(1) On or before January 1, 2013, and January 1 of every odd-numbered year thereafter, the department shall prepare a tax profile and expenditure report for the state that includes the information set forth in subsection (2) of this section.
(2) (a) A tax profile and expenditure report must include the following information for each tax expenditure for any tax levied and collected by the state that is administered by the department:
(I) A citation of the statutory or other legal authority for the tax expenditure;
(II) The year that the tax expenditure was enacted;
(III) A description of the tax expenditure;
(IV) An estimate of the tax expenditure's effect on revenue for the most recently completed tax or calendar year, as appropriate, for which such information is available;
(V) The estimate required pursuant to subparagraph (IV) of this paragraph (a) for the tax expenditure that was included in each of the three prior tax profile and expenditure reports, if available; and
(VI) For a tax expenditure that is subject to the requirement set forth in section 39-21-304, a statement of the intended purpose of the tax expenditure.
(b) For the state income tax only, the tax profile and expenditure report must include the effect of the tax expenditure by income class. The provisions of this paragraph (b) shall only apply to the extent that the department is capable of accessing the necessary information from its data system.
(c) The tax profile and expenditure report must include the sum of all estimates required pursuant to subparagraphs (IV) and (V) of paragraph (a) of this subsection (2) for each tax.
(d) (I) To the extent not otherwise included in the tax profile and expenditure report pursuant to this subsection (2), the report must also include any information that was included in the Colorado tax profile study 2001 for any taxes covered by such study, which includes but is not limited to information related to:
(A) State and local tax collections;
(B) Revenues, taxes, incidence, and equity;
(C) The distribution of state and local taxes among households; and
(D) Colorado statistics of income.
(II) The information required pursuant to subparagraph (I) of this paragraph (d) shall be for the most recent tax year for which such information is available.
(3) (a) The department shall provide a copy of the report to all members of the general assembly in accordance with section 24-1-136 (9), C.R.S.
(b) Repealed.
(c) The department shall make the tax profile and expenditure report available for public inspection and shall publish the report on the department website.
(4) The reporting requirement set forth in this section is exempt from the provisions of section 24-1-136 (11).
(5) To the extent that the tax profile and expenditure report must include the distribution of tax burden by income class pursuant to paragraphs (b) and (d) of subsection (2) of this section, the department shall use at least as many income classes as the Colorado statistics of income in the Colorado tax profile study 2001, and the highest income class shall be at least as high as in such Colorado statistics of income.
(6) Repealed.
Source: L. 2011: Entire part added, (SB 11-184), ch. 290, p. 1349, � 3, effective June 3. L. 2014: (6) repealed, (HB 14-1018), ch. 35, p. 190, � 1, effective August 6. L. 2024: (3)(b) repealed and (4) amended, (HB 24-1036), ch. 373, p. 2533, � 29, effective August 7.
Cross references: For the legislative declaration in HB 24-1036, see section 1 of chapter 373, Session Laws of Colorado 2024.
39-21-304. Tax expenditure - tax preference performance statement - tax expenditure repeal requirement. (1) (a) On and after January 1, 2021, any bill that creates a new tax expenditure or extends an expiring tax expenditure must include a tax preference performance statement as part of a statutory legislative declaration.
(b) If the bill extends an expiring tax expenditure, the bill must either include a tax preference performance statement if one was not earlier included or it must amend, in such a way as to provide updated information, the tax preference performance statement that was included when the tax expenditure was enacted.
(2) The tax preference performance statement must indicate one or more of the following general categories, by reference to the applicable category specified in this subsection (2), as the legislative purpose of the new tax expenditure:
(a) Tax expenditure intended to induce certain designated behavior by taxpayers;
(b) Tax expenditure intended to improve industry competitiveness;
(c) Tax expenditure intended to create or retain jobs;
(d) Tax expenditure intended to reduce structural inefficiencies in the tax structure; or
(e) Tax expenditure intended to provide tax relief for certain businesses or individuals.
(3) In addition to the general category specified in subsection (2) of this section, a tax preference performance statement must also provide detailed information regarding the legislative purpose of the new tax expenditure or of the extension of the expiring tax expenditure. The required detailed information must, at minimum, include clear, relevant, and ascertainable metrics and data requirements that allow the general assembly and the state auditor to measure the effectiveness of the tax expenditure in achieving the purpose designated under this section.
(4) On and after January 1, 2021, any bill that creates a new tax expenditure must include a repeal of the expenditure after a specified period of tax years and any bill that extends an expiring tax expenditure must extend the expenditure for a specified period of tax years. A bill that creates a new tax expenditure or extends an expiring tax expenditure may not establish the tax expenditure for an indefinite period of time.
Source: L. 2011: Entire part added, (SB 11-184), ch. 290, p. 1351, � 3, effective June 3. L. 2020: Entire section amended, (SB 20-021), ch. 185, p. 850, � 1, effective September 14.