The American Taxpayer Relief Act of 2012 (Act) addressed uncertainties related to federal tax policy by extending most of the Bush-era individual and corporate income tax provisions for the middle class. In general, the Act is consistent with assumptions made during the preparation of the Legislative Council Staff December 2012 revenue forecast.
This memorandum provides an overview of the transfers and economic triggers created in Senate Bill 09-228. Senate Bill 09-228 altered the limit on General Fund appropriations, created future transfers from the General Fund to transportation and capital construction, and increased the General Fund statutory reserve in future fiscal years.
The final Residential Assessment Rate Study released by the Division of Property Taxation on April 10, 2019 estimates a residential assessment rate of 7.15 percent for 2019 and 2020. The General Assembly must pass a bill before this rate becomes law. The anticipated assessed values associated with this study have a significant impact on the local share for school finance.
Colorado began receiving MSA payments in 1999. The state legislature has changed how it has used this money over time. Currently, most of the payments goes to programs in the Department of Health Care Policy and Financing and the Department of Public Health and Environment, though other departments receive payments as well.
Colorado's Taxpayer's Bill of Rights (TABOR) requires voter approval of any new taxes. Prior to voter approval, it also requires that voters receive estimates of state spending without new taxes and the new tax revenue. This issue brief provides background information on one of the consequences of actual collections differing from what was provided to voters.
The final Residential Assessment Rate Study released by the Division of Property Taxation on April 17, 2017 estimates a residential assessment rate of 7.20 percent for 2017 and 2018. The General Assembly must pass a bill before this rate becomes law. Compared with the baseline forecast which was predicated on the December 2016 Legislative Council Staff assessed values forecast, the local share for school finance with a residential assessment rate of 7.20 percent will increase by between $48.7 million and $214.2 million in FY 2017-18. The actual increase in the local share for school finance will depend on the accuracy of the forecast used to estimate the local share.
Under current law, a number of federal fiscal policies are scheduled to take effect on January 1, 2013, that will reduce the deficit by an estimated $534 billion in 2013. The reduced deficit is achieved by raising $4.93 in taxes for every $1.00 in spending cuts. If Congress and the President do not act, then federal fiscal policy will be significantly tighter. The combination of rapidly tightening fiscal policy and slow economic growth will likely send the economy into recession in the first half of 2013.
