2023 Colorado Revised Statutes › Title 39 - TAXATION (§§ 39-1-101 — 39-37-301) › SPECIFIC TAXES (§§ 39-20-101 — 39-37-301) › INCOME TAX (§§ 39-22-101 — 39-22-5508) › Article 22 - Income Tax (§§ 39-22-101 — 39-22-5508) › Part 20 - REFUND OF REVENUES IN EXCESS OF STATE FISCAL YEAR SPENDING LIMITATION (§§ 39-22-2001 — 39-22-2005) › Section 39-22-2003 - [Effective 8/7/2024] State sales tax refund - offset against state income tax - qualified individuals

(1)
(a)
For purposes of this section, "qualified individual" means:
(I)
A natural person who is domiciled in this state for the entire taxable year commencing January 1 and ending December 31 of such taxable year and who has state income tax liability under section
39-22-104
for the taxable year or who files a Colorado individual income tax return to claim a refund of Colorado income tax withheld from wages for that tax year;
(II)
A natural person who is domiciled in this state for the entire taxable year commencing January 1 and ending December 31 of such taxable year and who is at least eighteen years of age as of December 31 of the taxable year preceding such taxable year;
(III)
A natural person who died during the taxable year commencing January 1 and ending December 31, who was domiciled in this state from January 1 of the taxable year until the date of death, and whose estate or spouse has state income tax liability under section
39-22-104
for the taxable year or whose estate or spouse files a Colorado income tax return to claim a refund of Colorado income tax withheld from wages for that tax year; or
(IV)
A natural person who died during the taxable year commencing on January 1 and ending December 31, who was domiciled in this state from January 1 of the taxable year until the date of death, and who was at least eighteen years of age as of December 31 immediately prior to that taxable year.
(b)
"Qualified individual" does not include:
(I)
Any natural person who was convicted of a felony and who served a sentence of incarceration in a correctional facility operated by or under contract with the department of corrections or the federal bureau of prisons for a total of one hundred eighty days or more during the fiscal year ending during the taxable year, regardless of whether such person meets the qualifications set forth in subsection (1)(a) of this section.
(II)
[Repealed by 2024 Amendment.]
(III)
[Repealed by 2024 Amendment.]
(1.5)
For purposes of this section, "adjusted gross income" means:
(a)
For the taxable year commencing on January 1, 1999, and ending December 31, 1999, and for the taxable year commencing on January 1, 2000, and ending December 31, 2000, the combined total of:
(I)
Federal adjusted gross income; and
(II)
Social security benefits excluded from federal adjusted gross income for the tax year.
(b)
For the taxable year commencing on January 1, 2001, and ending December 31, 2001, and for each subsequent taxable year thereafter, the combined total of:
(I)
Federal adjusted gross income;
(II)
Social security benefits excluded from federal adjusted gross income for the tax year; and
(III)
Repealed.
(IV)
The amount of interest income from state and local bonds added to federal taxable income pursuant to section
39-22-104 (3)(b)
.
(1.7)
As used in this section, unless the context otherwise requires:
(a)
"Excess state revenues" has the same meaning as set forth in section 39-22-2002 (3).
(b)
"Identical refund threshold" has the same meaning as set forth in section 39-22-2002 (3.5).
(2)
With respect to the taxable year commencing on January 1, 1999, and ending December 31, 1999, and for each subsequent taxable year, there is allowed to each qualified individual a state sales tax refund in an amount specified in subsection (3) of this section to be claimed in the manner specified in subsection (4) of this section if there were excess state revenues for the fiscal year ending in that tax year.
