CO HB1275

Requires corporations incorporated in foreign tax haven jurisdictions for tax avoidance purposes to be included in combined corporate income tax reports filed with Colorado, overriding the previous 80% property/payroll exclusion threshold.

Defines a "tax haven corporation" as any C corporation incorporated in a jurisdiction with no or nominal effective tax that meets at least one of five criteria, including lack of information exchange with other governments, absence of tax transparency, facilitation of foreign-owned entities without local presence, exclusion of resident taxpayers, or overall favorable tax avoidance regime.

Allows corporations to prove to the Department of Revenue that foreign incorporation meets the economic substance doctrine under federal law, exempting them from tax haven classification.

Submits a ballot measure to Colorado voters in November 2016 asking approval to increase taxes by an estimated $75 million annually from tax haven income, with revenues directed to elementary and secondary public school education and exempt from TABOR spending limitations.

Requires the state controller to credit estimated tax revenue from this provision annually to the state education fund beginning in fiscal year 2017-18, to be appropriated for increasing total program education funding and categorical programs.