Current law requires a legislative declaration stating the intended purpose of a new tax expenditure or the intended purpose for extending an expiring tax expenditure. The act expands that law by: Requiring a statutory legislative declaration, not nonstatutory; Requiring any bill that creates a new tax expenditure to include a repeal of the expenditure after a specified period of tax years and any bill that extends an expiring tax expenditure to extend the expenditure for a specified period of tax years; and Requiring the statement of the intended purpose to be a part of a tax preference performance statement, which includes: The classification of the type of the tax expenditure; and Detailed information regarding the legislative purpose of the tax expenditure, which, at minimum, includes clear, relevant, and ascertainable metrics and data requirements that allow the tax expenditure to be measured for effectiveness in achieving the intended purpose.(Note: This summary applies to this bill as enacted.)
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Colorado taxpayers can claim a net operating loss deduction on their Colorado tax return. Unless statute otherwise provides, the state deduction is currently allowed in the same manner that a similar deduction is allowed under the internal revenue code to determine federal taxable income. Under current law, corporate taxpayers in Colorado are allowed to carry forward their net operating loss deduction for the same number of years as allowed for a federal net operating loss. For many years, taxpayers were limited to a 20-year carryforward period for both state and federal taxes. The federal "Tax Cuts and Jobs Act" (TCJA), enacted in 2017, allowed federal taxpayers unlimited years to carry forward net operating losses. Because Colorado's statute specifies that net operating losses may be carried forward "for the same number of years as allowed for a federal net operating loss", the TCJA's change resulted in the same change to Colorado's law. The act partially decouples the corporate net operating loss deduction from the federal net operating loss deduction by returning the state's carryforward period to 20 years for net operating losses generated in income tax years commencing on or after January 1, 2021. The act also repeals a state provision that was effective only for financial institutions, so that, for purposes of the period of years a loss can be carried forward, financial institutions will now be treated the same as any other taxpayer. (Note: This summary applies to this bill as enacted.)
The Legislative Oversight Committee Concerning the Treatment of Persons with Mental Health Disorders in the Criminal and Juvenile Justice Systems. The bill implements various recommendations of the legislative oversight committee concerning the treatment of persons with mental health disorders in the criminal and juvenile justice systems regarding juveniles who have committed sex offenses, including: Specifying that if a juvenile who is moving to Colorado would be otherwise required to register on Colorado's sex offender registry (registry) but the juvenile's duty to register in another state has been terminated by a court order, then the juvenile is not required to register or petition the court for removal from the registry; Expanding judicial discretion at the time of sentencing to exempt from registration or require juveniles to register for all first offense registerable juvenile sex crimes if a sex offender management board evaluator recommends exemption and the juvenile is otherwise statutorily eligible; Adding language to adult and juvenile provisions that currently reference only crimes defined as "unlawful sexual behavior" to also include convictions and adjudications for nonsexual crimes where there has been, pursuant to statute, a judicial finding of an underlying factual basis involving unlawful sexual behavior; Creating a process for the court to reconsider its ruling on whether to require registration if new information is discovered after the court made its initial ruling; Adding a requirement for the court to issue a ruling or set a mandatory hearing no later than 14 days before the end of each juvenile's sentence concerning a juvenile's ongoing duty to register; Changing the current law that allows the Colorado Bureau of Investigation (CBI) to inform the requesting party if a person is on the registry so that the CBI may release information about a juvenile only under certain restrictions; Requiring the CBI to collect data on the number of times information is requested and released concerning juveniles on the registry; Creating a new unclassified misdemeanor for members of the public who submit a false statement to the CBI for purposes of obtaining juvenile registry information or who use such information in a prohibited manner; Updating current law regarding the posting of information on the registry to the internet to specifically exclude juveniles; Clarifying that a local law enforcement agency may not release or post on its website information regarding juveniles on the registry; Changing current law that requires lifetime registration for an adult who has more than one adjudication as a juvenile so that juvenile adjudications alone may not trigger mandatory lifetime registration; and Updating language in the Colorado crime victim rights act to clarify victim rights when a petition or motion is made to terminate sex offender registration.(Note: This summary applies to this bill as introduced.)
Current law provides that the occasional sales of alcohol by way of public auctions do not require a liquor license or compliance with the reporting requirements for licensed liquor distributors or retailers, so long as: The previous owner of the alcohol beverages has not claimed the beverages or furnished instruction for their disposition; The seller obtained the beverages as part of the foreclosure of a lien; The seller salvaged the beverages; or The seller operates a charitable organization and received the beverages as donations. However, the excise tax on alcohol beverages is nonetheless applicable to those occasional sales even though the licensing and compliance requirements do not apply. Because it is not clear that the excise tax on alcohol beverages still applies to those occasional sales, it was mistakenly identified as a tax expenditure in the department of revenue's tax expenditure report and thus mistakenly evaluated by the office of the state auditor as part of that office's evaluation of the state's tax expenditures. The bill clarifies the exemption. (Note: This summary applies to this bill as introduced.)
The bill repeals the exemption for the sale or distribution of sacramental wines used for religious purposes from the excise tax on alcohol beverages. However, the bill maintains the current law that exempts religious organizations that distribute sacramental wines for religious purposes from needing to maintain a liquor license. (Note: This summary applies to this bill as introduced.)
Tax Expenditure Evaluation Interim Study Committee. Under current law, the sales tax exemption for energy use exempts the sale and purchase of electricity, gas, fuel oil, steam, coal, coke, or nuclear fuel used in processing, manufacturing, mining, refining, irrigation, construction, telegraph, telephone, and radio communication, street and railroad transportation services, and all industrial uses, and newsprint and printer's ink used by newspaper publisher and commercial printers from state sales tax. The bill modifies this sales exemption to only apply when the energy is used by a metered machine.(Note: This summary applies to this bill as introduced.)
Tax Expenditure Evaluation Interim Study Committee. The bill creates the legislative oversight committee concerning tax policy (committee), and the associated task force (task force). The committee is required to consider the policy considerations contained in the tax expenditure evaluations prepared by the state auditor and is responsible for the oversight of the task force. The committee may recommend legislative changes that are treated as bills recommended by an interim legislative committee. The task force is required to study tax policy and develop and propose for committee consideration any modifications to the current system of state and local taxation. The task force is also authorized, upon request by a committee member, to provide evidence-based feedback on the potential benefits or consequences of a legislative or other policy proposal not directly affiliated with or generated by the task force, including any bill or resolution introduced by the general assembly that affects tax policy. (Note: This summary applies to this bill as introduced.)
Under current law, the income tax credit for corporate crop and livestock contributions allows agricultural C corporations to claim an income tax credit of 25% of the value of the charitable crop or livestock contributions they make in a tax year, up to a maximum of $1,000. The bill eliminates the tax credit. (Note: This summary applies to this bill as introduced.)
Under current law, manufacturers and distributors of alcohol beverages are allowed to receive a refund or credit for the amount of excise tax on alcohol beverages that they previously paid for alcohol beverages that later became unsalable due to damage or destruction. The bill repeals this refund or credit as of January 1, 2021.(Note: This summary applies to this bill as introduced.)