(3)
The amount of the refund allowed under this section is as follows:
(a)
For a qualified individual filing a single return or for a qualified individual filing a joint return with an individual who is not qualified, the amount of the identical individual sales tax refund calculated pursuant to section
39-22-2002 (2) or (5)(a)
if the amount of such identical individual refund is less than or equal to the identical refund threshold;
(b)
For any two qualified individuals filing a joint return, double the amount of the identical individual sales tax refund calculated pursuant to section
39-22-2002 (2) or (5)(a)
if the amount of such identical individual refund is less than or equal to the identical refund threshold;
(c)
For a qualified individual filing a single return or for a qualified individual filing a joint return with an individual who is not qualified, if the amount of the identical individual sales tax refund calculated pursuant to section
39-22-2002 (2) or (5)(a)
exceeds the identical refund threshold:
(I)
If the qualified individual's adjusted gross income for the tax year is less than or equal to twenty-five thousand dollars, the refund is an amount equal to the amount of excess state revenues required to be refunded pursuant to subsection (1) of this section, multiplied by twenty-five percent, divided by the estimated number of said qualified individuals expected to claim the credit for that taxable year;
(II)
If the qualified individual's adjusted gross income for the tax year is greater than twenty-five thousand dollars but not more than fifty thousand dollars, the refund is an amount equal to the amount of excess state revenues required to be refunded pursuant to subsection (1) of this section, multiplied by twenty-three percent, divided by the estimated number of said qualified individuals expected to claim the credit for that taxable year;
(III)
If the qualified individual's adjusted gross income for the tax year is greater than fifty thousand dollars but not more than seventy-five thousand dollars, the refund is an amount equal to the amount of excess state revenues required to be refunded pursuant to subsection (1) of this section, multiplied by nineteen percent, divided by the estimated number of said qualified individuals expected to claim the credit for that taxable year;
(IV)
If the qualified individual's adjusted gross income for the tax year is greater than seventy-five thousand dollars but not more than one hundred thousand dollars, the refund is an amount equal to the amount of excess state revenues required to be refunded pursuant to subsection (1) of this section, multiplied by twelve percent, divided by the estimated number of said qualified individuals expected to claim the credit for that taxable year;
(V)
If the qualified individual's adjusted gross income for the tax year is greater than one hundred thousand dollars but not more than one hundred twenty-five thousand dollars, the refund is an amount equal to the amount of excess state revenues required to be refunded pursuant to subsection (1) of this section, multiplied by six percent, divided by the estimated number of said qualified individuals expected to claim the credit for that taxable year;
(VI)
If the qualified individual's adjusted gross income for the tax year is greater than one hundred twenty-five thousand dollars, the refund is an amount equal to the amount of excess state revenues required to be refunded pursuant to subsection (1) of this section, multiplied by fifteen percent, divided by the estimated number of said qualified individuals expected to claim the credit for that taxable year;
(d)
For two qualified individuals filing a joint return, if the amount of the identical individual sales tax refund calculated pursuant to section
39-22-2002 (2) or (5)(a)
exceeds the identical refund threshold, the amount of the refund is based upon the aggregate adjusted gross income of the qualified individuals and is an amount equal to double the amount of the refund allowed under paragraph (c) of this subsection (3) for such aggregate income amount.
(4)
(a)
The amount of the refund allowed under subsection (2) of this section for the taxable year commencing January 1, 2000, and ending December 31, 2000, and for each subsequent taxable year, shall be the same as provided in subsection (3) of this section; except that, for each such taxable year, the executive director shall adjust:
(I)
The amount of adjusted gross income, to the nearest thousand dollars, for each income classification such that the percentage of all qualified individuals who are expected to claim a refund under each income classification for such taxable year remains the same as the percentage of all qualified individuals who claimed a refund under such income classification for the 1999 tax year; and
(II)
The amount of the refund allowed for each income classification such that the percentage of excess state revenues to be refunded to all qualified individuals for such income classification for such taxable year remains the same as the percentage of excess state revenues refunded to all qualified individuals for such income classification for the 1999 tax year.
(b)
In calculating income classifications or the amount of refund allowed for a given income classification in accordance with the provisions of this section, the executive director shall use the most recent estimate of general fund revenues for the applicable taxable year prepared by the staff of the legislative council of the general assembly.
(5)
(a)
(I)
A qualified individual as defined in subsection (1)(a)(I) or (1)(a)(III) of this section may claim a refund allowed by this section by filing an income tax return with the department of revenue no later than October 15 of the calendar year following the taxable year for which the refund is being claimed, in compliance with the provisions of this article 22.
