[{"_1":2,"_100":-5,"_101":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76,88],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6134116,"mediaKeyId","5687423-9a69a5a2af2695f3a350015a365f2e70","parentId",5687423,"title","Committee approves repeal of reduced insurance premium tax rate for regional home offices","audioSeconds",3260,"startMs",7372000,"endMs",10632000,"viewUrl","/Search/View?dp=1&key=5687423-9a69a5a2af2695f3a350015a365f2e70&start=7372&end=10632","thumbnailUrl","https://assets.pipeline.soar.com/5687423-9a69a5a2af2695f3a350015a365f2e70/thumbnail_7372000.jpg","articleUrl","/articles/6134116/Colorado/Committee-approves-repeal-of-reduced-insurance-premium-tax-rate-for-regional-home-offices","mediaUrl","https://secure.pipeline.soar.com/6134116-ed23b573d6de5a8251adf88b010dc088/orig.mp4?Expires=1770612545&Signature=duBJcdIqo1H3BnFjpYt95L3r0eqKrMPkJbbr-tfLvylEejwguKyKx5d-Gom4pY9gESAI-tMbn49k5EZcXGkDSX3wnbeLqZtHETi2rRLSp573qZHsLxJAh2fCGvEPR8DzG3U~y6u3rOjFn~G7TjwMOsqUzy4sJrW9GEw8nB3eHxt0RVijjhjC0uPgUPOHWeki4fWCgvi3egQK5zy1iCkepAyWltHM0cUdHb2CBI9XCJj7TpJUx6R8ztqfaZndEvU6WxArpSwoRoEXPtEXCapXwKtH9WWT0OmAtmbuD0Al7j6fAfvZwcpFEias57-tJsl2aF~TMmAgrA~FHeqAafj4nA__&Key-Pair-Id=KUT5TJCACFTXG","author","Colorado State Legislature","date","2025-08-23T00:00:00Z","article","The Senate Committee on Appropriations voted 5–2 to advance HB25B‑1003, a bill that would discontinue Colorado’s long‑standing reduced insurance‑premium tax rate for regional or “home” insurance offices. Sponsors said the Office of the State Auditor’s reports from 2020 and 2025 show the tax reduction has not produced the jobs or local economic activity intended and that repeal would free revenue for state priorities.

Why it matters: The insurance premium tax reduction dates to 1959 and was intended to attract insurance companies’ regional offices and jobs to Colorado. State audit work reviewed decades of data and found that many qualified groups collectively reduced their Colorado workforce while claiming tax benefits; the 2025 OSA report surveyed groups and found several said the statutory workforce requirement was not influential in their decisions to locate employees in Colorado. Sponsors argued the credit is inefficient and that ending it will help close the state’s budget gap without cutting core services.

Testimony and concerns: Supporters included anti‑poverty and fiscal policy groups and county leaders who said repealing an ineffective subsidy will preserve funds for schools, Medicaid and public infrastructure. Opponents — including industry representatives and property/casualty and life insurers — warned that removing the 1% reduction could push employers to relocate offices and employees to other states, eroding the tax base, charitable giving and local economic ties. Industry witnesses suggested a temporary pause could be preferable to full repeal.

Fiscal and statutory mechanics: The fiscal note projects $44.1 million in additional state revenue in the current fiscal year and larger amounts in subsequent years if the reduced rate ends. Sponsors told the committee the statutory “waterfall” allocating some revenue to specific purposes had already been repealed effective 07/01/2025, so ~all additional funds would flow to the general fund for appropriation by the legislature. The committee discussed job‑count differences among states and whether dynamic economic modeling was warranted.

