Colorado 2023 Regular Session Status: Enacted Bipartisan · 2 D · 1 R cosponsors

HB 23-1277 — Reporting Adjustments To Taxable Income

Last action — Governor Signed

Track this bill free

No card. One bill, free forever — alerts when it moves.

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed House
  4. ✓
    Passed Senate
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced March 30, 2023. Enacted.

Signed by Governor Jared Polis (Democratic) on June 01, 2023.

Prognosis

Likely to advance 94% · high confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 4 sponsors

    4 primary, 0 co-sponsors signed on.

  • Bipartisan support

    Sponsored across 2 parties (2 D · 1 R) — cross-party backing.

  • Cleared a recorded vote

    Passed 2 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

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.)

Bill Text

What changed in the latest version

25 added · 19 removed

Plain-language change summary

The amendment to HB 23-1277 includes changes to the Colorado Revised Statutes regarding income tax returns filed by business entities. Specifically, it adds provisions that require S corporations engaging in certain activities in the state to file tax returns, similar to C corporations. Additionally, it establishes a timeline for certain subsections to begin for tax years starting before January 1, 2024, and allows for the repeal of a subsection effective December 31, 2028. This matters because it clarifies filing requirements for S corporations and sets a limited duration for specific tax provisions.

→
Previous
Latest
First Regular Session Seventy-fourth General Assembly STATE OF COLORADO ENGROSSED This Version Includes All Amendments Adopted on Second Reading in the House of Introduction LLS NO.
First Regular Session Seventy-fourth General Assembly STATE OF COLORADO REENGROSSED This Version Includes All Amendments Adopted in the House of Introduction LLS NO.
23-0940.01 Jed Franklin x5484 HOUSE BILL 23-1277 HOUSE SPONSORSHIP Marshall and Taggart, SENATE SPONSORSHIP (None), House Committees Senate Committees Finance Appropriations A BILL FOR AN ACT C ONCERNING THE FILING OF INCOME TAX RETURNS BY BUSINESS ENTITIES .
23-0940.01 Jed Franklin x5484 HOUSE BILL 23-1277 HOUSE SPONSORSHIP Marshall and Taggart, Bird, Boesenecker, Frizell, Jodeh, Lindsay, Lindstedt, Snyder, Weinberg, Wilson SENATE SPONSORSHIP Kolker and Smallwood, House Committees Senate Committees Finance Appropriations A BILL FOR AN ACT C ONCERNING THE FILING OF INCOME TAX RETURNS BY BUSINESS ENTITIES .
This summary applies to this bill as introduced and does notreflectanyamendmentsthatmaybesubsequentlyadopted.Ifthisbill 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.) Under current law, partnerships and S corporations(pass-through entities) have 3 options for ensuring that the income taxes owed by nonresident owners will be paid.
This summary applies to this bill as introduced and does notreflectanyamendmentsthatmaybesubsequentlyadopted.Ifthisbill d d passes third reading in the house of introduction, a bill summary that e 2 applies to the reengrossed version of this bill will be available at E a 0 S U , http://leg.colorado.gov.) O n 2 H a r e A Under current law, partnerships and S corporations(pass-through r entities) have 3 options for ensuring that the income taxes owed by 3 nonresident owners will be paid.
Pass-through entities may 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 e n separate return.
Pass-through entities may file a composite return on behalf of these owners, withhold an estimated tax d payment, or collect and file an agreement that the owner will file a d separate return.
For income tax years beginning on and after January 1, m 2 S n 2 U g 2 Shading denotes HOUSE amendment.
For income tax years beginning on and after January 1, e 3 E a 0 S U , O g l Shading denotes HOUSE amendment.
H i r Capital letters or bold & italic numbers indicate new material to be added to existing eaA.
H d p Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law.
e A Dashes through the words or numbers indicate deletions from existing law.
R 2024, section 1 of the bill consolidates the composite return and withholdingoptionsandclarifiesthecalculationoftherequiredpayment.
d 2024, section 1 of the bill consolidates the composite return and withholdingoptionsandclarifiesthecalculationoftherequiredpayment.
⬇ Download PDF
View plain text versions (7)

Amendments

1 amendment

Click Show changes on an amendment above to see how it modifies the bill.

Action History

  1. Governor Signed

  2. Signed by the Speaker of the House

  3. Signed by the President of the Senate

  4. Sent to the Governor

  5. Senate Third Reading Passed - No Amendments

  6. Senate Committee on Appropriations Refer Unamended to Senate Committee of the Whole

  7. Senate Second Reading Special Order - Passed - No Amendments

  8. Senate Committee on Finance Refer Unamended to Appropriations

  9. Introduced In Senate - Assigned to Finance

  10. House Third Reading Passed - No Amendments

  11. House Second Reading Special Order - Passed - No Amendments

  12. House Second Reading Laid Over Daily - No Amendments

  13. House Committee on Appropriations Refer Unamended to House Committee of the Whole

  14. House Committee on Finance Refer Unamended to Appropriations

  15. Introduced In House - Assigned to Finance

Sponsors

Sponsorship breakdown

Export CSV (upgrade) →

4 sponsors · 0 co-sponsors · 98 not signed on

Sponsors (4)

Co-sponsors (0)

None.

