(1) (a) (I) In the case of income tax imposed by article
22 of this title 39, except as provided in section 39-22-601.5, the taxpayer must file
any claim for refund or credit for any year not later than the period provided for
filing a claim for refund of federal income tax plus one year. The department shall
not pay any refund for which the claim is filed later than the period provided for the
payment of a refund of federal income tax plus one year. However, no refund or
credit of income tax may be made to any taxpayer who fails to file a return pursuant
to section 39-22-601 within four years from the date the return was required to be
filed. Except in the case of failure to file a return or the filing of a false or
fraudulent return with intent to evade tax and otherwise notwithstanding any
provision of law, the statute of limitations relating to claims for refund or credit for
any year shall not expire prior to the expiration of the time within which a deficiency
for such year could be assessed.
(II) In the case of the charge on oil and gas production imposed by article 60
of title 34, the production fee for clean transit imposed by section 43-4-1204, the
production fee for wildlife and land remediation imposed by section 33-61-103, the
passenger-mile tax imposed by article 3 of title 42, and the severance tax imposed
by article 29 of this title 39, the payer shall file any claim for refund or credit for
any period not later than three years after the date of payment.
(III) Claims for refund of other taxes covered by this article 21 must be made
within the time limits expressly provided for the specific taxes involved. This
subsection (1) does not apply to sales and use taxes.
(b) Repealed.
(c) Except as provided in section 39-21-105, no suit for refund may be
commenced.
(2) If the executive director discovers from the examination of a return within
the time periods provided for the filing of refunds, or upon claim duly filed by the
taxpayer, or upon final judgment of a court that the tax, penalty, or interest paid by
any taxpayer is in excess of the amount due or has been illegally or erroneously
collected, then the executive director shall issue in favor of the taxpayer his
voucher to the controller for the refund of such illegally collected tax, penalty, or
interest, regardless of whether or not such sum was paid under protest, together
with interest provided in section 39-21-110. Upon receipt of such voucher properly
executed and endorsed, the controller shall issue his warrant for the payment to
the taxpayer out of the reserve provided therefor; but the controller shall keep in
his files a duplicate of said voucher and also a statement which shall set forth the
reason why such refund has been ordered.
(3) (a) (I) (A) Whenever it is established that any taxpayer has, for any period
open under the statutes, overpaid a tax administered pursuant to this article 21 or
that any taxpayer is allowed a refund pursuant to part 20 of article 22 of this title
39 and that: There is an unpaid balance of tax and interest accrued, according to
the records of the executive director, owing by such taxpayer for any other period;
there is an amount required to be repaid to the unemployment compensation fund
pursuant to section 8-81-101 (4), the amount of which has been determined to be
owing as a result of a final agency determination or judicial decision or that has
been reduced to judgment by the division of unemployment insurance in the
department of labor and employment; there is any unpaid child support debt as set
forth in section 14-14-104, or child support arrearages that are the subject of
enforcement services provided pursuant to section 26-13-106, as certified by the
department of human services; there are any unpaid obligations owing to the state
as set forth in section 26-2-133, for overpayment of public assistance or medical
assistance benefits, the amount of which has been determined to be owing as a
result of final agency determination or judicial decision or that has been reduced to
judgment, as certified by the department of human services; there are any unpaid
obligations owing to the state as set forth in section 26.5-4-119, for overpayment of
child care assistance, the amount of which has been determined to be owing as a
result of final agency determination or judicial decision or that has been reduced to
judgment as certified by the department of early childhood; there is any unpaid loan
or other obligation due to a state-supported institution of higher education as set
forth in section 23-5-115, the amount of which has been determined to be owing as
a result of a final agency determination or judicial decision or that has been
reduced to judgment, as certified by the appropriate institution; there is any unpaid
loan due to the student loan division of the department of higher education as set
forth in section 23-3.1-104 (1)(p), the amount of which has been determined to be
owing as a result of a final agency determination or judicial decision or that has
been reduced to judgment, as certified by the division; there is any unpaid loan due
to the collegeinvest division of the department of higher education as set forth in
section 23-3.1-206, the amount of which has been determined to be owing as a
result of a final agency determination or judicial decision or that has been reduced
to judgment; there is any outstanding judicial fine, fee, cost, or surcharge as set
forth in section 16-11-101.8, or judicial restitution as set forth in section 16-18.5-106.8, the amount of which has been determined to be owing as a result of a final
judicial department determination or certified by the judicial department as a
judgment owed the state or a victim; or there is any unpaid debt owing to the state
or any agency thereof by such taxpayer, and that is found to be owing as a result of
a final agency determination or the amount of which has been reduced to judgment
and as certified by the state agency, so much of the overpayment of tax plus
interest allowable thereon as does not exceed the amount of such unpaid balance
or unpaid debt must be credited first to the unpaid balance of tax and interest
accrued and then to the unpaid debt, and any excess of the overpayment must be
refunded. If the taxpayer elects to designate the taxpayer's refund as a credit
against a subsequent year's tax liability, the amount allowed to be so credited must
be reduced first by the unpaid balance of tax and interest accrued and then by the
unpaid debt. If the taxpayer filed a joint return, the executive director shall notify
the other taxpayer named on the joint return that the portion of the overpayment
that is generated by the other taxpayer's income will be refunded upon receipt of a
request detailing said amount.
