HB22-1125 Summary

• Makes permanent any state income tax rate reduction implemented to refund excess revenues under TABOR (Taxpayer's Bill of Rights) for fiscal years beginning July 1, 2022 or later.

• Establishes that each income tax rate reduction equals 0.05% of the current rate, applied permanently to both individual and corporate income tax rates.

• Reduces the standard income tax rate from 4.55% to a lower permanent rate whenever the executive director determines a reduction is necessary to refund excess state revenues.

• Exempts the income tax rate reduction from tax preference performance statement requirements and repeal date requirements that normally apply to tax expenditures.

• Takes effect 90 days after final adjournment of the general assembly, unless subject to a referendum petition, in which case it requires voter approval at the November 2022 election.