§ 39-21-114.5 — Surrender of property subject to levy - definition

Colorado § 39-21-114.5

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

Text

(1) For any
person in possession of property or rights to property owned by or owing to a
taxpayer that is subject to levy:

(a) (I) Except as provided in subsection (1)(a)(II) of this section, a person shall,
upon demand of the executive director, surrender the property or the rights to the
property subject to levy to the executive director.

(II) A person is not required to surrender the property or the rights to the
property belonging to the taxpayer that is subject to levy to the executive director
if the person, at the time of the demand, has a valid right of setoff or an interest
superior to the department's.

(b) If the person is a bank or other financial institution, the bank or other
financial institution shall surrender any deposits in the bank or financial institution
within twenty-one days after service of the levy.

(c) If the person is an employer, the employer shall surrender salary or
wages within twenty-one days after the end of the taxpayer's pay period. The effect
of a levy on salary or wages payable to or received by a taxpayer is continuous from
the date the levy is first made until the department releases the levy. The levy for
any pay period may not exceed twenty-five percent of the taxpayer's disposable
earnings. For purposes of this section, disposable earnings has the same meaning
as set forth in section 13-54-104 (1).

(2) Any person who fails to or refuses to surrender property or rights to
property owned by or owing to a taxpayer that is subject to levy upon demand by
the executive director is liable to the state for a sum equal to the value of the
property or the rights to the property that is not surrendered, not to exceed the
amount of the liability for which the levy was made. Any amount recovered under
this subsection (2) is credited against the liability for which the levy was made.

(3) Any person in possession of property or rights to the property belonging
to a taxpayer that is subject to levy and upon which a levy has been made, who,
upon demand by the executive director, surrenders such property or rights to the
property to the executive director or who pays the liability required under
subsection (2) of this section is discharged from any obligation or liability to the
taxpayer and any other person with respect to the property or rights to the property
arising from the surrender or payment.

Legislative History

Source: L. 2019: Entire section added, (SB 19-035), ch. 64, p. 232, � 3, effective August 2.