16-954

16-954. Clean elections tax reduction; return
of excess monies.

(Caution: 1998 Prop. 105 applies)

A. For tax years beginning on or after January 1, 1998, a taxpayer who files on a
state income tax return form may designate a five-dollar voluntary contribution per
taxpayer to the fund by marking an optional check-off box on the first page of the
form. A taxpayer who checks this box shall receive a five-dollar reduction in the amount
of tax, and five dollars from the amount of taxes paid shall be transferred by the
department of revenue to the fund. The department of revenue shall provide check-off
boxes, identified as the clean elections fund tax reduction, on the first page of income
tax return forms, for designations pursuant to this subsection.

B. Any taxpayer may make a voluntary donation to the fund by designating the fund
on an income tax return form filed by the individual or business entity or by making a
payment directly to the fund. Any taxpayer making a donation pursuant to this subsection
shall receive a dollar-for-dollar tax credit not to exceed twenty percent of the tax
amount on the return or five hundred dollars per taxpayer, whichever is
higher. Donations made pursuant to this section are otherwise not tax deductible and
cannot be designated as for the benefit of a particular candidate, political party, or
election contest. The department of revenue shall transfer to the fund all donations
made pursuant to this subsection. The department of revenue shall provide a space,
identified as the clean elections fund tax credit, on the first page of income tax return
forms, for donations pursuant to this subsection.

C. Beginning January 1, 1999, an additional surcharge of ten percent shall be
imposed on all civil and criminal fines and penalties collected pursuant to section
12-116.01 and shall be deposited into the fund.

D. At least once per year, the commission shall project the amount of monies that
the fund will collect over the next four years and the time such monies shall become
available. Whenever the commission determines that the fund contains more monies than
the commission determines that it requires to meet current debts plus expected expenses,
under the assumption that expected expenses will be at the expenditure limit in section
16-949, subsection A, and taking into account the projections of collections, the
commission shall designate such monies as excess monies and so notify the state
treasurer, who shall thereupon return the excess monies to the general fund.

E. At least once per year, the commission shall project the amount of citizen
funding for which all candidates will have qualified pursuant to this article for the
following calendar year. By the end of each year, the commission shall announce whether
the amount that the commission plans to spend the following year pursuant to section
16-949, subsection A exceeds the projected amount of citizen funding. If the commission
determines that the fund contains insufficient monies or the spending cap would be
exceeded were all candidate's accounts to be fully funded, then the commission may
include in the announcement specifications for decreases in the following parameters,
based on the commission's projections of collections and expenses for the fund, made in
the following order:

1. First, the commission may announce a decrease in the matching cap under section
16-952, subsection E from three times to an amount between three and one times.

2. Next, the commission may announce that the fund will provide equalization monies
under section 16-952, subsections A and B as a fraction of the amounts there specified.

3. Finally, the commission may announce that the fund will provide monies under
section 16-951 as a fraction of the amounts there specified.

F. If the commission cannot provide participating candidates with all monies
specified under sections 16-951 and 16-952, as decreased by any announcement pursuant to
subsection E of this section, then the commission shall allocate any reductions in
payments proportionately among candidates entitled to monies and shall declare an
emergency. Upon declaration of an emergency, a participating candidate may accept
private contributions to bring the total monies received by the candidate from the fund
and from such private contributions up to the adjusted spending limits, as decreased by
any announcement made pursuant to subsection E of this section.