(B) With respect to debts for any unpaid loan or other obligation due to a
state-supported institution of higher education as set forth in section 23-5-115,
C.R.S., or any unpaid loan due to the student loan division of the department of
higher education as set forth in section 23-3.1-104 (1)(p), C.R.S., or any unpaid loan
due to the collegeinvest division of the department of higher education as set forth
in section 23-3.1-206, C.R.S., a debtor must be afforded his or her due process
rights prior to a final agency determination.
(II) Any moneys withheld for payment of an unemployment compensation
benefit debt pursuant to this subsection (3) shall be deposited with the state
treasurer and credited to the unemployment compensation fund. For persons
required to repay benefit overpayments in accordance with section 8-81-101 (4)(a),
C.R.S., the executive director of the department of revenue shall provide to said
division the taxpayers' names and associated amounts deposited with the state
treasurer.
(III) Any moneys withheld for payment of a child support debt or child
support arrearages pursuant to this subsection (3) shall be deposited in the family
support registry created pursuant to section 26-13-114, C.R.S., for disbursement by
the department of human services. For all names and amounts certified by the
department of human services pursuant to section 26-13-111, C.R.S., the executive
director of the department of revenue shall provide to the department of human
services the taxpayers' names and associated amounts deposited with the state
treasurer and any other identifying information as required by the department of
human services.
(IV) Any moneys withheld for payment of an institution of higher education
debt pursuant to this subsection (3) shall be deposited with the state treasurer for
disbursement by the state treasurer to the appropriate institution. For each person
whose name and amount is certified by the appropriate institution pursuant to
section 23-5-115, C.R.S., the executive director of the department of revenue shall
provide to the appropriate institution the name, address, and social security number
or federal employer identification number, whichever is applicable, of the taxpayer
whose refund is being offset, the amount of the offset, and any other identifying
information as required by the institution.
(V) Any money withheld for payment of an unpaid debt owing to the state
pursuant to this subsection (3) shall be deposited with the state treasurer for
disbursement by the controller. For each person whose name and amount is
certified by a state agency pursuant to section 24-30-202.4, the executive director
of the department of revenue shall provide to the controller the name, address, and
social security number or federal employer identification number, whichever is
applicable, of the taxpayer whose refund is being offset, the amount of the offset,
and any other identifying information as required by the controller.
(VI) Any moneys withheld for payment of a student loan division debt
pursuant to this subsection (3) shall be deposited with the state treasurer for
disbursement by the state treasurer to the division. For each person whose name
and amount is certified by the division pursuant to section 23-3.1-104 (1)(p), C.R.S.,
the executive director of the department of revenue shall provide to the division the
name, address, and social security number or federal employer identification
number, whichever is applicable, of the taxpayer whose refund is being offset, the
amount of the offset, and any other identifying information as required by the
division.
(VII) Any moneys withheld for payment of obligations owed the department
of human services for overpayment of public assistance benefits pursuant to this
subsection (3) shall be deposited with the state treasurer for disbursement by the
department of human services. For all names and associated amounts certified by
the department of human services pursuant to section 26-2-133, C.R.S., the
executive director of the department of revenue shall provide to the department of
human services the names of taxpayers and the associated amounts deposited with
the state treasurer and any other identifying information as required by the
department of human services.
(VIII) Any moneys withheld for payment of an obligation certified by the
judicial department pursuant to section 16-11-101.8 or 16-18.5-106.8, C.R.S., shall be
transferred to the judicial department. At the time of the offset, the executive
director shall notify the taxpayer of the offset and shall provide to the judicial
department the name, address, and social security number or federal employer
identification number, whichever is applicable, of the taxpayer whose refund is
being offset, the amount of the offset, and any other identifying information as
required by the judicial department.
