2023 Colorado Revised Statutes › Title 39 - TAXATION (§§ 39-1-101 — 39-37-301) › SPECIFIC TAXES (§§ 39-20-101 — 39-37-301) › GENERAL AND ADMINISTRATIVE (§§ 39-20-101 — 39-21-405) › Article 21 - Procedure and Administration (§§ 39-21-101 — 39-21-405) › Part 1 - GENERAL PROVISIONS (§§ 39-21-101 — 39-21-122) › Section 39-21-110 - [See Note] Interest on overpayments - repeal (§ 39-21-110) › 1

(1)
Interest shall be allowed and paid upon any overpayment in respect to any tax or any charge on oil and gas production imposed pursuant to articles
22
to
29
of this title 39, article
60
of title
34
, or article
3
of title
42
at the rate imposed under section
39-21-110.5
. Such interest shall be allowed and paid as follows:
(a)
In the case of a credit, from the date of the overpayment to the due date of the amount against which the credit is taken;
(b)
Except as provided in subsection (1)(c) of this section, in the case of a refund, from the date of the overpayment to a date, to be determined by the executive director of the department of revenue or their delegate, preceding the date of the refund by not more than thirty days, whether or not such refund is accepted by the taxpayer after tender of such refund to the taxpayer. The acceptance of such refund shall be without prejudice to any right of the taxpayer to claim any additional overpayment and interest thereon; or
(c)
(I)
In the case of a refund claim made by a purchaser for sales or use tax paid to a vendor under section
39-26-703 (2)
on or after July 1, 2022, but before July 1, 2026, from the date that the claim for refund was filed to a date, to be determined by the executive director of the department of revenue or their delegate, preceding the date of the refund by not more than thirty days, whether or not such refund is accepted by the taxpayer after tender of such refund to the taxpayer, but only if the date of the refund is more than one hundred eighty days from the date the claim for refund was filed. The acceptance of such refund shall be without prejudice to any right of the purchaser to claim any additional overpayment and interest thereon.
(II)
This subsection (1)(c) is repealed, effective July 1, 2030.
(1.5)
Notwithstanding any other provision of this section to the contrary, a payment not made incident to a bona fide and orderly discharge of an actual liability or a liability reasonably assumed to be imposed by law is not an overpayment for the purposes of this section only, and interest is not payable on the payment. For purposes of this subsection (1.5), the following burdens of proof shall apply:
(a)
If a taxpayer's total payments are less than or equal to twice the amount of the actual tax liability, then the department shall bear the burden of proving, by a preponderance of the evidence, that such payments were not made incident to a bona fide and orderly discharge of an actual liability or a liability reasonably assumed to be imposed by law; and
(b)
If a taxpayer's total payments are more than twice the amount of the actual tax liability, then the taxpayer shall bear the burden of proving, by a preponderance of the evidence, that such payments were made incident to a bona fide and orderly discharge of an actual liability or a liability reasonably assumed to be imposed by law.
(2)
Any portion of any tax or of a charge on oil and gas production imposed pursuant to articles
22
to
29
of this title, article
60
of title
34
, or article
3
of title
42
, C.R.S., or any interest, assessable penalty, additional amount, or addition to a tax or charge which has been erroneously refunded shall bear interest at the rate imposed under section
39-21-110.5
from the date of the payment of the refund.
(3)
If any overpayment of any tax or of a charge on oil and gas production imposed pursuant to articles
22
to
29
of this title, article
60
of title
34
, or article
3
of title
42
, C.R.S., is refunded within ninety days after the last date prescribed for filing the return of such tax or charge, determined without regard to any extension of time for filing the return, no interest shall be allowed under subsection (1) of this section on such overpayment.
(4)
If the amount of any income tax is reduced by reason of a carry-back of a net operating loss, such reduction in tax shall not affect the computation of interest under this section for the period ending with the last day of the taxable year in which the net operating loss arises. If any overpayment of income tax results from a carry-back of a net operating loss, such overpayment shall be deemed not to have been made prior to the close of the taxable year in which such net operating loss arises.
Amended by 2022 Ch. 110, § 1, eff. 4/21/2022.
L. 65: p. 1139, § 2. C.R.S. 1963: § 138-9-9. L. 73: p. 1418, § 104. L. 77: IP(1), (2), and (3) amended, pp. 1768, 1854, §§ 7, 9, effective 1/1/1978. L. 79: IP(1), (2), and (3) amended, p. 1500, § 25, effective 1/1/1980. L. 81: IP(1) and (2) amended, p. 1864, § 3, effective June 8. L. 86: (2) amended, p. 1111, § 8, effective July 1. L. 89: (2) and (3) amended, p. 1596, § 10, effective 7/1/1993. L. 90: IP(1), (2), and (3) amended, p. 1724, § 11, effective May 1; IP(1), (2), and (3) amended, p. 1725, § 12, effective 7/1/1993. L. 2009: (1.5) added, (HB 09 -1219), ch. 71, p. 241, § 1, effective March 25.
Amendments to the introductory portion to subsection (1) and subsections (2) and (3) by Senate Bill 77-144 and House Bill 77-1076 were harmonized.
This section is set out more than once due to postponed, multiple, or conflicting amendments.