June 15, 2019

HB 14-1001: Establishing Income Tax Credit for Property Owners Owing Property Tax for Destroyed Property

On January 8, 2014, Rep. Jonathan Singer and Sen. Jeanne Nicholson introduced HB 14-1001, Concerning the Creation of an Income Tax Credit for a Taxpayer that Owes Property Tax on Property that Has Been Destroyed by a Natural Cause. This summary is published here courtesy of the Colorado Bar Association’s e-Legislative Report.

Beginning in the 2013 income tax year, the bill establishes an income tax credit for a taxpayer that owns real or business personal property that was destroyed by a natural cause as determined by the county assessor of the county in which the property is located. The amount of the credit is an amount equal to the taxpayer’s property tax liability for the destroyed property in the property tax year in which the natural cause occurred. A taxpayer is allowed to claim the credit only for the income tax year during which the property was destroyed.

The bill requires the executive director of the department of revenue (department) to create a certification form to be used by a county assessor to certify to the department, at the request of a taxpayer, that the taxpayer’s property was destroyed by a natural cause and that the taxpayer is entitled to an income tax credit. The bill specifies the information that shall be included on the certification form for real or business personal property that was destroyed by a natural cause. The department is required to make the certification form available to taxpayers and county assessors on the department’s web site and by any other means deemed necessary by the department.

Before claiming an income tax credit, the bill requires a taxpayer to request that the county assessor in the county in which the destroyed property is located complete and sign a certification form for the destroyed property that is the basis of the income tax credit. The county assessor is required to complete and sign the certification form upon such request and the taxpayer is required to submit the completed and signed certification form to the department with the taxpayer’s income tax return.

The amount of the credit allowed that exceeds the taxpayer’s income taxes due is refunded to the taxpayer. The bill is assigned to the Finance Committee.

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