Sen. Chris Hansen

For the 2020-21 and 2021-22 state fiscal years only, the act allows the Auraria board to make payments on certain existing bonds for auxiliary facilities from other sources, including money contributed by constituent institutions and from money appropriated to the board by the general assembly.(Note: This summary applies to this bill as enacted.)

Sections 1 and 3 of the act restore, over time, certain business deductions to federal taxable income that were disallowed in Colorado by operation of a department of revenue rule and by House Bill 20-1420. The specific deductions are related to net operating losses, the application of the federal excess business loss rules, interest expenses, and qualified improvement property.The earned income tax credit is equal to a percentage of the federal earned income tax credit. Section 2 allows taxpayers filing with an individual taxpayer identification number to claim the earned income tax credit for income tax years commencing on or after January 1, 2020.(Note: This summary applies to this bill as enacted.)

Beginning in calendar year 2021 and each year thereafter, the act increases the amount of wages paid to an individual employee during a calendar year on which the employer of that employee is required to pay premiums to the unemployment compensation fund (fund). The act exempts payment for services to an election judge, up to the maximum amount permissible by federal law, for the purposes of calculating total unemployment compensation benefits. Current law requires the weekly total and partial unemployment benefit amounts to be reduced by the amount of an individual's wages that exceeds 25% of the weekly benefit amount. For the next 2 calendar years only, the act changes the deduction amount to the amount of an individual's wages that exceeds 50% of the weekly benefit amount. When determining whether an individual qualifies for unemployment insurance, the act directs the division of unemployment insurance (division) in the department of labor and employment (department) to consider whether the individual has separated from employment or has refused to accept new employment because: The employer requires the individual to work in an environment that is not in compliance with: Federal centers for disease control and prevention guidelines applicable to the employer's business and workplace at the time of the determination; state and federal laws, rules, and regulations concerning disease mitigation and workplace safety; or an executive order issued by the governor, or a public health order issued by the department of public health and environment or a local government, requiring the employer to close the business or modify the operation of the business; The individual is the primary caretaker of a child enrolled in a school that is closed due to a public health emergency or of a family member or household member who is quarantined due to an illness during a public health emergency; or The employee is immunocompromised and more susceptible to illness during a public health emergency. The act changes the time period that an interested party has to respond to a notice of claim received by the division concerning unemployment benefits from 12 calendar days to 7 calendar days. Current law authorizes the division to approve a work share plan submitted by an employer if the employee's normal weekly work hours have been reduced by at least 10% but not more than 40%. The act changes the amount that hours may be reduced to an amount consistent with rules adopted by the division and federal law. The act removes the cap on the amount of money that can be paid into and remain in the employment support fund. The act prohibits the division from assessing a solvency surcharge for the fund on employers for the calendar years 2021 and 2022. The act requires the state treasurer to transfer any unexpended federal funds received by the state from the federal "CARES Act" to the fund prior to the close of business on December 30, 2022. The act requires the office of future of work in the department to study unemployment assistance as part of a study on the modernization of worker benefits and protections and report its findings to the governor and the general assembly. (Note: This summary applies to this bill as enacted.)

The act only takes effect if the voters statewide approve the repeal of constitutional provisions related to property tax assessment rates set forth in Senate Concurrent Resolution 20-001. Beginning with the property tax year that commences on January 1, 2020, the act creates a moratorium on changing property tax assessment rates. The act also makes conforming amendments to reflect the repealed constitutional provisions. (Note: This summary applies to this bill as enacted.)

Section 1 of the act specifies that the act shall be known as the "Tax Fairness Act". Sections 2 and 3 of the act require taxpayers to add to federal taxable income: For income tax years ending on and after the enactment of the March 2020 "Coronavirus Aid, Relief, and Economic Security Act" (CARES Act), but before January 1, 2021, and for income tax years beginning on and after the enactment of the CARES Act, but before January 1, 2021, an amount equal to the difference between a taxpayer's net operating loss deduction as determined under federal law before the amendments made by section 2303 of the CARES Act and the taxpayer's net operating loss deduction as determined under federal law after the amendments made by section 2303 of the CARES Act; For income tax years ending on and after the enactment of the CARES Act, but before January 1, 2021, and for income tax years beginning on and after the enactment of the CARES Act, but before January 1, 2021, an amount equal to a taxpayer's excess business loss as determined under federal law without regard to the amendments made by section 2304 of the CARES Act, but with regard to the technical amendment made in that section of the CARES Act; For income tax years ending on and after the enactment of the CARES Act, but before January 1, 2021, and for income tax years beginning on and after the enactment of the CARES Act, but before January 1, 2021, an amount equal to the amount in excess of the limitation on business interest under federal law without regard to the amendments made by section 2306 of the CARES Act; and For income tax years commencing on or after January 1, 2021, but before January 1, 2023, an amount equal to the deduction for qualified business income for an individual taxpayer who files a single return and whose adjusted gross income is greater than $500,000, and for an individual taxpayer who files a joint return and whose adjusted gross income is greater than $1 million. This federal deduction may be claimed for income tax years commencing prior to January 1, 2026, except that the add-back is not required for a taxpayer who files a schedule F, profit or loss from farming, or successor form, as an attachment to a federal income tax return. Section 4 of the act specifies that for net operating losses incurred after December 31, 2017, the 80% limitation set forth in federal law applies without regard to the amendments made in section 2303 of the CARES Act. The earned income tax credit is equal to a percentage of the federal earned income tax credit. Section 5 of the act increases the percentage from 10% to 15% beginning in 2022. Section 5 also specifies that for income tax years commencing on or after January 1, 2021, taxpayers filing with an individual taxpayer identification number are eligible for the earned income tax credit. Section 6 of the act specifies that the state treasurer shall transfer $113 million on March 1, 2021, and $23 million on March 1, 2022, from the general fund to the state education fund created in section 17 (4) of article IX of the state constitution. Section 7 of the act makes an appropriation. (Note: This summary applies to this bill as enacted.)