(II)
[Repealed by 2024 Amendment.]
(III)
The department of revenue shall not allow said refund claimed on any income tax return not filed in compliance with the provisions of this article. In no event shall the refund claimed by a qualified individual as defined in subparagraph (I) or (III) of paragraph (a) of subsection (1) of this section on any income tax return be:
(A)
Disallowed if said return is filed on or before October 15 of the calendar year following the tax year for which the refund is being claimed; and
(B)
Allowed if said return is filed after October 15 of the calendar year following the tax year for which the refund is being claimed.
(b)
A qualified individual as defined in subsection (1)(a)(II) or (1)(a)(IV) of this section may claim a refund allowed by this section by filing an income tax return for the taxable year for which the refund is allowed with the department of revenue no later than October 15 of the calendar year following the tax year for which the refund is being claimed.
(c)
(I)
Notwithstanding any provision of subsection (5)(b) of this section to the contrary, a qualified individual as defined in subsection (1)(a)(II) or (1)(a)(IV) of this section who claims a property taxor heat or fuel assistance grant pursuant to section
39-31-101
may claim a refund authorized by this section on the assistance grant application form described in section
39-31-102 (2)
. Claiming a refund on such assistance grant application form is in lieu of claiming the refund on an income tax return pursuant to subsection (5)(b) of this section. Any refund claimed pursuant to this subsection (5)(c) must be claimed on or before October 15 of the calendar year following the tax year for which the refund is being claimed.
(II)
The department of revenue shall not allow a refund authorized by this section that is claimed on an assistance grant application form if:
(A)
The assistance grant application form is filed after October 15 of the calendar year following the tax year for which the refund is being claimed; or
(B)
The qualified individual has claimed the refund authorized by this section on an income tax form filed in accordance with subsection (5)(b) of this section for the tax year for which the refund is allowed.
(6)
Except as otherwise provided in this subsection (6), if the refund allowed under this section exceeds the income taxes otherwise due on the claimant's income, the amount of the refund shall be refunded to the claimant. The claimant may elect to carry forward the amount of the refund not used as an offset against income taxes or as an offset against subsequent years' income tax liability.
(7)
In addition to any other penalties allowed by law, any person who claims but is not eligible to claim the refund allowed pursuant to this section shall be subject to the criminal penalties imposed pursuant to section
39-21-118
, as applicable.
(8)
[Repealed by 2024 Amendment.]
(9)
[Repealed by 2024 Amendment.]
(9.5)
The provisions of section 39-21-108 (3) apply to the refund allowed pursuant to this part 20 in the same manner as an overpayment of tax.
(10)
The department of corrections shall provide in a timely manner the information requested by the department of revenue necessary to identify the persons specified in subsection (1)(b) of this section. The information must be provided in the form requested by the department of revenue. The department of revenue shall maintain the confidentiality of any social security number received pursuant to this subsection (10).
Amended by 2024 Ch. 475,§ 7, eff. 8/7/2024.
Amended by 2024 Ch. 170,§ 5, eff. 5/14/2024.
L. 99: Entire part added, p. 1310, § 1, effective August 4. L. 2001: (1)(a)(I), (1)(a)(III), (3)(c), (3)(d), (4)(a)(I), (5)(a)(II), and (5)(b) amended and (1.5) added, pp. 73, 71, §§ 2, 1, effective August 8. L. 2002: (9) amended, p. 1557, § 351, effective October 1. L. 2003: (9) amended, p. 2002, § 68, effective May 22. L. 2004: (9) amended, p. 171, § 1, effective August 4. L. 2013: (4)(b) amended, (SB 13-036), ch. 2, p. 6, § 2, effective January 31. L. 2016: (1)(b)(II) amended and (1)(b)(III) repealed, (SB 16-189), ch. 210, p. 795, § 112, effective June 6.
2024 Ch. 475, was passed without a safety clause. See Colo. Const. art. V, § 1(3).
This section is set out more than once due to postponed, multiple, or conflicting amendments.
For the legislative declaration contained in the 2002 act amending subsection (9), see section 1 of chapter 318, Session Laws of Colorado 2002.