Statutory Revision Committee. Section 1 of the bill repeals an income tax deduction for money earned on Colorado investment deposits issued by a qualified financial institution. The repeal is justified because the definition of "Colorado investment deposits" relies on the "Colorado Investment Deposit Act", which was repealed in 2004, so it is unlikely that there have been any new certificates of deposit issued since 2004. 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. Section 1 also 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. Section 2 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. Section 3 addresses some circular cross references within the statutory section. Section 4 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 the reengrossed version of this bill as introduced in the second house.) Read More
Sent to the Governor
Signed by the Speaker of the House
Signed by the President of the Senate
Senate Third Reading Passed - No Amendments
Senate Second Reading Passed - No Amendments
House Third Reading Passed - No Amendments
House Second Reading Passed - No Amendments
House Second Reading Laid Over Daily - No Amendments
|Bill Text Versions||Format|
|Signed Act (None)|
|Final Act (03/17/2020)|
|Fiscal Note SA1 (02/12/2020)|
|Fiscal Note FN1 (02/03/2020)|
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