Not signed on (98)

98 members have not signed on to this bill.

Show all 98 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

BILL

Passed 34 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Republican 5000
Democrat 13000
Unaffiliated 16001
Total 34001
% of votes cast 97%0%0%3%
How each member voted (35)
Member Party Vote
Buckner — Yea
Fields — Not Voting
Gardner — Yea
Ginal — Yea
Hansen — Yea
Lundeen — Yea
Moreno — Yea
Pelton B. — Yea
Pelton R. — Yea
Priola — Yea
Smallwood — Yea
Will — Yea
Zenzinger — Yea
Fenberg — Yea
Jaquez Lewis — Yea
Van Winkle — Yea
Winter F. — Yea
Chris Kolker Democrat Yea
Dylan Roberts Democrat Yea
James Coleman Democrat Yea
Janice Marchman Democrat Yea
Jeff Bridges Democrat Yea
Jessie Danielson Democrat Yea
Julie Gonzales Democrat Yea
Kyle Mullica Democrat Yea
Lisa Cutter Democrat Yea
Nick Hinrichsen Democrat Yea
Robert Rodriguez Democrat Yea
Tom Sullivan Democrat Yea
Tony Exum Democrat Yea
Barbara Kirkmeyer Republican Yea
Cleave Simpson Republican Yea
Janice Rich Republican Yea
Larry Liston Republican Yea
Mark Baisley Republican Yea

BILL

Passed 63 Yea · 0 Nay · 2 Other
Party YeaNayPresentNot Voting
Democrat 32001
Unaffiliated 19001
Republican 12000
Total 63002
% of votes cast 97%0%0%3%
How each member voted (65)
Member Party Vote
Armagost — Yea
Bird — Yea
Bockenfeld — Yea
Dickson — Yea
Epps — Yea
Evans — Yea
Gonzales-Gutierrez — Yea
Herod — Not Voting
Holtorf — Yea
Lynch — Yea
McLachlan — Yea
Ortiz — Yea
Parenti — Yea
Pugliese — Yea
Sharbini — Yea
Vigil — Yea
Winter T. — Yea
Young — Yea
Michaelson Jenet — Yea
deGruy Kennedy — Yea
Alex Valdez Democrat Yea
Andrew Boesenecker Democrat Yea
Bob Marshall Democrat Yea
Brianna Titone Democrat Yea
Cathy Kipp Democrat Yea
Eliza Hamrick Democrat Yea
Elizabeth Velasco Democrat Yea
Emily Sirota Democrat Yea
Iman Jodeh Democrat Yea
Javier Mabrey Democrat Yea
Jennifer Bacon Democrat Yea
Jenny Willford Democrat Yea
Judy Amabile Democrat Yea
Julie McCluskie Democrat Yea
Junie Joseph Democrat Yea
Karen McCormick Democrat Yea
Kyle Brown Democrat Yea
Lindsey Daugherty Democrat Yea
Lorena Garcia Democrat Yea
Mandy Lindsay Democrat Yea
Marc Snyder Democrat Yea
Matthew Martinez Democrat Yea
Meg Froelich Democrat Yea
Meghan Lukens Democrat Yea
Mike Weissman Democrat Yea
Monica Duran Democrat Yea
Naquetta Ricks Democrat Yea
Regina English Democrat Yea
Sheila Lieder Democrat Yea
Steven Woodrow Democrat Yea
Tammy Story Democrat Yea
Tisha Mauro Democrat Not Voting
William Lindstedt Democrat Yea
Anthony Hartsook Republican Yea
Brandi Bradley Republican Yea
Ken DeGraaf Republican Yea
Lisa Frizell Republican Yea
Lynda Zamora Wilson Republican Yea
Marc Catlin Republican Yea
Mary Bradfield Republican Yea
Matt Soper Republican Yea
Rick Taggart Republican Yea
Ron Weinberg Republican Yea
Scott Bottoms Republican Yea
Stephanie Luck Republican Yea

Subjects

taxation
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does HB 23-1277 do?
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.)
Who sponsors HB 23-1277?
HB 23-1277 is sponsored by Jim Smallwood, Chris Kolker (Democrat), Rick Taggart (Republican), and Bob Marshall (Democrat).
What is the current status of HB 23-1277?
This bill has been enacted into law. Introduced March 30, 2023. Enacted.
Where can I track HB 23-1277?
Track HB 23-1277 free on One Click Politics — get push/email alerts when it moves.

Make your voice heard on HB 23-1277

Find the representatives who decide this bill and tell them where you stand — for yourself, or mobilize your whole list in one click with One Click Politics advocacy software.

Find my representatives → Run a campaign

Stay ahead of HB 23-1277

Last checked for changes 3 months ago · updated continuously

One Click Politics tracks every bill in Congress and all 50 states.

Track this bill →