HB 23-1063

House Bill 23-1063, which has been signed into law, reduces the state income tax rate for both individuals and corporations in Colorado. Starting from January 1, 2024, the tax rate will drop from 4.40% to 3.5%. This change means that taxpayers and businesses will pay less in state income taxes. The bill also removes certain requirements related to reporting the impact of these tax reductions. Since it has been signed, this law is now effective and will affect all Colorado residents and corporations starting next year.

Official Summary

For income tax years commencing on and after January 1, 2024, the bill reduces both the individual and the corporate state income tax rates from 4.40% to 3.5%. The bill also exempts the rate reductions from the existing statutory requirements that tax expenditure legislation include a tax preference performance statement in a statutory legislative declaration and a repeal after a specified period of tax years. (Note: This summary applies to this bill as introduced.)