§ 39-21-110 — Interest on overpayments - repeal

Colorado § 39-21-110

• Jurisdiction: Colorado
• Title 39: Taxation
• Art.: Procedure and Administration

Text

(1) Interest shall be allowed
and paid upon any overpayment in respect to any tax or charge administered
pursuant to this article 21 at the rate imposed under section 39-21-110.5. Such
interest shall be allowed and paid as follows:

(a) In the case of a credit, from the date of the overpayment to the due date
of the amount against which the credit is taken;

(b) Except as provided in subsection (1)(c) of this section, in the case of a
refund, from the date of the overpayment to a date, to be determined by the
executive director of the department of revenue or their delegate, preceding the
date of the refund by not more than thirty days, whether or not such refund is
accepted by the taxpayer after tender of such refund to the taxpayer. The
acceptance of such refund shall be without prejudice to any right of the taxpayer to
claim any additional overpayment and interest thereon; or

(c) (I) In the case of a refund claim made by a purchaser for sales or use tax
paid to a vendor under section 39-26-703 (2) on or after July 1, 2022, but before July
1, 2026, from the date that the claim for refund was filed to a date, to be
determined by the executive director of the department of revenue or their
delegate, preceding the date of the refund by not more than thirty days, whether or
not such refund is accepted by the taxpayer after tender of such refund to the
taxpayer, but only if the date of the refund is more than one hundred eighty days
from the date the claim for refund was filed. The acceptance of such refund shall
be without prejudice to any right of the purchaser to claim any additional
overpayment and interest thereon.

(II) This subsection (1)(c) is repealed, effective July 1, 2030.

(1.5) Notwithstanding any other provision of this section to the contrary, a
payment not made incident to a bona fide and orderly discharge of an actual
liability or a liability reasonably assumed to be imposed by law is not an
overpayment for the purposes of this section only, and interest is not payable on
the payment. For purposes of this subsection (1.5), the following burdens of proof
shall apply:

(a) If a taxpayer's total payments are less than or equal to twice the amount
of the actual tax liability, then the department shall bear the burden of proving, by a
preponderance of the evidence, that such payments were not made incident to a
bona fide and orderly discharge of an actual liability or a liability reasonably
assumed to be imposed by law; and

(b) If a taxpayer's total payments are more than twice the amount of the
actual tax liability, then the taxpayer shall bear the burden of proving, by a
preponderance of the evidence, that such payments were made incident to a bona
fide and orderly discharge of an actual liability or a liability reasonably assumed to
be imposed by law.

(2) Any portion of any tax or charge administered pursuant to this article 21
or any interest, assessable penalty, additional amount, or addition to a tax or charge
which has been erroneously refunded shall bear interest at the rate imposed under
section 39-21-110.5 from the date of the payment of the refund.

(3) If any overpayment of any tax or charge administered pursuant to this
article 21 is refunded within ninety days after the last date prescribed for filing the
return of such tax or charge, determined without regard to any extension of time
for filing the return, no interest shall be allowed under subsection (1) of this section
on such overpayment.

(4) If the amount of any income tax is reduced by reason of a carry-back of a
net operating loss, such reduction in tax shall not affect the computation of interest
under this section for the period ending with the last day of the taxable year in
which the net operating loss arises. If any overpayment of income tax results from a
carry-back of a net operating loss, such overpayment shall be deemed not to have
been made prior to the close of the taxable year in which such net operating loss
arises.

Legislative History

Source: L. 65: p. 1139, � 2. C.R.S. 1963: � 138-9-9. L. 73: p. 1418, � 104. L. 77: IP(1), (2), and (3) amended, pp. 1768, 1854, �� 7, 9, effective January 1, 1978. L. 79: IP(1), (2), and (3) amended, p. 1500, � 25, effective January 1, 1980. L. 81: IP(1) and (2) amended, p. 1864, � 3, effective June 8. L. 86: (2) amended, p. 1111, � 8, effective July 1. L. 89: (2) and (3) amended, p. 1596, � 10, effective July 1, 1993. L. 90: IP(1), (2), and (3) amended, p. 1724, � 11, effective May 1; IP(1), (2), and (3) amended, p. 1725, � 12, effective July 1, 1993. L. 2009: (1.5) added, (HB 09-1219), ch. 71, p. 241, � 1, effective March 25. L. 2022: IP(1) and (1)(b) amended and (1)(c) added, (HB 22-1118), ch. 110, p. 501, � 1, effective April 21. L. 2024: IP(1), (2), and (3) amended, (HB 24-1349), ch. 423, p. 2904, � 13, effective December 17 (see editor's note).