Senate Bill 25-013 Introduced

A Bill for an Act

• Page 1, Line 101Concerning the extension of an income tax credit to help

• Page 1, Line 102income-qualified seniors afford housing.

Bill Summary

(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov/.)

Legislative Oversight Committee Concerning Tax Policy. Section 2 of the bill extends a refundable income tax credit (credit) that is available for the income tax years commencing on January 1, 2022, and January 1, 2024, so that the credit is also available for the income tax years commencing on January 1, 2025, and January 1, 2026.

For each income tax year, the credit is for a qualifying senior, which means a resident individual who:

• Is 65 years of age or older at the end of the income tax year;
• Has federal adjusted gross income (AGI) that is less than or equal to $75,000 if filing a single return, or less than or equal to $125,000 if filing a joint return; and
• Has not claimed the senior property tax exemption for the property tax year that coincides with the income tax year.
• $800 for a qualifying senior filing a single return with federal AGI that is $25,000 or less. For every $500 of federal AGI above $25,000, the amount of the credit is reduced by $8.
• $800 for 2 taxpayers filing a joint return with federal AGI that is $25,000 or less. For every $500 of federal AGI above $25,000, the amount of the credit is reduced by $4.
• $400 for each taxpayer, in the case of 2 taxpayers who share the same primary residence, and may legally file a joint return but actually file separate returns and both claim the credit. For every $500 of federal AGI above $25,000, the amount of the credit is reduced by $4.

The amount of the credit for both the 2025 and 2026 income tax years is:

Notwithstanding the income-based reductions in the allowable credit amount, a taxpayer who also qualifies for a property tax and rent assistance grant or heat assistance grant during the calendar year 2025 or 2026 is eligible to receive the full amount of the credit.

Section 1 requires the property tax administrator to provide reports from counties related to taxpayers who are eligible for and actually claim the homestead property tax exemption.

• Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:

• Page 2, Line 2SECTION 1.  In Colorado Revised Statutes, 39-3-207, amend (8) as follows:

• Page 2, Line 339-3-207.  Reporting of exemptions - reimbursement to local

• Page 2, Line 4governmental entities - repeal. (8) (a)  On or before December 1, 2024,

• Page 2, Line 5the administrator shall provide a report to the department of revenue with

• Page 2, Line 6the names and social security numbers of all applicants eligible for the

• Page 2, Line 7exemption for the property tax year commencing on January 1, 2024,

• Page 3, Line 1based on the administrator's examination under subsection (2) of this

• Page 3, Line 2section of the reports received in accordance with subsection (1) of this

• Page 3, Line 3section. On or before December 1, 2025, and on or before

• Page 3, Line 4December 1, 2026, the administrator shall provide the same

• Page 3, Line 5report to the department of revenue containing the names and

• Page 3, Line 6social security numbers of all applicants eligible for the

• Page 3, Line 7exemption for the property tax years commencing on January 1, 2025, and January 1, 2026, respectively.

• Page 3, Line 8(b)  On or before April 1, 2025, the administrator shall provide a

• Page 3, Line 9report to the department of revenue with the names and social security

• Page 3, Line 10numbers of all taxpayers entitled to the exemption for the property tax

• Page 3, Line 11year commencing on January 1, 2024, based on the administrator's

• Page 3, Line 12examination under subsection (3.5) of this section of the reports received

• Page 3, Line 13in accordance with subsection (3) of this section. On or before April 1,

• Page 3, Line 142026, and on or before April 1, 2027, the administrator shall

• Page 3, Line 15provide the same report to the department of revenue

• Page 3, Line 16containing the names and social security numbers of all

• Page 3, Line 17taxpayers entitled to the exemption for the property tax years

• Page 3, Line 18commencing on January 1, 2025, and January 1, 2026, respectively.

• Page 3, Line 19(c)  This subsection (8) is repealed, effective July 1, 2025 July 1, 2027.

• Page 3, Line 20SECTION 2.  In Colorado Revised Statutes, 39-22-544, amend (4.5) introductory portion, (4.5)(d), and (6); and add (3)(c) as follows:

• Page 3, Line 2139-22-544.  Credit against tax - qualifying seniors - creation -

• Page 3, Line 22legislative declaration - definitions. (3) (c) (I)  For the income tax

• Page 3, Line 23years commencing on January 1, 2025, and January 1, 2026, a

• Page 4, Line 1qualifying senior is allowed a credit against the tax imposed by

• Page 4, Line 2this article 22 in an amount set forth in subsection (4.5) of this section.

• Page 4, Line 3(II)  As used in this subsection (3)(c), "qualifying senior" means a resident individual who:

• Page 4, Line 4(A)  Is sixty-five years of age or older at the end of the applicable income tax year;

• Page 4, Line 5(B)  Has, for the applicable income tax year, a federal

• Page 4, Line 6adjusted gross income less than or equal to seventy-five

• Page 4, Line 7thousand dollars for an individual filing a single return, or has

• Page 4, Line 8a federal adjusted gross income less than or equal to one

• Page 4, Line 9hundred twenty-five thousand dollars for an individual filing a joint return; and

• Page 4, Line 10(C)  Has not claimed a property tax exemption under

• Page 4, Line 11section 39-3-203 for the property tax year that coincides with

• Page 4, Line 12the applicable income tax year on or before August 15 of the applicable income tax year.

• Page 4, Line 13(4.5)  For the income tax year years commencing on January 1, 2024, January 1, 2025, and January 1, 2026:

• Page 4, Line 14(d)  Notwithstanding subsections (4.5)(a), (4.5)(b), and (4.5)(c) of

• Page 4, Line 15this section, a taxpayer who also qualifies for a grant under article 31 of

• Page 4, Line 16this title 39 during calendar year 2024, 2025, or 2026 is eligible to

• Page 4, Line 17receive the full credit without an income-based reduction that otherwise

• Page 4, Line 18applies for the taxpayer pursuant to subsections (4.5)(a), (4.5)(b), and (4.5)(c) of this section.

• Page 4, Line 19(6)  The department of revenue may use the reports received from

• Page 4, Line 20the property tax administrator in accordance with section 39-3-207 (8) for

• Page 5, Line 1purposes of confirming that a taxpayer meets the eligibility requirement

• Page 5, Line 2set forth in subsection subsections (3)(b)(II)(C) and (3)(c)(II)(C) of this section.

• Page 5, Line 3SECTION 3.  Safety clause. The general assembly finds,

• Page 5, Line 4determines, and declares that this act is necessary for the immediate

• Page 5, Line 5preservation of the public peace, health, or safety or for appropriations for

• Page 5, Line 6the support and maintenance of the departments of the state and state institutions.