C.R.S. § 39-22-108.5 — Dual resident trusts - income tax calculation

(1) With respect to a trust that is a resident of another state and becomes a resident of Colorado after May 25, 2006, and that is subject to income taxes in the other state and in Colorado by virtue of the trust's dual residence, the executive director shall, in lieu of the credit granted in section 39-22-108 (1), allow a credit to the Colorado income tax to be determined in accordance with this section. (2) The credit amount shall be equal to the Colorado income tax imposed on the portion of the trust's income that is subject to tax in Colorado and the other state, multiplied by a percentage equal to the other state's income tax rate for the income tax year divided by the sum of the income tax rates of Colorado and the other state for the income tax year. (3) If the credit amount in subsection (2) of this section is computed using more than one other state, the percentage used shall equal the combined total of all the other states' income tax rates for the income tax year divided by the combined income tax rates of Colorado and the other states for the income tax year. (4) For purposes of this section, state income tax rate means the trust's state income tax liability divided by the trust's taxable income used to compute the state income tax liability. (5) The provisions of section 39-22-108 (3), (4), and (5) shall apply to this section. Source: L. 2006: Entire section added, p. 1163, § 1, effective May 25.