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HB18-1185

Market Sourcing For Business Income Tax Apportionment

Concerning changes to the state income tax apportionment statute based on the most recent multistate tax commission's uniform model of the uniform division of income for tax purposes act.
Session:
2018 Regular Session
Subject:
Fiscal Policy & Taxes
Bill Summary

For income tax years commencing on and after January 1, 2019, the bill generally replaces the method for sourcing of sales for purposes of apportioning the income of a taxpayer that has income from the sale of services or from the sale, lease, license, or rental of intangible property in both Colorado and other states from the cost-of-performance test in the case of services and the commercial domicile test in the case of intangible property to a market-based sourcing system. Under this new system, receipts for the sale of services or from the sale, lease, license, or rental of intangible property are apportioned to Colorado based not on where the service is performed, but where the service is delivered.


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

Status

Introduced
Passed
Became Law

Bill Text