In this Capitol Report:
Signatures Secured for 2021 Ballot Initiative to Reduce State Property Tax Assessment Rate
Ballot Initiative #27 known as the “Property Tax Assessment Rate Reduction” has been determined by the Secretary of State to qualify for the 2021 statewide ballot. The goal of Initiative 27 is “to reduce the residential property tax assessment rate from 7.15% to 6.5% and the non-residential property tax assessment rate from 29% to 26.4% with authorization to retain and spend 25 million per year for 5 years credited to homestead exemptions.”
The initiative also allows includes preemptive language allowing for a backfill of funds to local governments to off-set lost revenue during fiscal years 2022-2027 caused by the reduction in the property tax assessment. The language reads: “for the purposes of off-setting lost revenue resulting from a reduction in property tax and to fund state reimbursements to local government entities for the application of the homestead exemption… the State shall be authorized to retain and spend up to 25 million per year in revenue for warrants otherwise authorized under this section.
A copy of the initiative can be found here.
Proponents of the initiative submitted 192,562 petition signatures, and needed 124,632 valid signatures to qualify for the ballot. Proponents include Michael Fields, Executive Director, Colorado Rising Action and Suzanne Taheri, Maven Law Group and former Deputy Secretary of State.
E-Trip Could See a Comeback – We Need Your Help
While the controversial Employee Traffic Reduction Program was recently defeated after major business backlash, lawmakers have expressed that they are committed to advancing the idea in the future. The proposal could see new life in future regulations or legislation, and we need your feedback to help ensure the voice of business continues to be heard.
Here are two things you can do to help us right now:
- Fill out this quick, 5 minute survey to help us understand what your company’s current policies are surrounding remote work, alternative transportation, and financial incentives. Click here to take the survey.
- We also need to know how employees feel about this proposal and its potential to impact how they commute to work. You can help by sharing our employee-focused survey with employees in your company. That survey can be found here.
If you have any questions, please contact Katie Wolf at [email protected].
The CO Department of Revenue Is Seeking Feedback Regarding New and Amended Rules
The CO Department of Revenue, Division of Taxation, is seeking feedback regarding the following new and amended rules:
- Special Rule 9A. Apportionment of Income for Electricity Producers – The purpose of this new rule is to prescribe the inclusion of certain receipts of electricity producers from hedging transactions in the receipts factor.
- Rule 39-22-303.6–1. Apportionment and Allocation Definitions The purpose of this amended rule is to add language to the rule that explains that hedging transactions are excluded from receipts except as provided in Special Rule 9A.
Rule 39-22-303.6–7. Sales Other Than Sales of Tangible Personal Property in Colorado The purpose of this amended rule is to add language to the rule that explains that hedging transactions are excluded from receipts except as provided in Special Rule 9A.
The Department is also considering a repeal of some apportionment rules which applied to tax years prior to January 1, 2009. Below are links for the rules the Department is proposing to repeal and the rules it plans to retain:
- Regulation IV. Colorado Multi-state Compact Tax Regulation – Applicability
- Regulation IV.1.(a). Business and Nonbusiness Income Defined
- Regulation IV.1.(b)
- Regulation IV.1.(c). Business and Nonbusiness Income: Application of Definitions
- Regulation IV.1.(d). Proration of Deductions
- Regulation IV.2.(a). Definitions
- Regulation IV.2.(b)(1). Application of Article IV: Apportionment
- Regulation IV.2.(b)(2). Application of Article IV: Combined Report
- Regulation IV.2.(b)(3). Application of Article IV: Allocation
- Regulation IV.2.(c). Consistency and Uniformity in Reporting
- Regulation IV.3.(a). Taxable in Another State
- Regulation IV.3.(b). Taxable in Another State: When a Corporation is “Subject to” a Tax under Article IV.3.(1)
- Regulation IV.3.(c). Taxable in Another State: When a State Has Jurisdiction to Subject a Taxpayer to a Net Income Tax
- Regulation IV.9. Apportionment Formula
- Regulation IV.15.(a). Sales Factor
- Regulation IV.15.(b). Sales Factor: Denominator
- Regulation IV.15.(c). Sales Factor: Numerator
- Regulation IV.16.(a). Sales Factor: Sales of Tangible Personal Property in this State
- Regulation IV.16.(b). Sales Factor: Sales of Tangible Personal Property to United States Government in this State
- Regulation IV.17. Sales Factor: Sales Other than Sales of Tangible Personal Property in this State
- Regulation IV.18.(c). Special Rules: Sales Factor
The DOR will NOT be holding a stakeholder meeting to discuss the proposed rule changes prior to the formal rulemaking process unless necessary. Feedback can be provided to: [email protected] and the deadline for comments is September 17, 2021. After reviewing the comments received, DOR will determine whether the draft rules should move forward and whether additional changes are necessary.