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Repealed 7/1/2010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.
39-22-544. Credit against tax – qualifying seniors – creation – legislative declaration – definitions.
(1) (a) The general assembly hereby finds and declares that:
(I) Colorado’s affordable housing shortage is hurting seniors, making it more difficult for many seniors to afford housing;
(II) The senior property tax exemption was adopted by Colorado voters in 2000 in order to help seniors afford to stay in their homes;
(III) Many seniors are ineligible for the senior property tax exemption because they have owned their home for fewer than ten years or because they rent; and
(IV) Property tax rebates or tax-equivalent rebates for renters available under section 39-31-102 only assist seniors with incomes below very low thresholds.
(b) (I) Therefore, in order to help more seniors afford the high cost of housing in Colorado, the general assembly hereby intends to establish a refundable income tax credit for income-qualified seniors who do not qualify for the senior property tax exemption to help them afford the high cost of housing.
(II) In accordance with section 39-21-304 (1), the purpose of the tax expenditure created in this section is to provide tax relief for income-qualified seniors.
(c) The general assembly and the state auditor shall measure the effectiveness of the exemption in achieving the purpose specified in subsection (1)(b)(II) of this section based on the number of taxpayers who have claimed the exemption.
(2) As used in this section, unless the context otherwise requires:
(a) “Credit” means a credit against income tax that is created in this section.
(b) “Qualifying senior” means a resident individual who:
(I) Is sixty-five years of age or older at the end of 2022;
(II) Has a federal adjusted gross income that is less than or equal to seventy-five thousand dollars for the income tax year commencing on January 1, 2022; and
(III) Has not claimed a property tax exemption under section 39-3-203 for the property tax year commencing on January 1, 2022.
(3) For the income tax year commencing on January 1, 2022, a qualifying senior is allowed a credit against the tax imposed by this article 22 in an amount set forth in subsection (4) of this section.
(4) (a) The amount of the credit is one thousand dollars for a qualifying senior with federal adjusted gross income that is twenty-five thousand dollars or less. for every five hundred dollars of adjusted gross income above twenty-five thousand dollars, the amount of the credit is reduced by ten dollars.
(b) The credit is the same whether it is claimed by one taxpayer filing a single return or two taxpayers filing a joint return. in the case of two taxpayers who share the same primary residence and who may legally file a joint return but actually file separate returns, both taxpayers may claim the credit, but the maximum credit for each is five hundred dollars and, for every five hundred dollars of adjusted gross income above twenty-five thousand dollars, the amount of the credit is reduced by five dollars.
(c) Notwithstanding subsections (4)(a) and (4)(b) of this section, a taxpayer who also qualifies for a grant under article 31 of this title 3 9 during calendar year 2022 is eligible to receive the full credit without an income-based reduction that otherwise applies for the taxpayer under subsection (4)(a) or (4)(b) of this section.
(5) (a) Any amount of the credit that exceeds the qualifying senior’s income taxes due is refunded to the qualifying senior.
(b) To the extent permitted by federal law, the credit is not income or resources for the purpose of determining eligibility for the payment of public assistance benefits and medical assistance benefits authorized under state law or for a payment made under any other publicly funded programs.
(6) The department of revenue may use the reports received from the property tax administrator in accordance with section 39-3-207 (7) for purposes of confirming that a taxpayer meets the eligibility requirement set forth in subsection (2)(b)(III) of this section.