HB 23-1277 CO

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Became Law

The act changes how pass-through entities may elect to pay taxes, specifies how to report and account for adjustments to federal taxable income, and changes the due date for filing a C-corporation income tax return. Partnerships and S corporations (pass-through entities) have had 3 options for ensuring that the income taxes owed by nonresident owners will be paid. Pass-through entities have been able to file a composite return on behalf of these owners, withhold an estimated tax payment, or collect and file an agreement that the owner will file a separate return. For income tax years beginning on and after January 1, 2024, section 1 of the act consolidates the composite return and withholding options and clarifies the calculation of the required payment. Section 2 adopts the multistate tax commission's model statute for reporting adjustments to federal taxable income. When federal taxable income is adjusted by the internal revenue service, or by the taxpayer through an amended federal return, the taxpayer must also report that change to the state. Those changes have had to be reported within 30 days and new federal centralized partnership audit procedures have not been addressed. The act provides additional time for reporting adjustments and allows pass-through entities to handle adjustments at the entity level on behalf of their owners. Section 3 changes the due date for income tax returns by C corporations. State income tax returns have had to be filed by C corporations by April 15, and prior to 2017, the federal income tax return deadline for C corporations was March 15. This meant that the state's April 15 due date and October 15 extension deadline was one month after the federal due date. In 2017, congress moved the federal due date for C corporations to April 15. Section 3 restores the one-month lag by changing the state due date to May 15, with a November 15 extension deadline. APPROVED by Governor June 1, 2023 PORTIONS EFFECTIVE January 1, 2024 PORTIONS EFFECTIVE August 7, 2023 NOTE: This act was passed without a safety clause and portions of it take effect 90 days after sine die. (Note: This summary applies to this bill as enacted.)

• Bob Marshall Democratic · primary
• Rick Taggart Republican · primary
• Chris Kolker Democratic · primary
• Jim Smallwood · primary

1. Jun 1, 2023 Governor Signed · executive
2. May 17, 2023 Sent to the Governor · executive
3. May 17, 2023 Signed by the President of the Senate · upper
4. May 17, 2023 Signed by the Speaker of the House · lower
5. May 6, 2023 Senate Third Reading Passed - No Amendments · upper
6. May 5, 2023 Senate Second Reading Special Order - Passed - No Amendments · upper
7. May 5, 2023 Senate Committee on Appropriations Refer Unamended to Senate Committee of the Whole · upper
8. May 2, 2023 Senate Committee on Finance Refer Unamended to Appropriations · upper
9. Apr 25, 2023 Introduced In Senate - Assigned to Finance · upper
10. Apr 24, 2023 House Third Reading Passed - No Amendments · lower
11. Apr 21, 2023 House Second Reading Special Order - Passed - No Amendments · lower
12. Apr 20, 2023 House Second Reading Laid Over Daily - No Amendments · lower
13. Apr 18, 2023 House Committee on Appropriations Refer Unamended to House Committee of the Whole · lower
14. Apr 10, 2023 House Committee on Finance Refer Unamended to Appropriations · lower
15. Mar 30, 2023 Introduced In House - Assigned to Finance · lower