Colorado § 39-22-344 - Imposition of tax.

§ 39-22-344. Imposition of tax.

(1) With respect to any taxable period for which it has made the election under section 39-22-343, an electing pass-through entity is subject to a tax in an amount equal to the tax rate set forth in section 39-22-301 for the applicable income tax year multiplied by the sum of the following, all as determined pursuant to sections 39-22-202, 39-22-203, 39-22-322, and 39-22-323:

(a) Each electing pass-through entity owner's pro rata or distributive share of the electing pass-through entity's income attributable to the state; and

(b) Each resident electing pass-through entity owner's pro rata or distributive share of the electing pass-through entity's income not attributable to the state.

(2) An electing pass-through entity is treated as a corporation under section 39-22-606 with respect to the tax imposed under this subpart 3; except that the requirement to make estimated payments under section 39-22-606 does not apply for income tax years commencing prior to January 1, 2023.

(3) Any credit allowed pursuant to this article 22 that is attributable to the activities of an electing pass-through entity in the taxable year is passed through to and must be claimed by the electing pass-through entity owner.

(4) The executive director of the department of revenue may promulgate rules in accordance with article 4 of title 24 to require or permit an electing pass-through entity to make returns, set forth information, or furnish copies of information as required in section 39-22-601 (2.5)(a) through (2.5)(c) and (5)(a) through (5)(c) as is necessary to execute the provisions of this subpart 3. Notwithstanding the specificity of the foregoing, the executive director may promulgate such other rules as are, in the executive director's view, necessary or expedient in enforcing the provisions of this subpart 3.

(5) The provisions of section 39-22-601 (2.7)(d) and (5.5)(d) are not applicable to an electing pass-through entity.

(6) The provisions of article 21 of this title 39 regarding the collection, administration, and enforcement of tax is applicable to the tax due under this section, and, notwithstanding the provisions of sections 39-22-201, 39-22-302, and 39-22-322, an electing pass-through entity is a taxpayer.

Source: L. 2021: Entire subpart added, (HB 21-1327), ch. 300, p. 1802, § 1, effective June 23. L. 2022: IP(1), (2), and (3) amended, (SB 22-124), ch. 164, p. 1019, § 3, effective May 16. L. 2023: (5) amended, (HB 23-1277), ch. 290, p. 1755, § 8, effective January 1, 2024.