Outcome: The committee advanced HB25B‑1003 to the committee of the whole, recording a 5–2 roll call vote. Sponsors said they will seek to use the funds for general operations and to shore up budget pressures; opponents said they will watch for relocation risks and raised the question of TABOR referral.","mediaType","Video","parentTitle","Senate Appropriations [Aug 23, 2025]","oneSentenceSummary","HB25B‑1003, which would end the regional home office insurance premium tax reduction, passed the Senate Appropriations Committee 5–2. Sponsors cited two state auditor reports that found the tax break failed to generate jobs; opponents warned of job and revenue loss and urged TABOR referral.","taxTitle","Appropriations, Standing Committees, Senate, Committees, Legislative, Colorado","taxId",15034,"location","Colorado","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6134120,"Committee advances bill to decouple Colorado from federal FDII and expand tax‑haven list",2045,4974000,7019000,"/Search/View?dp=1&key=5687423-9a69a5a2af2695f3a350015a365f2e70&start=4974&end=7019","https://assets.pipeline.soar.com/5687423-9a69a5a2af2695f3a350015a365f2e70/thumbnail_4974000.jpg","/articles/6134120/Colorado/Committee-advances-bill-to-decouple-Colorado-from-federal-FDII-and-expand-taxhaven-list","https://secure.pipeline.soar.com/6134120-99535a3eacb24fd0021c33a33b183843/orig.mp4?Expires=1770612546&Signature=hzphEEzeikNZmuYQAaTZJriyQw0mx9~drX3IOqJpqz6KQ3viz8To7J8M31tW9~I2RnLUuboz8i4PElQjOCfd3jhi1TVEnjvIIPTL6-r1FK2VhEAU63Xq6gQUd8w6O4QikH5XxBEzRbnxqTlPxlrgEkwsq7jhuaWbhwoUVmBXRR03CqD4Dnk4nMr8UGAvtd6~RVtvPF87BJAoh5dY-sgTzQrFQ6HBC7G5BpE6w0TMGVVsgb8YgjOzyyYtFW0JiN1KAYukgFULlIZetBDlXWecaBFLvCNjCNVMYX8P0prma1pOIETldMWjEdcVvjyBA7LaZO6PYxQ7~oKa~8r31RptiA__&Key-Pair-Id=KUT5TJCACFTXG","The Senate Committee on Appropriations voted to advance HB25B‑1002, a bill that would decouple Colorado from the federal foreign‑derived intangible income (FDII) deduction and add five jurisdictions to the state’s list of presumptive tax havens. Sponsors said the measure prevents federal rules from generating unintended state tax preferences for multinational corporations.

Why it matters: Sponsors and fiscal policy witnesses said federal changes (referred to in committee as “HR 1”) created federal tax breaks that can flow into Colorado by virtue of the state’s rolling conformity with federal taxable income. Committee supporters argued FDII and profit‑shifting to low‑tax jurisdictions reduce state revenue available for schools, health care and infrastructure. Opponents raised constitutional concerns about TABOR and asked whether voter referral is required for measures that change revenue.

Sponsor summary: Senator Ball, the Senate sponsor, said HB25B‑1002 does two things: it adds the Netherlands, the Republic of Ireland, Hong Kong, Singapore and Liechtenstein to Colorado’s presumptive tax‑haven list (a rebuttable presumption) and decouples the state tax code from the federal FDII deduction. Ball argued 26 states already decoupled from FDII and that doing so protects Colorado from subsidizing economic activity located outside the state.

Witnesses: Caroline Nutter of the Colorado Fiscal Institute urged the committee to approve the bill, saying federal FDII subsidizes profit‑shifting and that Colorado does not need to mirror the federal preference. County and policy witnesses urged the change as a way to preserve state revenue for counties and for services; industry witnesses and some residents questioned the constitutionality and practical effects, asking whether the change is incidental or requires voter approval under TABOR. Department of Revenue staff confirmed FDII and related pass‑through items are included in the federal rule set that Colorado conforms to and offered to supply detailed statistics on joint vs. single filers as requested.

Fiscal and legal notes: The fiscal note included an estimated FY2025‑26 revenue gain of about $35.6 million. Committee members questioned whether the estimated gains are “de minimis” or incidental under TABOR precedent (RTD v. Tabor Foundation and related case law). Sponsors argued the change is consistent with other states’ actions and that the change is a policy choice to prevent Colorado from granting tax preferences for income sourced or reported outside the state.

