HB 15-1181 Summary

• Exempts active duty military compensation from Colorado state income tax for individuals who reacquire Colorado residency, effective for tax years beginning January 1, 2016.

• Allows active duty service members with a Colorado home of record to reacquire Colorado legal residency regardless of physical presence, provided they demonstrate intent through voter registration, property purchase, vehicle registration, written notification to previous state, or updated will.

• Eliminates state income tax filing requirements for individuals whose sole income source is exempt military compensation and prohibits state income tax withholding from such compensation.

• Applies to all active duty compensation included in federal taxable income earned by individuals who have reacquired Colorado residency under the statute.

• Takes effect August 5, 2015, subject to a November 2016 ballot approval requirement; if referendum petition is filed, approval by voters is required for implementation.