(IX) Any money withheld for payment of obligations owed to the department
of early childhood for overpayment of child care assistance benefits pursuant to
this subsection (3) shall be deposited with the state treasurer for disbursement by
the department of early childhood. For all names and associated amounts certified
by the department of early childhood pursuant to section 26.5-4-119, the executive
director of the department of revenue shall provide to the department of early
childhood the names of taxpayers and the associated amounts deposited with the
state treasurer and any other identifying information as required by the department
of early childhood.
(b) In the event there are debts for overpayments of unemployment
insurance pursuant to section 8-81-101 (4), debts for unpaid child support, as set
forth in section 26-13-111, debts for overpayment of public assistance or medical
assistance benefits, as set forth in section 26-2-133, debts for overpayment of child
care assistance, as set forth in section 26.5-4-119, debts for any unpaid loan or
other obligation due to a state-supported institution of higher education, as set
forth in section 23-5-115, debts for any unpaid loan due to the student loan division
of the department of higher education, as set forth in section 23-3.1-104 (1)(p), any
amounts owed for judicial fines, fees, costs, or surcharges, as set forth in section
16-11-101.8, any amounts owed for judicial restitution, as set forth in section 16-18.5-106.8, and other unpaid debts owing to the state or any agency thereof, as set forth
in this subsection (3), then credit to the unpaid debts shall be prorated on the basis
of the ratio of the amount of each such unpaid debt as compared to the total
amount of unpaid debts.
(4) Notwithstanding the provisions of subsection (1) of this section, in the
case of the severance tax imposed by article 29 of this title, when an increase in the
value of any product is subject to the approval or affected by the actions of any
agency of the United States, or the state of Colorado, or any court, the increased
value shall be subject to this tax. In the event that the increase in value is
disapproved or reduced as the direct or indirect result of the actions of any agency
of the United States, the state of Colorado, or any court, either in whole or in part,
then the amount of tax which has been paid on the disapproved or reduced part of
the value shall be considered excess tax. Within one year following the final
determination of value, any person who has paid any such excess tax may apply for
a refund, and the executive director, upon proper finding, shall have the authority
and duty to refund the amount of excess tax paid. Any refund may, at the discretion
of the executive director, be made in the form of a credit against future tax
payments.
(5) (a) On and after October 1, 2002, any warrant representing a refund of
income tax imposed by article 22 of this title 39 or a grant for property taxes, rent,
or heat or fuel expenses assistance allowed by article 31 of this title 39 that is not
presented for payment within six months from its date of issuance shall be void. On
and after October 1, 2002, upon the cancellation of a warrant in accordance with
the standard operating procedures of the department or the state controller, the
department shall forward to the state treasurer the name of the taxpayer as it
appears on the warrant, the taxpayer identification number, the taxpayer's last-known address, the amount of the canceled warrant, and an amount of money equal
to the amount specified in the warrant so that the state treasurer may make the
refund pursuant to the Revised Uniform Unclaimed Property Act, article 13 of title
38.
(b) The department may reclaim from the unclaimed property fund and
credit to the appropriate state revenue fund any amount forwarded by the
department to the state treasurer pursuant to paragraph (a) of this subsection (5)
that was based on a warrant representing an erroneous refund or grant. If the state
treasurer issued an erroneous refund or grant to the person named on the warrant,
the treasurer shall provide proof of that payment to the department and the
department may assess that amount pursuant to section 39-21-103 (1).
(6) Repealed.
(7) (a) On and after October 1, 2010, any warrant representing a refund issued
by the department, excluding refunds addressed by subsection (5) of this section,
that is not presented for payment within six months from its date of issuance shall
be void. On and after October 1, 2010, upon the cancellation of a warrant in
accordance with the standard operating procedures of the department or the state
controller, the department shall forward to the state treasurer the name of the
taxpayer as it appears on the warrant, the taxpayer identification number, the
taxpayer's last-known address, the amount of the canceled warrant, and an amount
of money equal to the amount specified in the warrant so that the state treasurer
may make the refund pursuant to the Revised Uniform Unclaimed Property Act,
article 13 of title 38.
(b) The department may reclaim from the unclaimed property fund and
credit to the appropriate state revenue fund any amount forwarded by the
department to the state treasurer pursuant to paragraph (a) of this subsection (7)
that was based on a warrant representing an erroneous refund or grant. If the state
treasurer issued an erroneous refund or grant to the person named on the warrant,
the treasurer shall provide proof of that payment to the department, and the
department may assess that amount pursuant to section 39-21-103 (1).
