HB18-1060

HB18-1060 - Income Tax Deduction For Military Retirement Benefits

Passed/Signed into Law
Concerning a state income tax deduction for military retirement benefits for an individual who is under fifty-five years of age.

The starting point for determining state income tax liability is federal taxable income. This number is adjusted for additions and subtractions (deductions) that are used to determine Colorado taxable income, which amount is multiplied by the state's 4.63% income tax rate. The bill allows an individual who is under 55 years old and whose military retirement benefits are less than $40,000 to claim a deduction in the following amount:

 

  • For the 2019 income tax year, 25% of the individual's military retirement benefits;
  • For the 2020 income tax year, 50% of the individual's military retirement benefits or $10,000, whichever is less; and
  • For the 2021 and 2022 income tax years, the individual's military retirement benefits or $10,000, whichever is less.

The bill also requires the department of revenue, as part of its tax profile and expenditure report, to estimate the number of individuals who claim the new deduction for the 2019 income tax year, and of those, the number who are first-time filers in the state.

(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

 

Latest update: May 29, 2018
05/29/2018 - Governor Signed
05/22/2018 - Sent to the Governor
05/22/2018 - Signed by the President of the Senate
05/22/2018 - Signed by the Speaker of the House
05/09/2018 - House Considered Senate Amendments - Result was to Concur - Repass
05/09/2018 - Senate Third Reading Passed - No Amendments
05/08/2018 - Senate Second Reading Passed with Amendments - Committee
05/08/2018 - Senate Committee on Appropriations Refer Amended to Senate Committee of the Whole
05/07/2018 - Senate Committee on Finance Refer Unamended to Appropriations
05/07/2018 - Introduced In Senate - Assigned to Finance
05/07/2018 - House Third Reading Passed - No Amendments
05/04/2018 - House Second Reading Special Order - Passed with Amendments - Committee
05/04/2018 - House Committee on Appropriations Refer Amended to House Committee of the Whole
02/07/2018 - House Committee on Finance Refer Amended to Appropriations
01/29/2018 - House Committee on Finance Lay Over Unamended - Amendment(s) Failed
01/10/2018 - Introduced In House - Assigned to Finance + Appropriations