section 4 repeals this requirement, as it is redundant to another statutory provision that requires each treasurer to keep a just and true account of the receipt and expenditure of all money that comes in or goes out of the treasurer's office. Definition of treasurer: For county purposes, "treasurer" is defined as the elected treasurer of a county or his or her appointed successor. However, the Weld county treasurer is appointed pursuant to the county's charter rather than elected. Section 5 modifies the definition of treasurer to include the treasurer or equivalent officer, as provided in the county's charter, for any home rule county. Conveyance of property: Current law specifies when the grantee or grantor of a conveyance of property will pay the taxes levied on the property if the conveyance does not include an express agreement regarding which party will pay the taxes due. Section 6 clarifies that this provision applies only when the property conveyed is not personal property, which is addressed in another provision of law. In addition, section 9 repeals obsolete language that required the treasurer to waive personal property tax obligations resulting from any conveyance, relocation, or change in tax status of the property that were not in the process of collection as of a certain date. Notice of property tax exemption: By specified dates each year, each county assessor and treasurer is required to mail certain mailings or notices to each residential real property address in the county. Section 7 specifies that if the county assessor or treasurer has reasonable certainty that such a notice will not be delivered to a residential real property address by the United States postal service, the county assessor and treasurer are not required to send the notice to that address. Declarations: Current law allows the treasurer to assess and tax any taxable property located in the treasurer's county if the property was omitted from the county assessor's tax list and warrant. Current law also requires public utilities in the state and the operators or owners of oil and gas leaseholds in the state to file with the property tax administrator or the county assessor, respectively, certain statements regarding their property. The statements are confidential and are currently not available to the treasurers. The treasurer, however, may need access to these statements if property owned by the public utility or the oil and gas leaseholds are omitted from the tax list and warrant. Sections 8 and 10 specify that such statements filed with the property tax administrator and the county assessor are available to the treasurer. Notice of school district mill levy: Current law requires each person whose name appears on the tax list and warrant to be informed in writing of specified information regarding the school district general fund mill levy. Section 12 modifies this provision to require the school district mill levy information be included on every tax notice. Estimated payment of tax: Current statute does not authorize a treasurer to accept an early payment of tax. Section 13 allows a treasurer to accept an estimated prepayment of property taxes due for the current tax year prior to the treasurer's receipt of the tax warrant. Section 13 also gives the treasurer broad authority to establish the conditions and terms under which estimated prepayments will be accepted. Tax liens on mobile homes: Current law specifies that a mobile home that is sold may be redeemed by the owner if certain criteria are satisfied. Section 15 modifies this provision to also allow the mobile home to be redeemed if it is stricken off to the county. When a mobile home has been purchased by the county at a tax sale and the assessor has determined that the actual value of the mobile home is less than $1,000, current law requires the treasurer to declare the mobile home condemned and to dispose of the mobile home at the end of the redemption period. Section 15 authorizes, rather than requires, the treasurer to condemn and dispose of the mobile home at the end of the redemption period. Personal property tax moving from county: Pursuant to current law, if the treasurer has reason to believe that personal property will be removed from the state, the treasurer may proceed with collections. Current law also states that if the county assessor reports that the property is moving out of the county, the treasurer is required to proceed with the collections process. Section 16 makes the 2 provisions consistent by referencing property moving out of the county in both instances and by allowing the treasurer to determine whether to proceed with collections in both instances. Abatement of taxes: Current law specifies that for abatements or refunds of taxes made pursuant to a petition for abatement or refund, interest accrues from the date a complete abatement petition is filed. Section 17 requires that beginning January 1, 2020, interest accrues from the date an abatement petition is filed or the date payment of taxes was received by the treasurer, whichever is later. Certification of taxes due: Upon request, a treasurer is required to certify the amount of taxes due as shown in the records of the treasurer's office or the records of the department of revenue. Current law specifies that a certificate signed by the treasurer showing payment of all taxes due is conclusive evidence that the taxes have been paid, without distinguishing between taxes owed to the treasurer and taxes owed to the department of revenue. Section 18 specifies that a certificate signed by the treasurer is conclusive evidence that only the taxes owed to the county have been paid. County held liens: Current law requires the treasurer, at least annually, to prepare and present to the board of county commissioners a list of all tax liens on all real property struck off to the county and all certificates of sale relating to the property if the certificates have been held by the county for 30 years or more without obtaining a deed or being otherwise disposed of. Section 19 changes this requirement to apply to certificates held by the county for 3 years to allow the board of county commissioners to take certain actions regarding the property at an earlier date. (Note: This summary applies to this bill as enacted.)