Source: L. 65: p. 1137, � 2. C.R.S. 1963: � 138-9-7. L. 67: pp. 847, 848, �� 1, 2. L. 71: p. 1265, � 1. L. 77: (1)(a) amended and (4) added, pp. 1767, 1853, �� 5, 7,
effective January 1, 1978. L. 82: (3) amended, p. 558, � 1, effective April 6. L. 83: (3)
amended, p. 794, � 5, effective June 3; (3) amended, p. 654, � 2, effective June 10;
(3) amended, p. 438, � 2, effective June 15. L. 84: (3)(a) amended and (3)(b)(IV)
added, pp. 1008, 1010, �� 3, 4, effective March 29; (3) amended, p. 1011, � 1, effective
April 27; (3)(b)(IV) repealed and (3)(b) amended, pp. 1125, 1126, �� 47, 48, effective
June 7. L. 85: (3)(a)(I), (3)(a)(VI), and (3)(b) amended, p. 1366, � 39, effective June 28;
(3)(a)(I), (3)(a)(III), and (3)(b) amended, p. 602, � 22, effective July 1. L. 88: (3)(a)(I)
amended, p. 637, � 19, effective July 1. L. 89: (3)(a)(I) and (3)(b) amended and
(3)(a)(VII) added, p. 1195, � 4, effective June 7; (3)(a)(I) amended, p. 799, � 34,
effective July 1; (1)(a) amended, p. 1595, � 8, effective July 1, 1993. L. 94: (3)(a)(I),
(3)(a)(III), and (3)(a)(VII) amended, p. 3135, � 299, effective July 1. L. 96: (1)(a)
amended, p. 164, � 4, effective July 1. L. 98: (3)(a)(II) amended, p. 91, � 5, effective
March 23. L. 98, 2nd Ex. Sess.: (3)(a)(I) amended, p. 7, � 4, effective September 16. L. 99: (3)(a)(I) amended, p. 1317, � 5, effective August 4. L. 2001: (1)(a) and (3)(a)(I)
amended, p. 778, � 11, effective June 1; (1)(a) amended, p. 233, � 2, effective August
8; (5) added, p. 619, � 4, effective August 8. L. 2002: (3)(a)(I) amended, p. 99, � 1,
effective August 7. L. 2004: (1)(a) amended, p. 383, � 2, effective April 8; (3)(a)(I)
amended, p. 576, � 35, effective July 1; (1)(b) repealed, p. 207, � 31, effective August
4; (3)(a)(I)(A) and (3)(b) amended and (3)(a)(VIII) added, p. 1259, � 4, effective August
4; (6) added, p. 315, � 3, effective August 4. L. 2009: (1)(a) and (3)(a)(I)(A) amended,
(HB 09-1053), ch. 159, p. 690, � 14, effective August 5; (3)(a)(III), (3)(a)(IV), (3)(a)(V),
and (3)(a)(VI) amended, (HB 09-1137), ch. 308, p. 1662, � 14, effective September 1. L. 2010: (6) repealed, (SB 10-212), ch. 412, p. 2032, � 1, effective July 1; (7) added, (SB
10-186), ch. 309, p. 1454, � 1, effective August 11. L. 2011: (1)(a) amended, (HB 11-1303), ch. 264, p. 1175, � 91, effective August 10. L. 2012: (3)(a)(I)(A) amended, (HB
12-1120), ch. 27, p. 112, � 31, effective June 1. L. 2013: (3)(a)(I)(A) amended, (SB 13-247), ch. 296, p. 1584, � 4, effective August 7. L. 2014: (3)(a)(I)(A) amended, (SB 14-019), ch. 10, p. 96, � 2, effective February 27. L. 2019: (5)(a) and (7)(a) amended, (SB
19-088), ch. 110, p. 470, � 18, effective July 1, 2020. L. 2021: (3)(a)(I)(A) and (3)(a)(V)
amended, (SB 21-055), ch. 12, p. 78, � 15, effective March 21. L. 2022: (3)(a)(I)(A) and
(3)(b) amended and (3)(a)(IX) added, (HB 22-1295), ch. 123, p. 866, � 127, effective
July 1. L. 2023: (1)(a) amended, (HB 23-1277), ch. 290, p. 1754, � 5, effective August
7. L. 2024: (3)(a)(I)(A) amended, (SB 24-228), ch. 170, p. 899, � 8, effective May 14;
(1)(a) amended and (1)(c) added, (SB 24-230), ch. 184, p. 1024, � 9, effective May 16;
(3)(a)(I)(A) amended, (HB 24-1349), ch. 423, p. 2903, � 11, effective December 17 (see
editor's note).