Outcome: The committee advanced HB25B‑1002 to the committee of the whole by voice/roll call (final committee vote recorded 5–2). The bill will next go to the committee of the whole for further consideration.","The Appropriations Committee advanced HB25B‑1002 to the committee of the whole after sponsors said the bill would stop certain federal tax breaks (FDII) from flowing into Colorado and add five jurisdictions to the state's presumptive tax‑haven list.",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":92,"_45":93,"_47":94,"_49":95,"_51":96,"_53":97,"_55":56,"_57":58,"_59":98,"_61":62,"_63":64,"_65":99,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6134125,"Senate committee backs continuing state limit on federal QBI deduction",4871,65000,4936000,"/Search/View?dp=1&key=5687423-9a69a5a2af2695f3a350015a365f2e70&start=65&end=4936","https://assets.pipeline.soar.com/5687423-9a69a5a2af2695f3a350015a365f2e70/thumbnail_65000.jpg","/articles/6134125/Colorado/Senate-committee-backs-continuing-state-limit-on-federal-QBI-deduction","https://secure.pipeline.soar.com/6134125-dfcc19d4ab12b3efdee85d597458a53e/orig.mp4?Expires=1770612546&Signature=PzdVz1tzGzNxtwtszzerkMZja~uUDkkYN3FixwSxpXriaCBHLdO16gK0-Jax2f2Mii1ovxehCNERZhwXvh4fMi21ku03NNyRXzw1LHCg1krGHWuk86Ww3v3bEc7q6VdvH7b1FxjBsjieywS~p5kslLoUgZrUhWWE3l5oyJxLiwMBaGXpPaJ84YQEAYkKIGBUja7Hz2xEo8MJezrTtFCvNV4IQ~6zVZq4eQTK8Odnf4xBrHEx-eaTq6eJaqYqKHLHIH8xVNM-GQbQcI29DVRkE1vZGE4HaBiP7lOZi~G9j8HTTL0L6-9zYZAg0Rbv2guj2FoFrrchramxbUc32MQbDQ__&Key-Pair-Id=KUT5TJCACFTXG","The Senate Committee on Appropriations on Thursday voted 5–2 to advance HB25B‑1001, a bill that continues the state’s current limitation on the federal qualified business income (QBI) deduction for non‑corporate filers, keeping the $500,000 single and $1,000,000 joint income thresholds. The measure’s sponsors said the change preserves state policy as the corresponding federal deduction was altered by federal legislation.

Why it matters: Committee sponsors and witnesses said continuing the limitation prevents a large share of the QBI benefit from flowing to very high‑income taxpayers and protects state revenue used to fund programs such as Medicaid and SNAP. Opponents said the bill is effectively a tax policy change that produces new net revenue in the short term and therefore should be referred to voters under the Taxpayer Bill of Rights (TABOR).

Sponsors explained HB25B‑1001 as a continuation of existing Colorado policy tied to the federal deduction. Senator Heinrichsen, a sponsor, told the committee the federal QBI deduction was created in the 2017 federal tax law and was designed to expire in 2025; he said federal changes have altered that timeline and HB25B‑1001 “continues our current tax policy exactly as it is now.” Senator Cutter, another sponsor, framed the bill as narrowing an outsized benefit: “less than 2% of the taxpayers receive a third of the benefits from this tax break.”

Witness testimony split along fiscal and equity lines. Joshua Mantel of the Bell Policy Center testified in favor, arguing the deduction’s structure makes little sense in Colorado because the state’s corporate and individual rates are the same, and because the cap shields high earners; he said the measure is restricted to higher‑income filers and preserves support for small businesses. Clear Creek County Commissioner George Marlin, speaking for Counties and Commissioners Acting Together, said counties face federal changes that will shift more costs to state and local governments and argued the cap ensures a fair contribution from the wealthiest: “The deduction overwhelmingly benefits the top 2% of earners. Maintaining this limit ensures that those with the greatest means contribute fairly.” Opponents, including resident Erin Meschke, said the policy change amounts to a tax increase and urged voter referral.

Fiscal and legal issues were debated in committee. Committee members and the Department of Revenue’s Director of Tax Policy (Josh Pens) agreed the bill would increase state revenues in the current fiscal year (the fiscal note shows an estimated $45,900,000 increase for FY 2025‑26 and larger amounts in later years), but sponsors characterized that timing as an artifact of mismatched effective dates between federal and state rules and maintained the bill is a continuation of existing policy rather than a new tax. Several senators pressed whether the change triggers TABOR’s requirement for prior voter approval; sponsors argued case law allows incidental or de minimis revenue changes and that courts have upheld similar legislative tax adjustments, while opponents said the change is substantive and should be referred.

The committee recorded a roll call vote on the measure. The motion to advance HB25B‑1001 passed 5–2. The committee record shows Senators Kolker, Wallace, Weissman, the vice chair, and the chair voted aye; Senators Kirkmeyer and Helton voted no.

What’s next: The bill was advanced to the committee of the whole. If enacted, the statute will preserve the current state treatment of QBI for non‑corporate taxpayers with the specified thresholds; the transcript and fiscal note identify Schedule F (farm income) as excluded from the QBI limitation.","The Senate Appropriations Committee voted 5–2 to advance HB25B‑1001, a bill that preserves Colorado’s current limitation on the federal qualified business income (QBI) deduction — keeping the $500,000 single / $1,000,000 joint thresholds — amid debate over whether the change requires voter approval under TABOR.","actionData","errors"]

Article not found

Committee approves repeal of reduced insurance premium tax rate for regional home offices

Committee advances bill to decouple Colorado from federal FDII and expand tax‑haven list

Senate committee backs continuing state limit on federal QBI deduction