Colorado Legislative Council Staff

STATE and LOCAL

CONDITIONAL FISCAL NOTE

TABOR Refund Impact

General Fund Revenue and Expenditure Impact

Local Government Revenue and Expenditure Impact


Drafting Number:

Prime Sponsor(s):

LLS 98-132

Rep. Pfiffner

Sen. Coffman

Date:

Bill Status:

Fiscal Analyst:

January 18, 1998

House Finance

Harry Zeid (866-4753)

 

TITLE:            SUBMITTING TO THE REGISTERED ELECTORS OF THE STATE OF COLORADO AN AMENDMENT TO SECTION 3 (1) OF ARTICLE X OF THE CONSTITUTION OF THE STATE OF COLORADO, CONCERNING PROPERTY TAX REFORM, AND, IN CONNECTION THEREWITH, MODIFYING THE VALUATION FOR ASSESSMENT PERCENTAGES FOR CERTAIN CLASSIFICATIONS OF PROPERTY AND ESTABLISHING A HOMESTEAD EXEMPTION FOR A PORTION OF THE ACTUAL VALUE OF OWNER-OCCUPIED RESIDENTIAL PROPERTY USED AS A PRIMARY RESIDENCE.



Summary of Legislation


            This House Concurrent Resolution would submit a question to the registered electors of the State of Colorado at the next general election in November, 1998, to amend the Constitution of the State of Colorado. HCR 98-1003 is a companion resolution to the statutory changes identified in HB 98-1182. Specifically, the constitutional changes contained within the resolution would require that for property tax years commencing on or after January 1, 2000:

 

                      residential real property shall be valued for assessment at 10 percent of its actual value;

                      the first $50,000 of the actual value, or an amount equal to 20 percent of the actual value, whichever is less, of residential real property that is owner-occupied and used as the primary residence of the owner, shall be exempt from property taxation;

                      industrial and commercial real property shall be valued for assessment at 15 percent of its actual value; and

                      personal property shall be valued for assessment at 15 percent of its actual value.

 

            HCR 98-1003 would take effect following the resolution’s approval by the registered electors at the November, 1998, general election. However, the resolution would not take effect unless the voters also approve HB 98-1182 at the November, 1998, general election. Therefore, the resolution is assessed as having conditional state and local fiscal impact. The fiscal impact that would occur with voter approval of HCR 98-1003 and HB 98-1182 is shown on the fiscal note for HB 98-1182.


Election Expenditure Impacts (For Informational Purposes Only)


            A General Fund line-item in the 1998-99 Long Appropriations Bill will fund the costs of publicizing any initiative or referendum proposal in newspapers and for printing and distribution of the Blue Book to all electors. The General Assembly spent $291,267 GF for one state-wide ballot proposal on the November, 1995 ballot and $1,042,014 GF for the 12 proposals that appeared on the November, 1996 ballot.


            The 1996 General Election fixed costs for mailing the Blue Book to 1.35 million registered voters was $174,036 for postage and $3,800 for obtaining mailing addresses. These costs will be the same regardless of the number of issues on the ballot. Variable costs included: Spanish translation of $11,215; newspaper publication of $644,828; printing costs of $206,806; and other costs of $1,328. Total costs were $1,042,014 GF. Fixed costs totaled $177,837 and variable costs were $72,015 per ballot issue.


            Based on the costs incurred for the 1996 Blue Book, one ballot issue cost $249,852 to print and mail to the public. The $72,015 of incremental cost would be added for each issue to the basic mailing costs of $177,837.



Departments Contacted


            Legislative Council                Revenue                      Local Affairs