The act clarifies language and requirements related to the child care license exemption for family child care homes and extends the licensure exemption from September 1, 2020, to September 1, 2026. (Note: This summary applies to this bill as enacted.)

Under current law, the public school capital construction assistance board establishes guidelines for considering applications for money from the public school capital construction assistance fund. The act adds to the considerations in the guidelines consulting with the local electric utility on energy efficiency, beneficial electrification, and renewable distributed generation opportunities. (Note: This summary applies to this bill as enacted.)

Preexisting law requires a home builder to offer to a buyer of a new home one of the following: A solar panel system or a solar thermal system; To prewire or preplumb the home for these systems; or A chase or conduit to wire or plumb the home for these systems in the future. The act requires the home builder to offer each of these options to the buyer and deletes these requirements for manufactured homes. The act also requires a home builder to offer the following options to a buyer of a newly constructed residence, which is defined to mean a traditional detached, single-family home: An electric vehicle charging system; upgrades of wiring to accommodate future installation of an electric vehicle charging system; or a 208- to 240-volt alternating current plug-in located in a place accessible to a motor vehicle parking area; Efficient electric heating and water heating options; and Pricing, energy efficiency, and utility bill information for each option available from the builder. The Colorado energy office must develop basic consumer education about leased solar installation and purchased solar installation in consultation with industries that offer these options to consumers. (Note: This summary applies to this bill as enacted.)

Property tax in Colorado is generally equal to the actual value of property multiplied by an assessment rate, and the resulting assessed value is multiplied by each applicable local government's mill levy. The assessment rate for residential real property is established by the general assembly in accordance with a provision of the state constitution that is commonly known as the "Gallagher Amendment" and is limited by section 20 of article X of the state constitution (TABOR). Under the Gallagher Amendment, there are 2 relevant classes of property for the purposes of determining the residential assessment rate: residential property and nonresidential property. The assessment rate for most nonresidential property is fixed in the state constitution at 29%. The residential assessment rate was initially set at 21%, but the rate has been adjusted prior to each 2-year reassessment cycle to keep the percentage of aggregate statewide assessed value attributable to residential property the same as it was in the year immediately preceding the new reassessment cycle. Currently, the residential assessment rate is 7.15%. The concurrent resolution repeals the Gallagher Amendment so that the general assembly will no longer be required to establish the residential assessment rate based on the formula expressed in the Gallagher Amendment. The resolution also repeals the reference to the residential rate of 21%, which last applied in 1986 prior to the first adjustment required by the Gallagher Amendment. Finally, the resolution repeals the 29% assessment rate that applies for all nonresidential property, excluding producing mines and lands or leaseholds producing oil or gas. (Note: This summary applies to this concurrent resolution as adopted.)

The state received $1.67 billion from the federal coronavirus relief fund created in the federal "Coronavirus Aid, Relief, and Economic Security Act of 2020" (CARES Act), and the governor allocated $70 million of these federal funds to the general fund for further allocation by the general assembly for any permissible uses under the CARES Act. The state controller set aside this money in a special account, known as the care subfund. The act codifies the care subfund (subfund) in the general fund and reiterates the requirement that the money in the subfund can only be used as permitted under the CARES Act. Any state department that receives an appropriation from the subfund is required to comply with any reporting and record-keeping requirements established by the state controller or the office of state planning and budgeting. Any money transferred from the care subfund to another cash fund is subject to the same reporting and record-keeping requirements. Any appropriations from the subfund are excluded from the base for purposes of calculating the state reserve for fiscal year 2020-21. The act requires any unexpended amounts before the close of business on December 30, 2020, to revert to the subfund and the state treasurer is directed to transfer such amount to the unemployment compensation fund, which is a permissible use of the federal funds. If as of that date, there is any unexpended money that originated from the care subfund in another cash fund, then the state treasurer shall transfer the unexpended amount from the cash fund to the subfund prior to the transfer to the unemployment compensation fund. (Note: This summary applies to this bill as enacted.)