HB 24-1065

HB 24-1065, which has been signed into law, reduces the state income tax rate in Colorado. Starting from January 1, 2025, both individuals and corporations will pay a lower tax rate of 4.0% instead of the current 4.40%. This change means that taxpayers and businesses will see their taxes decrease by 0.4 percentage points starting next year. The bill also removes the requirement for a performance statement when making these changes to the tax code, which simplifies the process for future adjustments.

Official Summary

For income tax years commencing on and after January 1, 2025, the bill reduces both the individual and the corporate state income tax rates from 4.40% to 4.0%. 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 repeal after a specified period of tax years. (Note: This summary applies to this bill as introduced.)