SB20-020: Reduction of State Income Tax Rate

• Reduces both individual and corporate state income tax rates from 4.63% to 4.49% for tax years commencing on or after January 1, 2020.

• Reduces the state alternative minimum tax rate from 3.47% to 3.33% for the same tax years.

• Adjusts the tax credit against federal alternative minimum tax from 12% to 11.86% of the federal credit allowed.

• Updates withholding tax rates and temporary adjustment mechanisms in Colorado Revised Statutes to reflect the new rates.

• Takes effect August 5, 2020, unless a referendum petition is filed within 90 days of final adjournment, in which case voter approval at the November 2020 general election is required.